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MSME DEVELOPMENT INSTITUTE, HYDERABAD-37

Govt. OF INDIA PROGRAMMES


AND SCHEMES FOR MSMEs
- AN OVERVIEW


B. SARAT KUMAR
Asst. Director

MSME DEVELOPMENT INSTITUTE
MINISTRY OF MSME, Govt. OF INDIA
HYDERABAD-37

MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
INDIA:THE UNFOLDING SCENARIO
GDP: Current US $ 4.4 Trillion
By 2020 > US $ 8 Trillion
Share of Mfg. Sector in GDP:
Current - ~ 15%
Required / Expected by 2022 - 25%

Population Median Age By 2020 27 Years

Current Challenges ( Short Term):
High inflation, High Interest Rates, Growth rate
in GDP, Credit flow, Globalised competition,
Technology, HR skills





MSME DEVELOPMENT INSTITUTE, HYDERABAD-37






MSME
THE ENGINE OF

INCLUSIVE GROWTH

AND

DEVELOPMENT

MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
MSME SECTOR - AN OVERVIEW
NO. OF MSMEs 29.8 Million

EMPLOYMENT 69.5 Million

SHARE IN GDP 8 9%

SHARE IN
MANUFACTURING OUTPUT 45%

SHARE IN EXPORTS 40%

GROWTH RATE ~ 13%
( Industry Average 6.5 to 7 %)


MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
CLASSIFICATION OF ENTERPRISES
CATEGORY INVESTMENT LIMIT Rs.
Manufacturing Service
Enterprises Enterprises
In plant & machinery In equipment

MICRO ENTERPRISES up to 25 lakh up to 10 lakh


SMALL ENTERPRISES above 25 lakh above 10 lakh
and up to 5 crore and up to 2 crore


MEDIUM ENTERPRISES above 5 crore above 2 crore
and up to 10 crore and up to 5 crore




MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
6

CHANGING PARADIGM
PRODUCTIVITY ENHANCEMENT

COMPETETIVE ABILITY ENHANCEMENT

COLLECTIVE EFFICIENCY

INFRASTRUCTURE DEVELOPMENT

CREATION OF CRITCICAL INFRASTRUCTURE

SKILL DEVLOPMENT

FOCUS THROUGH COLLECTIVES OF MSME


MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
ROLE OF MSME-DI, HYDERABAD
ESTABLISHED IN THE YEAR 1956 AS SISI

TECHNO-MANGERIAL CONSULTANCY

TECHNICAL AND SURVEY REPORTS

AWARENESS AND IMPLEMENTATION OF GOI SCHEMES

WORKSHOPS, SEMINARS, VDPs, EXHIBITIONS, IMCs

TRAININGS: MDP, BSDP, ESDP, SDP



MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
MSME SCHMES
CGTMSE: Credit Guarantee Fund Trust for
Micro & Small Enterprises.
Guarantee cover to collateral free term loan and working capital
facility up to Rs.1crore extended to existing and new enterprises

Guarantee cover available is 75% /Max cap of 62.5 Lakhs.

One time guarantee fee - 1.0% ; up to Rs. 5 lakh credit
facility; and 1.5% for credit facility above Rs. 5 Lakh

Annual service fee of 0.50% for credit facility up to Rs. 5 Lakh
and 0.75% for credit facility above Rs. 5 Lakh


MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
PMEGP: PRIME MINISTERS EMPLOYMENT
GENERATION PROGRAMME


OBJECTIVE:
TO GENERATE EMPLOYMENT OPPURTUNITIES IN RURAL
AND URBAN AREAS
TO PROVIDE CONTINUOUS AND SUSTAINABLE EMPLOYMENT TO
A LARGE SEGMENT OF ARTISANS AND UNEMPLOYED YOUTH
COST OF PROJECT:
25 LAKHS UNDER MANUFACTURING SECTOR
10 LAKHS UNDER SERVICE SECTOR
MARGIN MONEY ( MIDDLE ENDED SUBSIDY ):
Beneficiary Subsidy
contribution URBAN RURAL

GENARAL CATEGORY 10% 15% 25%
SPECIAL SC, ST, OBC 5% 25% 35%
Women, PH, Ex-Servicemen

MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
CLCSS: Credit Linked Capital Subsidy Scheme
For Technology Upgradation
Facilitating technology up gradation of MSEs

Subsidy of 15 per cent subject to a
ceiling of Rs.15 Lakhs

Subsidy linked to availing of institutional finance

Eligible technologies identified in 49 sectors



MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
Reimbursement of charges of acquiring ISO-90000/
ISO-14001/HACCP certifications
Reimbursement to the extent of 75% of the expenditure
subject to a maximum of Rs. 75,000/- in each case.

MSME-MDA SCHEME:
Participation of MSE manufacturing units in Select
International Trade Fairs / Exhibitions under MSME stall.
Reimbursement of 75% of air fare by economy return class &
50% space rent subject to upper ceiling limit of Rs.1.25 lakhs
per unit
For SC/ST/Women the reimbursement is 100% subject to the
ceiling of Rs. 1.25 lakhs per unit per year







ISO 9000/ISO 14001 CERTIFICATION REIMBURSEMENT SCHEME

MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
MSE-CDP : Micro and Small Enterprises Cluster
Development Programme
OBJECTIVES:
PRODUCTIVITY ENHANCEMENT
CREATION OF COMMON INFRASTRUCTURE
COLLECTIVE EFFICIENCY
PROVISIONS:
Activity Project Cost (Rs.) GOI Grant
1. DIAGNOSTIC STUDY 2.5 lakhs 90 %

2. SOFT INTERVENTIONS : 25 Lakhs / Cluster 75 to 90 %

3. HARD INTERVENTIONS : 15 Crores / Cluster 70 to 90 %
( For setting up CFC: Testing Labs, R&D Centres, Design Centres etc.)
4. INFRASTRUCT. DEVELOPMENT 10 crores 60 to 80 %

5. DETAILED PROJECT REPORT 5 lakhs 100 %








MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
Capacity Building of Associations:
Strengthening of database and advocacy by Industry/Enterprise
Associations and for holding Seminars/Symposiums/Workshops
by the Associations. 50% of Total project cost Limited to
10Lakhs


International Cooperation Scheme:
Assistance would be provided under the scheme to the eligible
organisations for deputation of MSME delegations to foreign
countries, with the objectives of exploring new areas of
technology infusion/upgradation, facilitating joint ventures,
improving market of MSMEs


MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
Public Procurement Policy


Applicable to Central Ministries/Department/PSUs
w.e.f 01.04.2012

Procurement goal of minimum 20%of the Total Annual
Purchases of products and services

4%(i.e. 20% out of 20%) earmarked for procurement from
MSEs owned by SC/ST Entrepreneurs

About Rs. 35,000 Crore/annum Marketing Opportunity
for MSEs



MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
S.No. Name of the Scheme Status of Scheme
1 Marketing Support/Assistance to MSMEs (Bar Code) Available
2
Support for Entrepreneurial and Managerial Development of
SMEs through Incubators
Available
3
Enabling Manufacturing Sector to be competitive through
Quality Management Standard & Quality Tech. Tools
(QMS/QTT)
Available
4
Building Awareness on Intellectual Property Rights (IPR) for
MSME
Available
5

National Programme on Application of Lean Manufacturing
(LEAN)
Available
6
Mini Tool Rooms proposed to be set up by Ministry of MSME
(MTR)
Available
7
Design Clinic Scheme for design expertise to Manufacturing
sector (DESIGN)
Available
8
Marketing Assistance & Technology Up-gradation Scheme for
MSMEs.
Available
9 Technology and Quality Upgradation Support to MSMEs Available
10 Promotion of ICT in Indian Manufacturing Sector (ICT) Available
NATIONAL MANFACTURING COMPETITIVENESS PROGRAMME UNDER XI PLAN

MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
Marketing Support/Assistance to MSMEs: BAR CODE
FINANCIAL ASSISTANCE:
75% (up to Rs. 22, 500/-) of the one time registration fee paid to
GS1 India.
75% ( up to Rs. 4,000/) of the annual fee paid to GS1 India for
the first 3years
Support for Entrepreneurial and Managerial development
of SMES through Incubators
NMCP Schemes Contd..
Eligibility: Technical/Management Institutions, Universities having
established in-house support services and facilities with
experienced/devoted faculty who can nurture/mentor innovative
business ideas that are at near commercialization stage.
Funding: Rs 66.28 Lakhs for 10 business ideas @ Rs. 6.25 lakh per
idea and Rs. 3.78 lakh for infrastructure support, training etc.




MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
Lean Manufacturing Competitiveness Programme
OBJECTIVE:
To enhance the manufacturing competitiveness of MSEs
through application of Lean Manufacturing techniques.
Lean Manufacturing:
Involves applying Lean Techniques to identify and
eliminate waste and streamline a system

ELIGIBILITY:
Mini clusters Viz. 8 to 12 units
87 mini clusters selected. Target is 100 Mini clusters

FUNDING:
Programme to be implemented for 2 years in MSEs
GOI assistance maximum of 80% of cost of the consultant
for the first year
NMCP Schemes Contd..

MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
Cost of Waste : Sigma level & Competitiveness
Sigma
Level
Defect Rate
PPM
Cost of
WASTE
(of Turnover)
Competitiveness
6
3.4 < 10%
5
233 10 - 15%
4
6210 15 - 20%
3
66807 20 - 30%
2
308537 30 - 40%
1
690000 > 40%
Industry
Average
Non
Competitive
World Class

MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
Quality Management Standards & Quality
Tech. Tools (QMS/QTT)
OBJECTIVE:
To sensitize and motivate MSEs to adopt QMS and QTT

ACTIVITIES:
Introduction of appropriate modules for Tech. institutes.

Awareness campaigns for MSEs

Organising competition watch

Implementation of QMS and QTT in select MSEs




MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
Setting up of Mini Tool Rooms under PPP Mode

OBJECTIVE: To develop more tool rooms/technological support to
MSMEs for designing and manufacturing quality tools and also to
provide training facilities.

Centre PPP mode : 40% of project cost
( not exceeding Rs. 9 crore)

State PPP Mode : 90% of cost of M&E; restricted to Rs. 9 cr.

Centre-State Mode : - Do
( State Govt. or State Agencies )


MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
Building Awareness on Intellectual Property
Rights (IPR) For MSME



Awareness/ Sensitisation Programmes on IPR. RS 1.00 Lakh
Pilot Studies for Selected Clusters/ Groups of Industries
Rs 2.50 Lakhs
Interactive Seminars / Workshops. Rs 2.00 Lakhs
Setting up of IP Facilitation Centre for MSMEs Rs 65.00 Lakhs










Assistance for Grant on Patent/ GI Registration.
(i) Domestic Patent Rs 0.25 Lakhs
(ii) Foreign Patent Rs 2.0 Lakhs
(iii) GI Registration Rs 1.0 Lakhs

NMCP Schemes Contd..

MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
Technology & Quality up gradation :
( For Energy Efficiency and product quality certification)

Subsidy to MSMEs acquiring International/ National
Product Certification :
National standards ( BIS,BEE etc) max Rs 1.5 lakh
International standard (CE, UL, ANSI etc) max 2.00 lakhs

25% subsidy for Implementation of energy efficient
technologies (EET) by MSMEs, subject to a ceiling of
Rs. 10.00 lakhs

75% ( max of 15 lakhs) of cost for setting up Carbon
Credit Aggregation Centres (CCA) in MSME clusters.
NMCP Schemes Contd..


MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
Design Clinic Scheme
One day Sensitization: GOI Rs. 60,000/-
Need Assessment & Work Shop: GOI Rs.
3.00 Lakh
Design Projects: For group of three units
GOI Rs. 9.00 Lakh
For group of Four units or More GOI Rs.
12.00 Lakh
Student Project: GOI Rs. 1.50 Lakh
NMCP Schemes Contd..

MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
Marketing Assistance and Technology Upgradattion
for MSEs:
Assistance for skill development in modern
marketing techniques
Technology up gradation in packaging
Reimbursement of 50% of stall rent and travel
expenses for participation in domestic trade fairs
and exhibition.
Adopting Limited Liability Partnership (LLP)
Framework - Reimbursement of 50% of total
expenditure subject to maximum amount of Rs. 45,000
NMCP Schemes Contd..


MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
Scheme for promotion of Information and
Communication Technology (ICT) in MSME Sector
100 MSME Manufacturing clusters are to reap benefit in
respect of standardization of their business process,
improvement in delivery time, reduction in inventory
carrying cost, improvement in productivity and quality of
production, etc through need based ICT interventions.
Activities include
Setting up of e-Readiness Centres
Subsidy for procurement of hardware and software
Establishment of National Portal for MSMEs
Evaluation /Impact assessment studies
Miscellaneous items, National Workshops, etc:

NMCP Schemes Contd..


MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
MSME-DI SETUP IN AP
MSME DEVELOPMENT INSTITUTE
MINISTRY OF MSME, Govt. OF INDIA
BALANAGAR, HYDERABAD-50037
Phone: 23078131 , Fax: 23078857
E-mail: dcdi-hyd@dcmsme.gov.in Website: http://msmehyd.ap.nic.in
BRANCH MSME-DI
INDUSTRIAL DEVELOPMENT AREA
VISAKHAPATNAM 12
Telefax: 0891-2517942
MSME TESTING STATION
INDUSTRIAL ESTATE, SANATNAGAR
HYDERABAD
Telefax: 040-23704371

MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
Our websites:

www.dcmsme.gov.in

http://msmehyd.ap.nic.in




MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
FACTORS FOR HIGH ACHIEVEMENT

THE FOUNDATION: VISION & PERSISTANCE

THE FOCUS : ENVIRONMENT, WAVE LENGTH
& FLEXIBILTY

THE PRACTICES : CUSTOMER ORIENTATION
& COLLECTIVE EFFICIENCY


MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
THE STORY
OF
TWO EAGLES

MSME DEVELOPMENT INSTITUTE, HYDERABAD-37
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