Ministry of MSME (Micro, Small and Medium Enterprises)

About Ministry

• The Ministry of MSME (Micro, Small and Medium Enterprises), a branch of the Government of India, is the apex executive body for the formulation and administration of rules, regulations and laws relating to micro, small and medium enterprises in India.
• Ministry of MSME (Micro, Small and Medium Enterprises) envision a vibrant MSME sector by promoting growth and development of the MSME Sector, including Khadi, Village and Coir Industries, in cooperation with concerned Ministries/Departments, State Governments and other Stakeholders, through providing support to existing enterprises and encouraging creation of new enterprises.
• Functions –
  • Facilitation and credit flow to MSMEs
  • Improving competitiveness of MSMEs
  • Improve manufacturing base through upgradation of technology
  • Promotion of MSMEs through cluster bases approach
  • Marketing support to MSMEs
  • Skill development and entrepreneurship development training
  • Creation of new Micro Enterprises through Prime Minister’s Employment Generation Program (PMEGP)
  • Growth and development of Khadi and Village Industries (KVI) sector
  • Growth and development of Coir Industry

 

MSME SAMBANDH

Objective

• • to monitor the implementation of the Public Procurement from MSE by Central Public Sector Enterprises.

Salient Features

• • It is a A public procurement portal.
  • Benefit – MSE would be able to access the information about the products procured by Central Public Sector Enterprises (CPSEs) and participate in the procurement process

PUBLIC PROCUREMENT POLICY FOR MSME

• • • The Public Procurement Policy for Micro and Small Enterprises (MSE) was launched in 2012, under section 11 of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006
    • The Policy mandates every Central Ministry /Department/ PSUs to set an annual target of 20% procurement from MSE Sector.
    • A sub-target of 4% out of 20% target of annual procurement has been earmarked for procurement from MS Es owned by SC/ST entrepreneurs.
    • Ministry /Department/CPSUs shall prepare their annual procurement plan to be uploaded on their official website.

 

PRADHAN MANTRI EMPLOYMENT GENERATION PROGRAMME (PMEGP)

• Initiated in 2008-09 under Ministry of MSME (Micro, Small and Medium Enterprises).

Objective

• • To offer credit linked subsidy for generating self-employment through micro-enterprises in non-farm sector by helping traditional artisans and unemployed youth in rural and urban

Nodal Implementation body – Khadi and Village Industries Commission (KVIC)

Eligibility – Any individual above 18 years of age.

Salient Features

• • Credit linked subsidy provided
    • For setting up projects costing above Rs.10 lakh in manufacturing sector & above Rs. 5 lakh in the business /service sector
    • Higher rate of subsidy (25% to 35%) is applicable for women, SC/ST, OBC, Physically Disabled, NER applicants in rural areas.
  • Recent changes in the scheme
    • Second loan of upto Rs. 1 crore to existing and better performing PMEGP units for upgrading with subsidy of 15%
    • Merger of Coir Udyami Yojana (CUY) in PMEGP Introduction of concurrent monitoring and evaluation Mandatory Aadhaar and Pan card
    • Geo-tagging of units
    • Negative list amended allowing selling non-vegetarian food and Off Farm/Farm Linked activities. Cap on working capital for manufacturing units to 40% of project cost and for service sector to 60% of project cost.

 

Khadi and Village Industries Commission (KVIC)

• It is a statutory body formed under ‘Khadi and Village Industries Commission Act of 1956’.
• It is under Ministry of MSME (Micro, Small and Medium Enterprises).

Mandate

• • seeks to “plan, promote, facilitate, organise and assist khadi and village industries in rural areas.

Objectives

• • Providing employment in rural areas
  • Providing saleable article
  • Creating self-reliance amongst people in rural areas.

 

COIR UDYAMI YOJANA (CUY)

• Credit linked subsidy scheme for setting up of coir units
• Maximum admissible project cost – 10 lakhs plus working capital (not exceeding 25% of project cost)
• Eligibility – Individuals, Companies, SHGs, NGO Societies, Cooperative, Joint Liability groups
• Pattern of financial assistance
• 40% of the project cost as Central Government subsidy,
• 55% as loan from Bank
• 5% beneficiary contribution

 

SCHEME OF FUND FOR REGENERATION OF TRADITIONAL INDUSTRIES (SFURTI)

Objective

• • The main objectives of the scheme are to:
    • To organize the traditional industries and artisans into clusters in order to make them, competitive and provide support for their long term sustainability;
    • To provide sustained employment for traditional industry artisans and rural entrepreneurs;
    • To enhance marketability of products of such clusters by providing support for new products, design intervention and improved packaging and also the improvement of marketing Infrastructure;
    • To equip traditional artisans of the associated clusters with the improved skills and capabilities through training and exposure visits;
    • To make provision for common facilities and improved tools and equipments for artisans;
    • To strengthen the cluster governance systems with the active participation of the stakeholders, so that they are able to gauge the emerging challenges and opportunities and respond to them in a coherent manner;
    • To build up innovative and traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnerships, so as to gradually replicate similar models of cluster- based regenerated traditional industries.

Salient Features

• • Non-Government Organizations (NGOs), Institutions of the Central and State Governments and, Semi-Government institutions, field functionaries of State and Central Govt., Panchayati Raj institutions (PRIs), and similar agencies, with suitable expertise to undertake cluster development can apply.
  • Nature of assistance
    • The Scheme would cover three types of interventions namely: ‘Soft Interventions’, ‘Hard Interventions’ and ‘Thematic Interventions’.
    • The project outlay for various clusters is as follows: Heritage cluster (1000-2500 artisans *): ₹ 8 cr; Major cluster (500-1000 artisans *): ₹ 3 cr; Mini cluster (Up to 500 artisans*): ₹ 1.5 cr.
    • For NER/ J&k and Hill States, there will be 50% reduction in the number of artisans per cluster.
    • Soft Interventions: A maximum ceiling of ₹ 25.00 lakhs (100% scheme funding)
    • Hard Interventions: As per project requirement (75% scheme funding)
    • Cost of Technical Agency is calculated at 8 % of Soft and Hard Interventions (100% scheme funding).
    • Cost of Implementing Agency/ Cluster Executive is fixed at a ceiling of ₹ 20.00 lakhs (100% scheme funding).

 

 

A SCHEME FOR PROMOTION OF INNOVATION, RURAL INDUSTRY & ENTREPRENEURSHIP (ASPIRE)

Objective

• • To create jobs and reduce unemployment & grassroot economic development
  • To set up a network of technology centers, incubation centers to accelerate entrepreneurship and promote start-ups in rural and agriculture based industry
  • To Facilitate innovative business solution for un-met social needs
  • To promote innovation to further strengthen the competitiveness of MSME

Salient Features

Outcomes:

• • Setting up Technology Business Incubators (TBI)
  • Livelihood Business Incubators (LBI)
  • Creation of a Fund of Funds for such initiatives with SIDBI.

 

UDHYAM SAKHI

A one stop platform portal launched for emerging women entrepreneurs of India on International Women’s Day- March 8.

Facilities

• • To get guidance in various aspect of entrepreneurship.
  • To create business models for low cost products and services in order to empower women & make them self-reliant & self-sufficient.
  • To provide assistances through Entrepreneurship Learning Tools g. Preparing Business Plan, Incubation facility, Training programmes, Providing Mentor, One to one Investor Meet, Providing Market Survey Facility etc.

 

UDYAMI MITRA PORTAL

• • Virtual Market place portal by Small Industries Development Bank of India (SIDBI)
  • Aims at instilling ease of access of MSME to financial (banks) and non-financial (Handholding agencies) services
  • Financial – Online submission of loan applications which can be picked up by multiple lenders. Loans can be accessed without physically visiting bank branches.
  • Non Financial – financial training, skill development, project report preparation, application filing, etc.

 

OTHER SCHEMES/INITIATIVES OF MINISTRY OF MSME (MICRO, SMALL AND MEDIUM ENTERPRISES)

 

 

 

To read and learn about Government Schemes and Programs related to other Ministries, Click Here. (Notes on all Government Ministries Schemes and Programs)