Presentation on

Activities of MSMEDI, Mumbai NMCP SCHEMES Other MSME Schemes

MSME-DI, Mumbai

for

MSME Development

MSME-DI, MUMBAI is the field Office of Ministry of MSME, Govt. of India, in the state of Maharashtra for promotion and development of MSMEs by extending various policy promotion measures, programmes and schemes.

MSME-DI, Mumbai : Jurisdiction

1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) 20) 21) 22) 23) Ahmednagar Aurangabad Beed Dhule Hingoli Jalgaon Jalna Kolhapur Latur Mumbai Nanded Nandurbar Nashik Osmanabad Parbhani Pune Raigad Ratnagiri Satara Sangli Sindhudurg Solapur Thane

INDIAN MSMEs - STRENGTHS

Number 26.1 Million MSMEs Employ 59.5 Million People

Give 45% of Industrial Production *

Account for 40%+ of Exports # Contribute 8% to GDP Exports: Rs. 177 Bn USD Production: Rs. 5.9 lakh cr. ($ 140 Bn)

No. of Items Mfg. in MSME : 8000

No. of Women Entrepreneurs : 7.4% Rural Enterprises : 50%

Micro, Small & Medium Enterprises Development Act 2006

Act enacted in Parliament in 2006, effective from 02nd October 2006.

Objective of the act : facilitating the promotion and development and Enhancing the competitiveness of micro, small and medium enterprises

Micro, Small & Medium Enterprises Development Act 2006 Classification of Enterprises Concept of Enterprises as against Industries Enterprises classified broadly into : i) Enterprises engaged in the manufacture / production of goods pertaining to any industry; & Enterprises engaged in providing / rendering services

ii)

Classification of Enterprises MANUFACTURING ENTERPRISES

Manufacturing Enterprises defined in terms of investment in plant & machinery and further classified into :
- Micro Enterprises - Small Enterprises Investment upto Rs.25 Lakh Investment above Rs.25 Lakh to Rs. 5.0 Crores Investment above Rs.5 crore & up to Rs.10 Crores

- Medium Enterprise -

Classification of Enterprises SERVICE ENTERPRISES

Service Enterprises defined in terms of investment in equipment and further classified into : Micro Enterprises Small Enterprises Investment upto Rs.10 Lakh Investment above Rs.10 Lakh & upto 2 Crores

Medium Enterprise

Investment above 2 Crores upto 5 crores

Consultancy

Management Consultancy
Management Trainings Seminars & Workshops Feasibility Studies Guidance for Improvement of Management Capability

Technical Consultancy
Product Selection Project Report Selection of Raw Material Selection of Machinery Selection of Technology

Major Services Provided Consultancy

Economic Information
Entrepreneurship Development

Marketing Assistance
Technology & Quality Upgradation

Entrepreneurship Development Programmes includes Motivation & Guidance Product selection Training Programmes & Campaigns

Special Programmes for Women & Economically / Socially Backward Class

Economic Information Services

Industrial Potential Survey Feasibility Report Industrial Profile of State & Districts

Collection & Dissemination of Statistics of MSMEI

Advice on policy issues

Marketing Assistance
Buyer Seller Meets Vendor Development Programmes Exhibitions Seminars Ancillary Development Registration under Sub-Contract Exchange Participation in International Trade Fairs Special Global Vendor Development Programme Market Development Assistance

Technology & Quality Upgradation

Workshops, Training Programmes & Guidance for Upgradation of Technology

Pollution Control & ODS Phase Out.

Meetings with Foreign Delegations for Technology Transfer

Programmes on ISO 9000 & TQM, Standardization etc

Guidance on Incentives

Assistance for Export Promotion

Export Market Information

Export Management Programmes

Packaging for Export Trainings

Common Facility Services

Workshop Facilities

Services for Industrial Designing

Product Development

Free Library Facility

Technical Assistance to various Government Agencies

National Small Industries Corporation

Bureau of Indian Standards State Directorate of Industries etc.

Steps Involved for self employment

DECISION TO BE SELF-EMPLOYED SELECTION OF THE PRODUCT LOCATION OF THE ENTERPRISE PREPARATION OF THE PROJECT REPORT REGISTRATION FINANCE (TERM LOAN) IMPORTANT CLEARANCES & LICENSES/OFFICES LAND AND BUILDING FINANCE (WORKING CAPITAL) RECRUITMENT OF PERSONNEL INSTALLATION OF MACHINERY

 Steps Involved for self employment

POWER CONNECTION/WATER SUPPLY PROCUREMENT OF RAW MATERIALS PRODUCTION MARKETING REPAYMENT OF LOANS PROFIT GENERATION AVOIDING SICKNESS MODERNISATION AND UPGRADATION OF TECHNOLOGY.

Schemes under

NATIONAL MANUFACTURING COMPETITIVENES S PROGRAMME (NMCP)

Support for Entrepreneurial and Managerial Development (Incubators)

Support for Entrepreneurial and Managerial Development (Incubators)

Support for Entrepreneurial and Managerial Development (Incubators)

Enabling Manufacturing Sector to be competitive through Quality Management Standard & Quality Tech. Tools (QMS/QTT)

National Campaign for Investment in Intellectual Property Rights(IPR)

National Campaign for Investment in Intellectual Property Rights(IPR)

Other NMCP Schemes

- Marketing Support/Assistance to MSMEs (Bar Code) - National Programme on Application on Lean Manufacturing (LEAN) - Mini Tool Rooms proposed to be set up by Ministry of MSME (MTR) - Promotion of ICT in Indian Manufacturing Sector (ICT) - Technology & Quality Upgradation Support (TECH UP) - Design Clinic Scheme for design expertise to Manufacturing sector (DESIGN)

- Marketing Assistance/SMEs and Technology Up gradation Activities Ministry of MSME in co-operation with TIFAC (tec inf and forecasting and assessment council ) /CSIR (MARKETING)

Other Schemes for Development of MSMEs

MSE-Cluster Development Programmes

Clusters are defined as sectoral and geographical concentration of micro, small & medium enterprises with interconnected production system leading to firm/unit level specialization and developing local suppliers of material inputs and human resources. Availability of a local market/intermediaries for the produce of the cluster is also a general characteristic of a cluster

This Ministry runs various schemes and programmes for promotion and development of micro & small enterprises. The assistance through these schemes and programmes is provided for individual or collective development of MSE. The strategy is now to subsume the essential features of the schemes having collective approach for development of clusters such as Scheme for Integrated Infrastructural Development and Scheme for setting up of Testing Centres/ programmes under SICDP. Although the objective of SICDP is to proved assistance to MSE for common purpose, it is also not less important to strengthen industrial units located in the cluster individually. There are schemes of Ministry of SSI for credit, technology upgradation, quality certification, such as, Credit Guarantee Scheme for investment, Credit Linked Capital Subsidy Scheme for technology upgradation, ISO 9000/14001 reimbursement scheme for certification, etc. through which assistance is provided to an individual micro & small enterprises. Under the new approach, the emphasis is to dovetail all such schemes under SICDP for the overall development of MSE and optimum utilisation of resources.

Scheme for Capacity Building

Scheme of International Cooperation

Introduction Technology infusion and/or upgradation of Indian MSMEs, their modernisation and promotion of their exports are the principal objectives of assistance under the Scheme of International Cooperation. The Scheme covers the following activities: (i) Participation by Indian MSMEs in exhibitions, fairs and buyer-seller meets in India, in which there is international participation. (ii) Deputation of MSME business delegations to other countries for exploring new areas of technology infusion/upgradation, facilitating joint ventures, improving market of MSME products, foreign collaborations, etc. (iii) Holding international conferences and seminars on topics and themes of interest to the MSME. 2. Eligible Organisations Besides the Ministry of MSME, events under the Scheme can be organised by: (a) State/Central Government Organisations; (b) Industry/Enterprise Associations; and (c) Registered Societies/Trusts associated with the MSME. 3. Eligibility Conditions The eligibility conditions financial assistance under the Scheme are:

(a)
(b) (c)

The organisation should be suitably registered (i.e., companies under the Companies Act, societies under the Societies Act, etc.) with the primary objective of promotion and development of MSME.
The organisation must be engaged in such activities for at least last 3 years and have a good track record. The organisation should have regular audited accounts for the past 3 years.

(d)

Events, for which financial support under the Scheme is sought, must have significant international participation.

Credit Linked Capital Subsidy Scheme (CLCSS)

The revised scheme aims at facilitating technology up gradation by providing 15 per cent upfront capital subsidy with effect from the 29 th September, 2005 (12 per cent prior to 29.09.2005) to SSI units, including tiny, khadi, village and coir industrial units (hereinafter referred to as SSI units), on institutional finance availed of by them for induction of well established and improved technologies in the specified sub-sectors / products approved under the scheme.
Scope of the Scheme 3.1 i) ii) iii) iv) v) vi) vii) viii) ix) x) xi) xii) xiii) xiv) xv) xvi) xvii) xviii) xix) xx) xxi) xxii) xxiii) xxiv) The scheme would cover the following technology needs / products/sub - sectors: Bio-tech Industry Common Effluent Treatment Plant Corrugated Boxes Drugs and Pharmaceuticals Dyes and Intermediates Industry based on Medicinal and Aromatic plants Plastic Moulded/ Extruded Products and Parts/ Components Rubber Processing including Cycle/ Rickshaw Tyres Food Processing (including Ice Cream manufacturing) Poultry Hatchery & Cattle Feed Industry Dimensional Stone Industry (excluding Quarrying and Mining) Glass and Ceramic Items including Tiles Leather and Leather Products including Footwear and Garments Electronic equipment viz test, measuring and assembly/ manufacturing, Industrial process control; Analytical, Medical, Electronic Consumer & Communication equipment etc. Fans & Motors Industry General Light Service(GLS) lamps Information Technology (Hardware) Mineral Filled Sheathed Heating Elements Transformer/ Electrical Stampings/ Laminations /Coils/Chokes including Solenoid coils Wires & Cable Industry Auto Parts and Components Bicycle Parts Combustion Devices/ Appliances Forging & Hand Tools

xxv) xxvi) xxvii) xxviii) xxx) xxxi) xxxii) xxxiii) xxxiv) xxxv) xxxvi) xxxvii) xxxviii) xxxix xxxx) xxxxi) xxxxii) xxxxiii) xxxxiv) xxxxv) xxxxvi) xxxxvii) xxxxviii)

Foundries Steel and Cast Iron General Engineering Works Gold Plating and Jewellery Steel Furniture Toys Non-Ferrous Foundry Sport Goods Cosmetics Readymade Garments Wooden Furniture Mineral Water Bottle Paints, Varnishes, Alkyds and Alkyd products Agricultural Implements and Post Harvest Equipment Beneficiation of Graphite and Phosphate Khadi and Village Industries Coir and Coir Products Steel Re-rolling and /or Pencil Ingot making Industries Zinc Sulphate Welding Electrodes Sewing Machine Industry Industrial Gases Printing Industry Machine Tools

Credit Guarantee Fund Scheme for Small Industries

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) was launched by the Government of India to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme. The Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises. The scheme was formally launched on August 30, 2000 and is operational with effect from 1st January 2000. The corpus of CGTMSE is being contributed by the Government and SIDBI in the ratio of 4:1 respectively and has contributed Rs.1346.54 crore to the corpus of the Trust up to September 30, 2007. Based on the future requirement, the corpus is likely to be raised to Rs.2500 crore. Eligible Lending Institutions The institutions, which are eligible under the scheme, are scheduled commercial banks (Public Sector Banks/Private Sector Banks/Foreign Banks) and select Regional Rural Banks (which have been classified under Sustainable Viable category by NABARD). National Small Industries Corporation Ltd. (NSIC), North Eastern Development Finance Corporation Ltd. (NEDFi) and SIDBI have also been made eligible institutions. As on September 30, 2007, there are 62 Member Lending Institutions (MLIs) of the Trust, comprising 28 Public Sector Banks, 13 Private Sector Banks, 18 Regional Rural Banks and 3 other Institutions viz., NSIC, NEDFI and SIDBI.

Credit Guarantee Fund Scheme for Small Industries..

ISO Reimbursement Scheme

The Small Scale Sector has emerged as dynamic and vibrant sector of Indian Economy and it has been making significant contribution to industrial production, export and employment generation. The process of economic liberalization and market reforms has opened up the Indian small scale sector to the global competition. In order to enhance the competitive strength of the small scale sector, the Government introduced an incentive scheme for their technological upgradation/quality improvement and environment management. The scheme provides incentive to those small scale/ ancillary undertaking who have acquired ISO 9000/ISO 14001/HACCP certifications. The scheme for ISO 9000 reimbursement in operation since March, 1994 has now been enlarged so as to include reimbursement of expenses for acquiring ISO 14001 certification also vide this Office Administrative Order No.41(8)/ISO/Electx./2002 dt. 28th October, 2002. More than 2375 SSI & ancillary units have

already been benefited from the earlier scheme of ISO 9000 till 31st March, 2002.

ISO 9000 Reimbursement scheme

The Salient features of the Scheme 1. The Scheme envisages reimbursement of charges of acquiring ISO-9000/ISO-14001/HACCP certifications to the extent of 75% of the expenditure subject to a maximum of Rs. 75,000/- in each case. 2. The Permanent Registered Small Scale/ancillary/Tiny/Small Scale Service Business Enterprises (SSSBE) units are eligible to avail the Incentive Scheme. 3. The Scheme is applicable to those SSI/ancillary/Tiny/SSSBE units who have already acquired ISO-9000/ISO14001/HACCP certification. 4. It is an all India Scheme administered by Development Commissioner (SSI), Ministry of SSI, Govt. of India. With effect from 30.8.2006 procedure of the Screening Committee to decide the reimbursement has been discontinued and the Screening Committee has been dismantled to reduce delay in the sanctioning of reimbursement to the applicants. The Industrial Adviser co-coordinating this Scheme, has been delegated with powers to sanction the reimbursement as per the present provisions for reimbursement. 5. The Scheme shall provide one time reimbursement only against a Entrepreneurship Memorandum Number. The amount of incentive/subsidy/grant already availed for acquiring ISO 9000 or ISO 14001/HACCP Certification under any Central Govt. (including DC(MSME) Incentive Scheme)/State Govt. /Financial Institution shall be adjusted against the entitlement of reimbursement. It means the total entitlement of reimbursement of acquiring one or more than on certifications shall be up to the maximum limit of Rs. 75,000/- only. In case a unit has received reimbursement/subsidy/grant from Central Govt./State Govt./Financial Institution against any one of the certifications for an amount less than maximum limit of Rs. 75,000/-, the unit shall be eligible to receive the balance amount only.

6. (a) Only one time reimbursement is allowed against a E.M.Number for acquiring ISO-9000/ISO-14001/HACCP certification; irrespective of the fact whether the concerned SSI has one or more than one Unit(s) within the same premises/location or outside .
(b) In case an ISO-9000/ISO-14001/HACCP certificate is obtained jointly by SSI units (even having a separate Permanent E.M.Number) under the corporate/group of Industries category, the total reimbursement shall be limited to 75% of the total expenditure incurred by the concerned units or Rs. 75,000/- whichever is less; and each SSI unit shall get the amount on pro-rata basis.

Other MSME Schemes

Participation in the International Exhibitions / Fairs - For registered Small & Micro manufacturing enterprises with DI/DIC

Financial Assistance for using Global Standards (GS1) in Barcoding - Recognized the importance of barcoding and avail financial assistance through Office of DC(MSME).

Purchase and Price Preference Policy - This is administered through the Single Point Registration Scheme of NSIC. Under this, 358 items are reserved for exclusive purchase from MSME by Central Government. Other facilities include tender documents free of cost, exemption from earnest money and security deposit and 15% price preference in Central Government purchases - for individual MSMEs Integrated Infrastructure Development (IID Scheme) - Assistance upto 40% or Rs.2.00 crores, whichever is less for setting up industrial estates for MSME units. For NE, assistance is 80% or Rs.4.00 crores - for State Governments/industry associations/ NGOs. Mini Tool Rooms - Assistance upto 90% or Rs.9.00 crores, whichever is less for setting up new Mini Tool Rooms. For upgradation of existing Tool Rooms, assistance is 75% or Rs.7.5 crores - for State Governments. MSME MDA - The scheme offers funding upto 90% in respect of to and fro air fare for participation by MSME Entrepreneurs in overseas fairs/trade delegations. The scheme also provide for funding for producing publicity material (upto 25% of costs) Sector specific studies (upto Rs. 2 lakhs) and for contesting anti-dumping cases (50% upto Rs. 1 lakh) - for individual MSMEs & Associations. Assistance to Entrepreneurship Development Institutes - For strengthening training infrastructure in EDIs, assistance upto 50% or Rs. 50 lakhs whichever is less - for State Governments.

Thank you
For Further Information Please Contact: Director MSME- Development institute Ministry of MSME, Kurla Andheri Road, Sakinaka Mumbai-400 072 Phone: 022-25874305/6090, Fax: 2857 8092 E.Mail: dcdi-mumbai@dcmsme.gov.in Website: www.msmedimumbai.gov.in