Recognizing the potential of MSMEs & startups the government is constantly making efforts in form of policy reforms to support the entrepreneurs who help contribute to the economy and for their growth expansion. In this journey, there is a need for experienced mentors/professionals to come forward and invest their time in nurturing talent by applying their expertise and assisting them thereby contributing to nation-building.

1. 1
GOLDMINE OF OPPORTUNITIES FOR PROVIDING CONSULTANCY TO
MSMEs & STARTUPs ENTREPRENEURS

2. 2
About the Author:
CA (Dr.) Adukia left no stone unturned during his career span expanding to more than
39 years. Having graduated from Sydenham College of Commerce & Economics in
1980 as 5th rank holder in Bombay University and he has also received a Gold Medal
for highest marks in Accountancy & Auditing. He cleared the Chartered Accountancy
Examination with 1st Rank in Intermediate and 6th
Rank in Final. He also secured 3rd
Rank in the Final Cost Accountancy Course. He has been awarded G.P. Kapadia prize
for best student of the year 1981. He also holds a Degree in law, PhD in Corporate
Governance in Mutual Funds, MBA, Diploma in IFRS (UK), and Diploma in Labour
law and Labour welfare, Diploma in IPR, Diploma in Criminology.
His mantra is to provide services to clients that help them in building better and
sustainable businesses. He is a knowledge seeker and believes that knowledge needs
to be ingrained and used for the benefit of society at large.

3. 3
LEVERAGE YOUR KNOWLEDGE AND EXPERTISE IN NATION
BUILDING
In the economic development of nation, contribution of Micro, Small and Medium
Enterprises which in short “MSME” is crucial, not only the sector enhances economic
growth but is also responsible for the largest employment generation sector next to
agriculture as almost 30% of countries GDP belong to MSME, it is for such valuable
contribution MSMEs is proudly considered as “the backbone of India’s economy”.
On the other hand Start-ups which are the combination of ideas and innovation
executed in entrepreneurship emerging as crucial leading the country on the path of
success.
Recognizing the importance of both the government is constantly making policy
reforms and initiatives to support the potential entrepreneurs help contribute in
economy and for their growth expansion. In this journey there is need for
experienced mentors/professionals to come forward and invest their time in nurturing
talent by applying their expertise and assisting them thereby contributing to nation
building.

4. 4
IGNITE YOUR UNLIMITED GOALS WITHOUT ANY BOUNDARY AND
SHARE YOUR EXPERTISE
If success is an engine then passion is fuel to that engine. Have you ever wondered
how successful people are better able to stick to their plans and achieve even more
success in their life? Well the mantra is
PASSION- START- CONSISTENCY-SHARING THE EXPERTISE-GROW
WITH ALL
As we have said earlier passion tends to drive success, mere passion will not help to
achieve everything you want if you don’t start.
“Everything is created twice, first in the mind than in reality”
 Robin Sharma, The Monk Who Sold His
Ferrari: A Fable About Fulfilling Your Dreams
And Reaching Your Destiny
There is no good time to start than now, things will happen the way you want them to
happen only if you start working on it.
Mere saying that “I Want” won’t let it happen you need to set your goals and
remember there is no limit to your goals. Additionally set goals that motivate you,
meaning such goals that make you happy, that are important to you.
It is equally important that you are committed to your goal, to maximize the likelihood
of success. To make sure this write down all your goals and why they are important to
you this will helps you to refresh again whenever you will lose confidence in your
ability to make it happen.
They say the setting goal is much simpler than being consistent on it, perhaps the
power of consistency may be the only factor that separates successful and
unsuccessful people. Successful people are successful because they chose to be

5. 5
consistent with their goals, actions, and passion. Remember there is no shortcut to
hard work.
If you make it this far let us now discuss how to share your knowledge.
See having knowledge and expertise is one thing and sharing them among fellow
aspirants is another thing. When you share your knowledge it helps to deepen your
knowledge and engrains what you know.
Be A Leader- Stand Up – Be Vocal About What You Have To Offer
The legendary Greek Philosopher “Aristotle” once said- “Man is by very nature a
social animal; Society is something that precedes the individual.”
Therefore if we know something it becomes our duty to reach out as success is not just
about achieving your goal but to inspire others. We are blessed to be born in the
internet age where we can meet 1000s of people on a single digital platform. It helps
us to reach out to society that needs our services.
Powerful social media tools such as Facebook, Linked-in, Gmail, Youtube, Blogs
websites, Twitter, What’s app, Instagram, e- articles, etc. allows us to share our
knowledge and expertise and helps connecting people even though they are living
miles apart.
Collaborating and knowledge sharing:
The Internet has been the single biggest achievement of humans in the last 20 years
that has removed almost all communication barriers. Social media apps have emerged
as collaborating and knowledge-sharing tools that permit individuals to join a
community share and collect relevant knowledge. The Facebook group can join 6000
groups, similarly, a person can send over 2000 emails daily, and professional expertise
tools such as linked in allows you to be part of 100s of the group. Additionally, a
certain platform such as Twitter, blogs, podcasts helps to put our viewpoints.

6. 6
Podcast power:
Although there are lots of tools available across the internet for knowledge sharing,
audio content is more digestible and absorbable, than is possible through the podcast.
For whom podcast is beneficial:
Consultant, Advisors, Motivational coach, experts- podcast allows such professionals
who have the desire to motivate others and possess valuable knowledge and expertise
that they can share with society. Not only this will benefit the end-user but their
experience will add to their learning.
You may be a legal professional, or a doctor, or a sports person, and there is no code
of ethics of profession that will debar you from your knowledge sharing. A doctor will
share his health tips, a sportsperson may share his fitness tips and a lawyer may share
his knowledge for general legal awareness.
Before the digital age, book writing, news articles were such few channels of
knowledge sharing, although these are equally important in the present age, with little
technological advancement you will reach your fellow learners perhaps much faster.
We take this opportunity to invite the knowledge-sharing hub as we feel it is our
prime duty to share what we know with society. Let us become members and address
the community which needs our services.
At this juncture, we find it apt to remember English Historian and Geologist Charles
Darwin’s famous quote
“In the long history of humankind those who learned to collaborate and
improvise most effectively have prevailed.”

7. 7
INDEX
I. Introduction
II. What is MSME?
III.Statutory and non statutory bodies under m/o msme
IV.Why to start MSME
A. List of small buisness idea
B. Online buisness ideas
C. Finance assistance through govt scheme
D. Msme registration
V. Recent updates on MSME
VI.Professional opportunities under MSMES
VII. How can Micor and Small Enterpirses increase sale?
VIII. Governmentt scheme available for MSME sector
IX.Subsidy scheme available for entrepreneurs
X. What is start-up ?
A. Benefits after recognition through startup india
B. List of startups State/UT wise
C. Regulatory reforms pertaining to startups by various ministries, dept and
regulators
XI.Mentoring start-ups
XII. Professional opportunities under Start-ups
XIII. Key factors to attract better investment for your startups
XIV. Understand State/UT wise startup policies
XV. Funding for your startups
XVI. Make in India
XVII. Some ideas for startups
XVIII. List of unexplored areas for professionals
XIX. Relevant website

8. 8
I. INTRODUCTION:
The fact that almost 65% of the country’s population comprises of young age
particularly under age of 35 years. It has gain status of young nations in the world.
While it is also true that the more working eligibile population , the more the
unemployment problems are, and if there is one sector that is emmensly contributing
to resolve such issue is the Micro, Small and Medium Enterprises sector. Comprising
of almost 90% by Micro enterprises sector largely covered urban and rural areas
which are heart and soul of the nation.
With the continous efforts and initiative brought in by government, the sector is on its
path of bringing India among the list of leading economies of the world. The sectors
contemplates the idea of entreprenuership and has categories the same into Micro,
Small and Medium based on the criteria of investment. The latest threshold given for
MSME is as below:
 an investment of less than Rs 1 crore and turnover of less
than Rs 5 crore are classified as Micro;
 an investment of less than Rs 10 crore and turnover of less than Rs 50 crore are
classified as Small, and
 an investment of less than Rs 20 crore and turnover of less than Rs 100 crore
are classified as Medium.
Similarly, the Startups though may be small companies but they can play a
significant role in economic growth too. They helps in createing more jobs which
means more employment, and more employment means an improved economy. Not
only that, startups can also contribute to economic dynamism by spurring innovation
and injecting competition. New entrepreneurs can bring new ideas to the table, much
needed to stir innovation and generate competition. Perhaps that might be the resaon
that the governemnt have now shifted it’s growth apporach to make MSME’s and
Start-ups engines of India’s Growth.

9. 9
However in this entreprenuership journey, the professionals who are excellent with
regulatory and complaince procedure, well updated with various schemes and
intiatives, statutory requirements can be of great help. This professionals can guide the
prospective entrepreneurs in the capacity as
 Obtaining Project Financing/Term Loans;
 Capital Raising from other sources in the market;
 Conduct the Due diligence process before approaching the funds;
 Helps in establishing a corporate entity; Ensure all Statutory Filings and
Register maintenance;
 Act as a legal advisor and representative and many more
The book is purpoted to provide you with such goldmines of opportunities whether
Individual seeking entreprenuership opportunities or professionals expanding their
reach in terms of mentoring by using excellen they are possessing.
II. What is MSME?
MSME stands for Micro, Small and Medium Enterprises. Being repsonsible for
contributing the expansion of entrepreneural endeavours it has now widening the its
domain across country.

10. 10
The recent data published by the government through the ministry of MSME
https://msme.gov.in/ speaks that there are nearly 633.88 lakhs MSMEs out of which
630.52 lakh are only micro-enterprises. MSME stands for Micro, Small, and Medium
Enterprise. The fact that the sector alone contributes almost 30% of total GDP and
45% to the total export, has earned it the status of an “indispensable part” in the
development of the nation.
How MSMEs came into life?
The seeds of the need self-reliancy and employment generation have started long back
ago, right with the efforts of Swadeshi movement. The swadeshi moment that started
around 1905 has impacted in the sense of rejuvenating the feeling of self-sufficiency
by encouraging village and local industries. Not only the movement focused on
achivement of self reliancy but it also responsible in providing employment to the
people. Later the enactment of industrial policies since independence has a crucial
contribution in the promotion of small- scale sector.
 Industrial policy since independence-
A. The Industrial policy 1948
- The first Industrial Policy was annouced on 6th
april 1948 that was
introduced by Dr. Shyama prasad mukherjee the then industry
minister.
- The policy introduced a mixed economy wherein private and public
sector were accepted as a two domain for the economic development
- Categorization of large industry under it were as further
Sr.
no.
Industries with
exclusive state
monopoly/strategic
industries
Industries with
government
control
Industries
with mixed
sector
Industry in
private
sector
1 Industries engaged in – Industries of
national
Such
industries
Rest of the
industries

11. 11
importance – that allowed
to operate in
public and
private
sector
also such
2 atomic energy, railways
and arms and
ammunition
fertilizers,
heavy
machinery,
defense
equipment,
heavy
chemicals
small
buisness, and
small
industries
enganged in
utilization of
local
resources and
generate
employment
B. The Industrial policy 1956
- It was announced on 20th
april 1956 replaced the earlier one
- The approach of the policy was non discriminatory to the private
sector and promotion of village and small – scale industries
C. The Industrial policy 1980
- The policy was announced on 23rd
july 1980 by the congress
- It redefined the role of small scale units
- The policy was responsible to promote ancillarisation
D. The Industrial policy 1990
- The policy was announced by Janata Dal government in 31st
may
1990
- It raised investment ceiling of small scale industries in terms of plant
and machineries from 35 to 60 lakhs and for anicilliary units from 45

12. 12
to 75 lakhs whereas for tiny units would be increased from present
Rs.2 lakhs to Rs.5 lakhs.
- The industrial policy 1990 encourage exports and dispersal in rural
areas
- The Units with at least 30 per cent of annual production for export
were permitted to step up their investment in plant and machinery to
Rs. 75 lakhs
E. The New industrial policy 1991
- The Private sector under this policy were given welcome in major
industries previously reserved for government industries
- Intended with the promotion of small, tiny and village industries
approach of protection replaced with competitiveness
- Responsible for Liberalisation, privatisation and globalisation
- The policy abolished industrial licensing that become limited to less
than 15 sectors
The Industrial Development and Regulation Act, 1951:
The Industrial Development and Regulation Act, 1951 was introduced and effective
from 8th
may 1952. It provide the industrialisation strategy by laying out the basic
framework
The framework of the fact based on captial intensive heavy industries ultimately
leading the development of Ancilliary unit- to cater the demand of large industry.
The Section 11B of the act introduced vide amendment act of 1984 , effective since
12th
January 1984 empowers the central government to specify factors to regard the
industrial undertaking as Small Scale or as an Ancillary industrial undertaking.
Invoking such power the Central Government vide notification of the Ministry of
Industry number S. O. 857(E), dated 10th
december 1997 specified below factors
a. Small scale industrial undertaking: An industrial undertaking in which
the investment in fixed assets in plant and machinery, whether held on

13. 13
ownership terms of on lease or on hire purchase, does not exceed rupees
three crores;
b. Ancillary industrial undertaking: An industrial undertaking which is
engaged or is proposed to be engaged in the manufacturing or production of
parts components, sub-assemblies, tooling or intermediates, or the rendering
of services, and undertaking supplies or proposes or supply or renders not
more than fifty per cent of its production or services, as the case may be, to
one or more other industrial undertakings and whose investment in fixed
assets in plant and machinery, whether held on ownership terms or on lease
or on hire purchase, does not exceed rupees three cores.
Ultimately the Small Industries Development Organization (SIDO) was setup in 1954
as an apex body for sustained and organized growth of small enterprises. Thereafter
Small Industries Service Institute (SISI) set up in 1954 branches all over India to train
youth in skills, and the tool rooms were established with German and Danish
assistance for providing technical services essential to small enterprises for skilled
training.
In 1956, the National Small Industries Corporation, The Khadi and Village Industries
Commission and the Coir Board were also setup. The Small Industries Development
Bank of India was established on 2 April 1990 and a Technology Development and
Modernisation Fund was created to accelerate financial and technical services to the
sector by SIDBI.
The Interest On Delayed Payments To Small Scale And Ancillaryindustrial
Undertakings Act, 1993
The Interest On Delayed Payments To Small Scale And Ancillary industrial
Undertakings Act, 1993 introduced to facilitate prompt payment of dues to MSEs. The
1993 act had a provision of compound interest to be levy upon buyer in case of default
in payment to small scale and ancilliary industrial undertakings where the delay is
more than 30 days of accepting goods/services or surpasses the agreed date in
agreement.

14. 14
The Ministry of Small Scale Industries and Agro & Rural Industries (SSI & ARI)
came into being from 1999 to provide focused attention to the development and
promotion of the sector.
Further a Credit Linked Capital Subsidy Scheme was launched in October 2000 to
encourage technology upgradation in the MSE sector and a Credit Guarantee Scheme
was started August 2000 to provide collateral free loans to micro and small
entrepreneurs, particularly the first generation entrepreneurs. Despite such efforts a
need of full fledge legislation governing the small industries was felt.
Finally the Micro, Small Medium Enterprises Development Act 2006 was introduced
effective from 2nd
october 2006 for faciliating development of this enterprises. On 9th
may 2007 with the amendment in the Governmet of India (Allocation of Business)
Rules, 1961 the Ministry of Small Scale Industries and Ministry of Agro and Rural
industries merged into Ministry of Micro, Small & Medium Enterprises
Hence Parent ministry of MSME is =
The Ministry of Micro, Small & Medium Enterprises [in short M/o MSME]
https://msme.gov.in/
Three important changes took place:
a. The concept of “enterprise” replaced the former concept of “industry”
b. The resultant change was recognition & coverage of “services” by the
Ministry of MSME
c. It defined medium enterprises for the first time, seeking integration of the
three segments of enterprises namely MICRO, SMALL AND MEDIUM
PRESENT CLASSIFICATION OF MSME:
The provision of classification of MSME is given under Section 7 of the MSMED
Act, 2007.
Revised msme classfication w.e.f. 1st
July 2020
The enterprises are classified based on investment in equipment and annual turnover.

15. 15
Criteria
Manufacturing Service
Turnover Investment Turnover Investment
Micro
Rs. 5 crore
(US$ 0.6
million)
Less than Rs. 25 lakh (US$
0.03 million)
Rs. 5 crore
(US$ 0.6
million)
Less than
Rs. 10 lakh
(US$ 0.01 million)
Small
Rs. 50 crore
(US$ 6.8
million)
More than Rs. 25 lakh
(US$ 0.03 million) but less
than Rs. 5 crore (US$ 0.6
million)
Rs. 50
crore
(US$ 6.8
million)
More than Rs. 10
lakh (US$ 0.01
million) but less
than Rs. 2 crore
(US$ 0.3 million)
Medium
Rs. 250 crore
(US$ 34
million)
More than Rs. 5 crore (US$
0.6 million), but less than
Rs. 10 crore (US$ 1.4
million)
Rs. 250
crore (US$
34 million)
More than Rs. 2
crore
(US$ 0.3 million)
but does not exceed
Rs. 5 crore
(US$ 0.6 million)
As per the latest decision taken vide circular 2nd
July 2021 Retail and wholesale trade
that was left out of the ambit of MSME until now, will be treated as MSME and are
eligible to avail the benefits of priority sector lending.
Accordingly, the list of additional activities are as under:
45 Wholesale and retail trade and repair of motor vehicle and motorcycles
46 Wholesale trade except of motor vehicles and motor cycles
46 Retail Trade Except of Motor Vehicles and motor cycles
The policy of priority sector lending is mandated by Reserve Bank of India which
requires for banks specifically Scheduled Commercial Bank excluding Regional Rural
Banks (RRBs) and Small Finance Banks (SFBs) to offer a percentage of their loans to
specific sectors which are looked upon as impacting larger section of population,

16. 16
employment- intesive that are Agriculture, MSMEs, Export Credit, Education,
Housing, Social Infrastructure, Renewable Energy & others.
The categories of sector treated as priortiy sector are:
1. Agriculture
2. Micro,small and medium enterprises
3. Export credit
4. Education
5. Housing
6. Social infrastructure
7. Renewable energy
8. Other
The master direction of RBI can be access at
https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=10497.
As per the said direction the Priority Sector Lending account for 40% of adjusted net
bank credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever
is higher out of which 7.5 secured for MSMEs.
The MSMED Act 2006 u/s 32 repealed the Interest on Delayed Payments to Small
Scale and Ancillary Industrial Undertakings Act, and a Chapter V of the 2006 act
deals with Delayed payment to MSEs [Ss 15 to 25] introduced which provides that the
MSEs can file delyaed payment cases at online portal of MSME Samadhaan
https://samadhaan.msme.gov.in/MyMsme/MSEFC/MSEFC_Welcome.aspx

17. 17
III. STATUTORY AND NON-STATUTORY BODIES UNDER M/o
MSME
There are statutory and non-statutory bodies working under M/o MSME
1. Khadi and Village Industries Commission (KVIC)
Key points:
- Set up u/the Khadi and Village Industries Commission Act, 1956
- https://www.kviconline.gov.in/
- Khadi industries Production and sale upto march 2021 = Rs. 2104 and Rs 3856
respectively
- Village industries Production and sale upto march 2021 = Rs 76582 and Rs
101306 crore repsectively
Description:
The Khadi& Village Industries Commission (KVIC) established under the Khadi and
Village Industries Commission Act, 1956 (61 of 1956), is a Statutory Organization
under the aegis of the Ministry of MSME, engaged in promoting and developing
Khadi and Village Industries for providing employment opportunities in the rural
areas, thereby strengthening the rural economy. KVIC has been identified as one of
the major organizations in the decentralized sector for generating sustainable non-farm
employment opportunities in rural areas at a low per capita investment. It undertakes
activities like skill improvement, transfers of technology, research & development,
marketing, etc., and helps in generating employment / self-employment opportunities
in rural areas.
2. Coir board
Key points:
- http://coirboard.gov.in/
- Set up u/the Coir Industry Act, 1953 for promotion of coir and coir industries
- India largest country to produce coir accounting for 80% of world’s production

18. 18
- Industry employ 7.37 crore people in country
Description:
Coir Board is a Statutory Body established under the Coir Industry Act, 1953 for
promoting the overall development of coir industry including export promotion of
Coir and Coir |Products and improvement of the living conditions of the workers
engaged in this traditional industry in India.
3. The National Small Industries Corporation Limited (NSIC)
Key points:
- https://www.nsic.co.in/
- an ISO 9001:2015 certified Government of India Enterprise under m/o msme
- it has set up Training-cum-Incubation Centre
- provides a package of services as per the needs of MSME sector
description:
The National Small Industries Corporation Ltd. (NSIC) is an ISO 9001-2015 certified
Government of India Enterprise under Ministry of Micro, Small and Medium
Enterprises (MSME). NSIC has been working to promote aid and foster the growth of
micro, small and medium enterprises in the country.
4. National Institute for Micro, Small and Medium Enterprises, (NI-MSME)
Key points
- originally set up as Central Industrial Extension Training Institute (CIETI)
in1960
- https://www.nimsme.org/
- under the MSMED Act 2006 rename as National Institute for Micro, Small and
Medium enterprises (NI-MSME)
description:

19. 19
NI-MSME was originally set up as Central Industrial Extension Training
Institute (CIETI) in New Delhi in 1960 under the then Ministry of Industry and
Commerce, Government of India. The Institute was shifted to Hyderabad in
1962 as a registered Society in the name of Small Industry Extension Training
Institute (SIET). After the enactment of MSMED Act, 2006, the Institute
expanded focus of its objectives and re-designated its organization structure. In
line with the new Act, the Institute was rechristened as National Institute for
Micro, Small and Medium enterprises (NI-MSME). It is currently an
organization under the aegis of the Ministry of Micro, Small and Medium
Enterprises (formerly Ministry of SSI & ARI), Government of India.
5. Mahatma Gandhi Institute for Rural Industrialisation (MGIRI)
Key points
- http://www.mgiri.org/
- A national institute under m/o MSME
- Vision is of Rural Industrialization in the country along the lines of Gandhian
vision of sustainable and self reliant village economy
Description:
The Jamnalal Bajaj Central Research Institute (JBCRI), Wardha was revamped
with the help of Indian Institute of Technology, Delhi as a national level institute
under the Ministry of MSME in October 2008 called MahatmaGandhi Institute for
Rural Industrialization (MGIRI).
I. OTHER INITIATIVES BY MSME
a. Technology centres http://sampark.msme.gov.in/?p=abouttool
- Training to unemployed workforce
- There are 18 of such training centres
- Out of 18, ten centres for technological support
- Until dec 2020 total 81,217 were trained
List of technology centres:

20. 20
1. Central Tool Room &Training Centre (CTTC), Kolkata
2. Central Tool Room (CTR), Ludhiana
3. Indo German Tool Room (IGTR), Indore
4. Indo German Tool Room (IGTR), Ahmedabad
5. Indo German Tool Room (IGTR), Aurangabad
6. Indo Danish Tool Room (IDTR), Jamshedpur
7. Central Tool Room &Training Centre (CTTC), Bhubaneswar
8. Tool Room &Training Centre (TRTC), Guwahati
9. Central Institute of Hand Tools (CIHT), Jalandhar
10.Central Institute of Tool Design (CITD), Hyderabad
11.Electronics Service &Training Centre (ESTC), Ramnagar
12.Institute for Design of Electrical Measuring Instruments (IDEMI), Mumbai
13.Fragrance &Flavour Development Centre (FFDC), Kannauj.
14.Centre for the Development of Glass Industry (CDGI), Firozabad
15.Process & Product Development Centre (PPDC), Agra
16.Process cum Product Development Centre (PPDC), Meerut
17.Central Footwear Training Institute (CFTI), Agra
18.Central Footwear Training Institute (CFTI), Chennai
Out of this 18 Technology Centres (TCs), 10 TCs provide technological support to
industries through design & manufacture of tools, precision components, moulds,
dies, etc. These TCs also serve industry by providing skilled manpower in the areas of
tool engineering & manufacturing sector. These TCs are highly proficient in their
respective fields.
b. under Atmanirbhar bharat https://aatmanirbharbharat.mygov.in/
In line with Government of India’s top focus on energising MSMEs in the country,
The Ministry of MSME is focusing on all aspects, in addition to the existing credit
related schemes and other announcements, the following two announcements were
made under the Atmanirbhar Bharat Package to provide better access to finance for
MSMEs:

21. 21
- Government of India provide a support of Rs. 4,000 Cr. to Credit Guarantee
Trust for Micro and Small Enterprise. It make provisioning of Rs 20,000 crore
as subordinate debt to provide equity support to the stressed MSMEs.
- Credit Guarantee Scheme for Subordinate Debt (CGSSD) for Stressed
MSMEsü has been Finalized and Launched on 24th June, 2020. As on
31.12.2020 12 banks have been extended guarantees amounting of Rs. 17.66
crore to 178 borrowers. Rs 50,000 cr. Equity infusion for MSMEs through
Fund of Funds
- On 13th May 2020, Hon’ble Finance Minister announcement a Fund of Fund
for MSMEsü Scheme, this will infuse Rs. 50,000 crore for MSMEs as Equity
for MSME. This will establish a framework to help MSMEs in capacity
augmentation. This will also provide an opportunity for MSMEs to get listed in
stock exchanges. Ministry of MSME has approved and issued the Guidelines
on Self-reliant India (SRI) Fund scheme. NSIC Venture Capital Fund Ltd., a
subsidiary company of National Small Industry Corporation Ltd. (NSIC)
incorporated under Companies Act 2013. It has been identify as SPV for Fund
of Funds.
- SBI Cap Ventures Ltd and Khaitan and Company has been selected asü Fund
Manager/ Asset Management Company and Legal Advisor for SRI Fund
Ministry is taking further steps for operationalization of the fund of Funds. The
SRI Fund scheme is in initial stage of implementation.
These initiatives attracts investments as Debt as well as Equity and creating more
jobs in the MSME sector
c. MSME Samadhaan
https://samadhaan.msme.gov.in/MyMsme/MSEFC/MSEFC_Welcome.aspx
- Section 15-25 of the MSMED Act 2006 covers the provision for issue fo
delayed payment to MSEs by buyers
- In the event of delay of more than 45 MSEs can approach the MSE Faciliation
centre

22. 22
- u/s 16 of the act there shall levy compound interest of 3 times of bank rate
notified by RBI
- MSME Samadhaan online portal http://samadhaan.msme.gov.in/
- MSEs file delayed payment cases
- Under Atmanirbhar package a subport under SAMADHAAN to track delayed
payment to MSMEs from CPSEs
- Dues recovered as january 2021= more than 20 thousand crore
Description:
Section 15-24 of the micro, Small and Medium Enterprises Development (MSMED)
Act, 2006 deal with the issues relating to the Delayed Payments to Micro and Small
Enterprises (MSEs) by the buyers to the MSE supplier. In the case of delay in
payment beyond 45days, MSEs suppliers may approach the Micro and Small
Enterprises Facilitation Council(MSEFC) constituted under the Act in all State/UTs.
Under Section 16 of the MSMED Act, delayed payment to supplier units, attracts
compound interest with monthly interests at three times of the bank rate notified by
the Reserve Bank.
To further the objective of MSMED Act, 2006 Ministry of MSME launched a portal
on 30.10.2017. The portal gives information about individual CPSEs/Central
Ministries, State Governments etc. and other buyers regarding the payments pending
with them in respect of the MSEs. The Central Ministries/State Governments have
been provided with user- ID and password to login and monitor the delayed payment
cases in respect of organizations under their jurisdiction.
The said portal also facilitates MSEs to file their delayed payments related complaints
online. After 15 days of online filing of the case, it is registered by the MSEFC
concerned. The States like Punjab, Maharashtra, Telangana, Hyderabad & Odisha,
Tamilnadu, NCT of Delhi and U.P. have more than one MSEFC. M/o MSME also
provide funds to the National Institute for Micro, Small & Medium Enterprises (NI-
MSME), Hyderabad for organizing training for the members of MSEFCs of

23. 23
theState/UTs who deal with cases of delayed payment and acquaint them with
relatedrules and regulations on delayed payment to Micro & Small Enterprises.
d. MSME Sambandh https://sambandh.msme.gov.in/PPP_Index.aspx
- Launched on 8th
december 2017
- monitoring the procurement by Central Government Ministries, Departments
and Central Public Sector Enterprises (CPSEs) and also enables them to share
the list of required products/services from MSEs
description:
Ministry of MSME had launched “MSME-SAMBANDH Portal” on 8th December;
2017. The portal helps in monitoring the procurement by Central Government
Ministries, Departments and Central Public Sector Enterprises (CPSEs) and also
enables them to share the list of required products/services from MSEs.
The portal features, inter alia, the following: -
 Availability of updated and timely information on Public procurement, on
weekly/ monthly basis.
 Monitoring the procurement done by the Ministries/ Departments and CPSEs.
 Enabling CPSEs to upload list of products/services required. • Dashboard
providing summary of Procurement.
e. MSME Sampark http://sampark.msme.gov.in/
- Job portal by ministry
- Jobseekers= msme passed out trainees and student of msme technology centres
can register also recruiters
- As on january 2021 28019 jobs have been offered
Description:
A job portal called “MSME SAMPARK” has been launched by the Hon’ble President
ofIndia on 27.06.2018. This portal is a digital platform wherein jobseekers (i.e. passed
out trainees / students of MSME Technology Centres) and recruiters can register
themselves for mutually beneficial interaction.

24. 24
f. MSME CHAMPIONS https://champions.gov.in/Government-India/Ministry-
MSME-Portal-handholding/msme-problem-complaint-welcome.htm
- Full form Creation and Harmonious Application of Modern Processes for
Increasing the Output and National Strength
- Launched on 1st
june 2020
- In addition to helping MSMEs provide guidance to new business opportunities
- Control room set up in new delhi and 68 state level control rooms provide
support including finance, market access, technology upgradation, skill
development etc.
- Highlight of platform
i. Regularly update on recent development in MSME
ii. 56 banks/financila institutitiona/ regiional rural banks on boarded to
resolve queries of credit
iii. 52 CPSEs onboarded
iv. GeM onboarded
Description:
Creation and Harmonious Application of Modern Processes for Increasing the Output
and National Strength (CHAMPIONS) portal launched by Hon’ble Prime Minister on
1st June, 2020, is an ICT based technology system for making the smaller units big by
helping and handholding them. The portal is not only helping MSMEs in the present
situation, but also providing guidance to grab the new business opportunities.
g. The Government e-Marketplace https://gem.gov.in/
h. Online platform for markteing the product of MSMEs set up u/rule 149 of the
General Financial Rules, 2017
i. Run by government
j. Ministries and PSUs source their procurement
k. recorded transactions worth Rs. 55,048 crore (US$ 7.5 billion) [as on Sept
2020]
Description:

25. 25
Ministry of MSME is already making every attempt to encourage the MSMEs to get
themselves onboarded on the GeM Portal, even by providing a button for the MSMEs
in the Udyam Registration online form to enable them to express their willingness for
joining GeM. In recent past, bulk emails were sent to all Udyog Adhaar Memorandum
(UAM) holders for onboarding on GeM portal. The GeM has been provided access to
the UAM Database for provisional and automatic onboarding of all the MSMEs on the
GeM
some initiatives of GeM
l. https://gem.gov.in/initiatvie_and_events
m. POSHAN abhiyan
n. Swacch Bharat mission
o. Under world environment day
p. Womaniya
q. Ask GeMmy https://gem.gov.in/GeMmy a new chatbot
r. buisness cockpit- analyse what is trending
s. IT Professional services on nomination basis
https://mkp.gem.gov.in/services#!/browse/services_home_pr22455282_prof/open

26. 26
IV. WHY TO START MSME?
The foremost reason for anyone to think establishing an MSME is one word that is
“OPPORTUNITY”. An opportunity to provide products and services creating
sufficient surplus. While we have seen that many wannaprenuers have there brilliant
ideas but they simply cant execute it for one reason or another. Common amongst
them are
- “I don’t have time”
- “I don’t have money”
- “I don’t want to leave security of my job”
- “I am too busy with my family”
- “I simply don’t have skills and experience”
While you may be having any reason amongst them or you can come up with entirely
new excuse but let me tell you secreta to starting is
You simply “Start”
Things will happen only when you choose it to be happen. We human are gifted with
the ability to think and execute, then why not imply it in our growth. Although your
current job may be giving you stable financial security, certain facilities basically it
has its own perks, but you are not starting business only because you do want to loose
this perks then “COURAGE” is the solution. As anyone can do job but it only takes
Courage to step out of our comfort zone, take risk, build empire and creating
opportunities for 100s of people.
Now that you have decided to start let’s talk how to START:
The general step to start a business is with listing all the ideas you have in your ind. It
is one such crucial step that you cannot afford to give less attention to. It should be
noted that it is the purchasing power and growing consumerism that going to drive
your enterprise’s growth. Therefore it certainly becomes important to focus your
attention to recent trend and demand. You also have to conduct a little research of

27. 27
your own listing out the leading industries in the sector which you want to contribute,
some of such industries are – retail trade, food & beverages, buisness services, hotels
& restuarants, furniture manufacturing etc. The common strategy is to start with small
and slowly enlarge your capacity.
A.
To reduce your hussle here some of the small business ideas to give a thought to:
1. Breakfast Joint/Take-away
2. Juice Points/Shakes Counters
3. Cookery Classes
4. Ice cream Parlour
5. Catering
6. Tailoring/Embroidery
7. Boutique Store
8. Online Businesses
9. Blogging
10.Daycare Services
11.Dance Centre
12.Yoga instructor
13.Wedding Planner
14.Wedding Bureau
15.Travel Agency
16.Salon
17.Real Estate Agent
18.Real Estate Consultant
19.Business Consultancy
20.Coaching Classes
21.Placement Services
22.Handicrafts Seller
23.Professional Photography

28. 28
B.
Recognizing the present “virtual” need, starting an online business is certainly a smart
choice. List of some online business ideas you can start with your laptop are:
1. Start your own clothing line
2. Launch a dropshipping store
3. Sell your art online
4. Become a freelance writer, designer or developer
5. Teach an online course
6. Flip your thrift store finds
7. Publish your own book
8. Start a blog
9. Become a virtual assistant
10.Try your hand at being an influencer
11.Build apps and websites
12.Launch a podcast
13.Sign up for affiliate marketing
14.Curate subscription boxes
15.Develop a niche product
16.Create handmade goods
Take a market tour:
Now that you have decided your idea it is advisable to consult with expert with the
similar field take their experiences as learning and plan a strategy. It is equally
important to look out for the competition in the market, have a study of location where
the demand for your is more.
C.
Arrange the finances:

29. 29
If running an enterprise is equal to running an engine then finace is certainly a fuel to
that engine, you need to keep your business going, no business is exception to it. To
boost the confidence in budding entreprenuers the governemnt faciliates various loan
schemes which may be avail by small entreprenuers, few of them listed below:
1. MUDRA Loan under PMMY https://www.mudra.org.in/
The government has set up this scheme to provide finance to non-corporate, non-farm
small/micro enterprises. Mudra loans can be availed from private and public sector
banks, commercial banks, regional rural banks (RRBs), small finance banks and
corporate banks. Interested applicants can approach any of the above lending
institutions or apply online through the official website of MUDRA. MUDRA loans
are majorly used by small scale business and startups.
Features:
 Competitive Interest Rates from banks/NBFCs
 Loan Amount up to Rs. 10 lakh
 Repayment Tenure from 12 months to 5 years
 Collateral-free loans
 Nil Processing Fee
 Zero prepayment charges
 Concessional Interest Rates for Women Entrepreneurs
Eligibility:
 Minimum age of applicant should be 18 years and maximum 65 years
 Applicants with no past loan defaults
Non Corporate Small Business Segment (NCSB) comprising of individual, MSMEs,
proprietorship/enterprise firms in rural and urban areas can apply for the loan. Here
are some examples of NCSBs:
 Small manufacturing units

30. 30
 Service sector units
 Shopkeepers
 Fruits / vegetable vendors
 Truck operators
 Food-service units
 Repair shops
 Machine operators
 Small industries
 Artisans
 Food processors and others
Individuals, business owners and enterprises engaged in the manufacturing, trading
and services sectors are eligible to avail a MUDRA loan. Government loan for women
entrepreneurs can also be availed under Mudra Yojana. Below stated are the types and
loan amount offered under 3 loan schemes under Mudra loan:
Types of 3 Mudra loan schemes along with offered loan amount
 Shishu: Loan Scheme: Up to Rs. 50,000
 Kishor: Loan Scheme: From Rs. 50,000 and up to Rs. 5 lakh
 Tarun: Loan Scheme: From Rs. 5 lakh and up to Rs. 10 lakh
2. Stand-Up India https://www.standupmitra.in/
Governed by Small Industries Development Bank of India (SIDBI), Stand up
India was initiated to provide funding to people who come under SC/ST category and
women entrepreneurs. This scheme provides bank loans between Rs. 10 lakh and Rs.
1 crore to at least one SC/ST borrower and one woman borrower per bank branch.
Eligibility:
Enterprises in trading, manufacturing, or services sectors are considered eligible for
this scheme. In case of non-individual enterprises at least 51% of shareholding stake
should be with an SC/ST or woman entrepreneur.

31. 31
Interest Rate and Features:
 The rate of interest would be the lowest applicable rate – (Base Rate (MCLR))
+ 3% + Tenor Premium
 It offers composite loans between Rs. 10 lakh to Rs. 1 crore to cover 75% of
the project, inclusive of the term loan and working capital
 The specification of the loan being expected to cover 75% of the project cost. It
won’t be applicable if the borrower’s contribution along with convergence
support come from any other schemes exceeds 25% of the project cost
3. PSB/MSME Loans in 59 Minutes https://www.psbloansin59minutes.com/home
On Nov 5, 2018, our Prime Minister, unveiled a dedicated digital platform or web
portal named as psbloansin59minutes to enable loans of up to Rs. 5 crore in just 59
minutes for startup business and MSMEs. The government startup loans were
launched to provide financial assistance to the Micro, Small and Medium Enterprises
(MSMEs) throughout India. Some of the great features about this facility are:
 Rate of interest: The rate of interest offered under this scheme is 8.50%
onwards per annum
 Loan amount: The loan amount offered under this loan will be between Rs. 1
Lakh and maximum is up to Rs. 5 crore
 Fast access to financial assistance: Usually such loan processes take about 7-
10 working days to complete. However, the loan approval process takes in just
59 minutes
 Quick disbursal: After the loan gets approved in an hour, you can expect the
money to reach in your bank account in 7-8 working days
4. National Small Industries Corporation (NSIC) Subsidy https://www.nsic.co.in/
The government aids the small business under National Small Industries Corporation
Subsidy (NSICS) with a focus on two financial benefits: marketing assistance and raw
material assistance. Its benefits are as follows:

32. 32
Cost-free tenders: Under the marketing assistance program, the Small-Scale
Industries (SSIs) shall have access to the tenders without any costs.
No Security deposit requires: The SSIs (Small Scale Industries) are exempted from
paying a security deposit for availing finances.
Land and building financing: For the SSI units with the project cost not exceeding
Rs. 25 Lakh, the scheme provides a financial facility for land and building department.
Not every scheme initiated by the Government offers subsidy on loan for businesses.
5. SIDBI Make in India Soft Loan Fund for MSMEs (SMILE)
https://sidbi.in/en/products
Launched in 2015, SMILE is governed by Small Industries Development Bank of
India (SIDBI). The aim of this scheme is to provide soft loans, to meet the required
debt-equity ratio for the establishment of new MSMEs and also to enable the growth
for existing ones. The interest rate offered under SMILE Timely Working Capital
Assistance during COVID times scheme is 8.25% onwards.
Eligibility: All existing borrower accounts including under Credit Delivery
Arrangement with combined outstanding credit facilities up to ₹25 crore as on 29th
Feb 2020.
Loan Amount: Up to 20% of total outstanding loans with SIDBI up to Rs. 25 crore
with cap exposure of Rs. 5 crore.
6. Credit Guarantee Scheme (CGS) https://www.cgtmse.in/
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme was
launched by the Government to strengthen and facilitate the credit delivery system to
the MSME sector. Public, private, and foreign banks along with Regional Rural Banks
(RRBs) and the SBI with its associate banks are included into the lending institutions
under this scheme.

33. 33
Eligibility:
New and existing MSMEs engaged in manufacturing or service activities, excluding
retail trade, educational institutions, agriculture, Self-Help Groups (SHGs), training
institutions are eligible for this scheme.
Features:
 This MSME scheme for entrepreneurs includes term loans and/or working
capital loan facility up to Rs. 2 crore, per borrowing unit
 The guarantee cover provided is up to 75% of the credit facility up to Rs. 1.5
crore
 85% of credit facility for loans up to Rs. 5 Lakh is provided to micro-
enterprises
 80% of credit facility for MSMEs owned/operated by women and all loans to
North Eastern Region, including Sikkim
 For MSME Retail trade, the guarantee cover is 50% of the amount in default
subject to a maximum of Rs. 50 Lakh
Our government is doing best to boost the MSME ecosystem & promoting the
entreprenuership, if you are planning to start a buisness or already have a startup get it
registered under the MSME and be eligible to wide range of benefits that includes
finance, market access, export facility, upgrading quality and technology and many
more.
D.
MSME Registration
It is not enough that the enterprises should fit into criteria of the classification to be
recognised as MSMEs. A compulsory registration is required in order to avail benefits
provided and initiated by government.
MSME Registration process new registration portal
www.udyamregistration.gov.in

34. 34
The registration of MSME is complete online process available on the registration
portal maintained by the ministry. An enterpirse intending to established or recognised
as micro, small, and medium enterprise have to file for Udyam Registration online on
the Udyam Registration portal www.udyamregistration.gov.in.
The Registration based on self-declaration that requires no documents, papers,
certificates or proof. Upon registration a Permanent Identity Number to be known as
“Udyam Registration Number”. Subsequent to that the “Udyam Registration
Certificate” shall be issued
 Significant detail new entreprenuer should know
- Form of registration application available only at Udyam Registration portal.
- The registration is completely free
- Aadhaar number is necessary of
a. Proprietor in case of proprietorship
b. Managing partner in case of partnership
c. Of karta in case of HUF
d. The authorised signatory shall provide its GSTIN and
PAN along with its Aadhaar number in case of
company/LLP/Cooperative
society/Society/Trust/Organisation
Registration of existing MSMEs
- Reregistration on Udyam Registration portal for all existing enterprises
registered under EM±Part-II or UAM on or after the 1st day of July, 2020.
- Reclassifcation of all enterprises registered till 30th June, 2020 as per the
present classification
- Registration of existing enterprisses prior to 30th
june 2020 be valid only till 31st
march 2021
- An enterprise registered with any other organisation under the Ministry of
Micro, Small and Medium Enterprises shall register itself under Udyam
Registration

35. 35
Benefits available under the MSMED Act, 2006:
The list of benefits that can be avail by the Micro and Small enterprises subsequent to
registration are as below:
a. The Protection against delayed payments by buyers of goods/services (Section
15 of the MSMED Act) and right to interest for delayed payments (Section 16
of the MSMED Act) [chapter 8]
b. Time-bound settlement of payment-related disputes with buyers of goods or
services through conciliation and arbitration (Sections 18 to 21 of the MSMED
Act)
c. Central Government measures for promotion and development (section 9 of the
MSMED Act)
d. RBIs credit policies for ensuring timely and smooth flow of credit (section 9 of
the MSMED Act)
e. Preference policies (preference to micro enterprises in respect of goods and
services procured by Government Departments/aided institutions/ PSEs)
notified by Central/State Government (Section 11 of the MSMED Act)
 Purchase Preference policies (section 11 of the MSMED Act)

36. 36
V. RECENT UPATES ON MSME
i. In April 2021, the non-banking finance companies (NBFCs) requested the
Reserve Bank of India to extend the one-time restructuring scheme of MSME
advances till March 31, 2022, as these players are unable to revive their
businesses.
https://rbidocs.rbi.org.in/rdocs/notification/PDFs/RF20ISB770F1515A4424588B2
FD0780898E27BC.PDF
ii. The Technology Centre Systems Program (TCSP)
 In March 2021, the Ministry of MSME, through the Development
Commissioner (DC-MSME) implemented the Technology Centre Systems
Program (TCSP) to establish 15 new Technology Centres (TC). The centres
provide assistance to the industry predominantly MSMEs in General
Engineering, Automotive, Fragrance & Flavour and ESDM sectors.
- Fund amount and source = estimated 220 Crore from the World Bank
- World bank approve $500 million India’s program of strengthening MSME
https://www.worldbank.org/en/news/press-release/2021/06/04/world-bank-
approves-500-million-program-to-strengthen-performance-of-micro-small-and-
medium-enterprises-in-india
iii. In March 2021, the Finance Ministry allowed private retirement funds to invest
up to 5% in Category I & II AIFs regulated by SEBI; this will help widen the
fundraising options for MSMEs and expand the domestic pool of capital. [AIF =
Alternative Investment Fund]
- Category 1 AIFs consists of infrastructure, venture capital, angel and social
venture funds.
- Category II AIFs covers funds where at least 51% of the size can be invested in
either infrastructure, SMEs, venture capital or social welfare entities

37. 37
iv. In March 2021, MSME support and development organisation, National Small
Industries Corporation (NSIC) announced that they will assist MSMEs working
with the Agricultural and Processed Food Products Export Development
Authority (APEDA) across multiple areas
v. Collaboration of NSIC and APEDA
- The Agricultural and Processed Food Products Export Development Authority
(APEDA) under the Agricultural and Processed Food Products Export
Development Authority Act 1985.
- The NSIC, through an MoU with APEDA, will help its MSME members in
exploring the export potential of their agricultural and processed foods
products.
- Additionally, APEDA members will get access to NSIC schemes, which would
help them address issues pertaining to technology adoption, skills, product
quality, and market access
- The relationship will also support promotion of green & sustainable
manufacturing technology for MSME clusters, enabling units to switch to
sustainable and green production processes and products
vi. Walmart’s Vriddhi programme https://www.walmartvriddhi.org/ a training
program helping MSMEs modernizing, meeting national and international goals
- In February 2021, programme extended to Uttar Pradesh, with launch of an e-
institute to facilitate small businesses in granting access to skills and
competencies across online and offline platforms such as Flipkart's marketplace
and Walmart's global supply chain.
- The company stated that this new e-institute will benefit 50,000 MSMEs across
the country to expand domestically and globally.
vii. Partnership with Mastercard and Razorpay
- In February 2021, signed a partnership to help small businesses and
entrepreneurs in India embrace digital payments.

38. 38
- The partnership integrates Razorpay's payment processing capabilities with
Mastercard's digital banking platforms and card services.
viii. Bank of Maharashtra collaborated with Vayana Network, a supply chain
financing (SCF) platform
- In February 2021, to provide financial assistance to the MSME market.
- Through this partnership, the bank will provide short-term credit to address the
budget needs of legitimate corporate dealers/vendors through the bank's
‘Mahabank Channel Financing Scheme’ and Vayana Network's expertise.
ix. Indian Bank collaboration with the Society for Innovation and
Development (SID) in february 2021
- The Society for Innovation and Development (SID), a project of the Indian
Institute of Science
- Purpose: to provide exclusive credit to start-ups and MSMEs
x. Small Industries Development Bank of India (SIDBI) agreement with state
of Andhra Pradesh
- Purpose of SIDBI to the promotion, financing, and development of micro,
small, and medium enterprises (MSMEs)
 Purpose of agreement: to help expand the state's MSME

39. 39
VI. OPPORTUNITIES FOR PROFESSIONALS IN MSMEs: The
Professionals can provide Advisory services to MSMEs
1. Legal setting up of MSMEs (i.e. getting registration for startup,
PAN, TAN, MSME etc.).
2. Selection of Organization Structure for MSME (Sole Proprietorship,
Company, Partnership, LLP, OPC etc.).
3. Labour Law aspects of MSMEs.
4. Listing of MSMEs.
5. Taxation aspects of MSMEs.
6. Legal and Regulatory Compliances.
7. Financial advisory services for MSMEs.
8. Corporate Governance for MSMEs.
9. Signing of Annual Returns of the Company.
10. Maintaining Statutory Registers.
11. Act as Legal advisor and Representative.
12. Handling matters of GST, Labour laws and Corporate Laws.
13. Conducting Secretarial Audit or Due diligence before seeking for
the funds.
14. Handling matters relating to conversion of Sole proprietorship or
Partnership to Companies or any other form of business entities.
15. Issuing Compliance Certificate to ensure compliance of various
regulatory prescriptions in case of listing in MSME Exchange.
16. Handling matters of Public issue.
17. Preparation of detailed project report.
18. Providing services related to Custom Development Scheme and
Export Promotion Scheme.
19. Guidance by Professionals to small and medium enterprises with
regard to credit facility of 2% as interest subsidy through SIDBI.
20. Professionals help the organizations in availing the benefits of the
MSME policies of central and state government.

40. 40
VII. HOW MICRO AND SMALL ENTREPRENUER CAN INCREASE
SALE?
Even though the micro and small enterprises comprises largest portion of the MSME
Sector the factors such lack of technological advancement, inadequate access to
market platforms restricted the growth potential of MSEs. This very reason prompted
the government to come up with various initiatives to improve market access and
competitiveness for such Micro and Small enterprises. Subsequently, the procurement
mechanism was initiated through the enactment of the Public Procurement Policy for
Micro and Small Enterprises (MSEs) Order, 2012 effective from 1st
April 2012.
The policy obligated the Central Ministries /Departments and Central Public Sector
Enterprises (CPSEs) for annual procurement from the enterprises belonging to the
MSEs. The said policy was later amended vide gazette notification dated 9th
November 2018.
A. The Public Procurement Policy for Micro and Small Enterprises (MSEs)
Order, 2018
The Policy:
 Public Procurement Policy for MSEs Order, 2018 has been notified under
section 11 of MSMED Act, 2006.
 The Policy is effective from 1st April 2019 (Gazette notification on 9
November 2018).
 The objective of Policy is promotion and development of Micro and Small
Enterprises by supporting them in marketing of products produced and services
rendered by them. However, the policy rests upon core principle of
competitiveness, adhering to sound procurement practices and execution of
supplies in accordance with a system which is fair, equitable, transparent,
competitive and cost effective.

41. 41
How the procurement policy is beneficial for budding MSEs?
Effect of policy:
since the policy (as amended in 2018) mandates 25 % of annual procurement by
Central Ministries/Departments/Public Sector Enterprises (CPSEs) which include 4%
from MSEs owned by SC/ST and 3% from MSEs owned by Women entrepreneurs
(Paragraph 4-4A).
It certainly enhances the participation of such MSEs and opened the doors of
opportunities.
 Definition of MSEs owned by SC/ST:
a. In the case of proprietary MSE, the proprietor(s) shall be Sc/St.
b. In the case of partnership MSE, the Sc/St partners shall be held at least 51%
shares in the unit.
C. In the case of Private Limited Companies, at least a 51% share shall be held
by Sc/St promoters.
 Definition of MSEs owned Women Entrepreneurs:
The MSEs owned and controlled by a woman having a minimum financial
interest of 51 percent of the capital and giving at least 51 percent of the
employment generated in the enterprise to women.
 Reserved Items: In addition to the mandatory procurement the policy contains
a list of 358 items that are reserved for the exclusive procurement from MSEs.
The list includes A-Z items from clothing, electronics tools to wooden items
the same is available at
http://www.dcmsme.gov.in/schemes/listof358itemsreserved.pdf This feature
provides immense scope for budding entrepreneurs looking for entering the
MSE world.
 Who are buyers?
Every central ministry/department and central public sector undertaking has an
annual target of 25% of annual procurement out of a sub-target of 4% and 3%
of procurement target from MSEs owned by Sc/St and Women Entrepreneurs

42. 42
respectively. There are a total of 51 Ministries in the country and 67 central
departments, and 348 CPSEs so far. This signifies a sufficient no. of buyers.
 Who are sellers?
All MSEs satisfying the criteria as per revised definition and the same been
registered under the online registration portal namely Udyam Registration
Portal maintained by the ministry can avail the benefit of the policy.
MSME- SAMBANDH
For the effective implementation of procurement policy, the ministry has launched an
online portal named MSME- Sambandh
https://sambandh.msme.gov.in/PPP_Index.aspx into effect since 8th March 2017. The
portal is responsible for the monitoring of the procurement by concerned Ministries
and central departments and PSEs. The portal has been very active in terms of timely
update procurement information on a weekly /monthly basis. In addition to the same,
the portal publishes the list of products/services to be required by MSEs.
Certainly, the platform creates easy access for the eligible entities to the t information
regarding products and services in demand. Since the CPSEs are mandatorily required
to disclose their procurement details, it helps the budding MSEs to figure the items in
demand.
The data published through the portal suggested that a total of 167762 MSEs benefited
in FY 2020-21 out of which 6790 and 4935 were comprised by Sc/St owned MSEs
and women lead MSEs respectively. The public procurement status for the said year
showed hierarchical ministry-wise procurement in which the ministry of agriculture
tops followed by the M/o AYUSH, M/o chemicals & Fertilizers, M/o Civil Aviation,
M/o coal & M/o commerce and industry, etc.
Another portal of MSME ministry:
With an intent to provide handholding support to MSMEs and informing them about
business opportunities, a grievance portal named CHAMPIONS stands for Creation
and Harmonious Application of Modern Processes for Increasing the Output and
National Strength created on 1st
May 2020. The platform with its ease of access helps

43. 43
to solve all possible queries raised by stakeholders, with almost 750 FAQs provided
by the portal to help better understanding of scheme available to the potential user.
The problem of delayed payment is sufficiently attempted to resolve through an online
portal maintained by the ministry namely MSME SAMADHAAN- Delayed Payment
Monitoring System
https://samadhaan.msme.gov.in/MyMsme/MSEFC/MSEFC_Welcome.aspx created
on 30th
October 2017, where a complaint of delay payment more than 45 days may be
initiated by MSEs before the MSEs Facilitation Council. The address of the
Facilitation council is available at
https://samadhaan.msme.gov.in/MyMsme/MSEFC/CouncilAddress.aspx
Additionally, a sub portal created within SAMADHAAN tracks the delayed payment
status to MSMEs from CPSEs the movie has achieved the desired object of
accelerating the timely payment and as per ministries annual report 2020-21 total
26,000 Crore dues recovered from CPSEs. In addition, boosting entrepreneurship
MSME is certainly committed to boosting employment on that note a digital platform
named MSME SAMPARK was created on 27th
June 2018 to provide an opportunity
for the potential job seekers who are generally passed out trainees or students of
MSME technology centres. The registered recruiters on the portal publish vacancies
for a job that be availed by the desired candidates.
 Encouragement through another e-commerce site:
The government is certainly encouraging the MSMEs to avail the benefit of the
online market platform maintained by it namely the Government e-Marketplace
https://gem.gov.in/
This portal faciliate an online procurement of goods/services by the
Government Organisations / Departments / PSUs.
Features of GeM portal:
1. Drive business with ease
2. Direct access to largest buyers in the country

44. 44
3. Direct purchase, Bids, and reverse auction
4. Transparency and security
5. Demand forecasting
How to avail of the benefit of GeM?
As an effort to get the potential MSMEs registered on GeM the facility button is
provided on the Udyam Registration Form, to enable the entities to positively be a part
of GeM sellers.
The potential sellers need a vendor registration on the portal based on self-
certification. It required a document of identification proof, primarily Adhaar. The
basic requirement in nutshell is:
1. Constitution Type such as Proprietorship, Firm, Company, Trust or Society and
Central Government/State Government.
2. Constitution Name.
3. Aadhaar Number or Personal PAN of the user(Authorized signatory of ITR)
4. For Aadhaar based registrations, a mobile number that is linked with the
Aadhaar is required.
5. Documents such as CIN, PAN, DIPP, UAM, ITR details as per the constitution
of the organization may be required for seller registration.
6. Address of the organization.
7. Bank account details of the organization
8. Active email id.
It should be noted that Adhaar is no longer mandatory for seller registration and they
have an option to use Personal PAN for Identity Verification while doing the seller
registration. For sellers registering in MSE capacity, the portal provides an option to
select an organisation as an MSE, subsequently, the MSE has to provide the Udyam
Registration number and the mobile number or Aadhaar number linked with such
registration.
How MSEs benefitted from GeM?

45. 45
Since the government is required to mandatorily procure by the MSEs as per the
policy, the registered MSEs on GeM certainly add up to their sales. The data suggest
that presently there are 6,95,432 MSEs registered on GeM contributing 56% of the
total order value on GeM
Womaniya – an initiative by GeM: The GeM portal is very active with certain
initiatives exclusively focus on the development of MSEs of one such initiative is
Womaniya https://uat.gemorion.org/page/detail/27 , it is aligned with the government
efforts of boosting women entrepreneurship by obligating 3% procurement by
government bodies. The initiative facilitates women created products such as
handicrafts and handloom, accessories, jute and coir products, bamboo products,
organic foods, spices, home décor and office.
The Saras Collection:
It is yet another initiative led by GeM which facilitates procurement of products
particularly handcrafted collection of handicrafts, handloom textiles, office décor,
furnishings, accessories, event souvenirs, personal hygiene and care products. It
ensures active participation through women entrepreneurs and micro-enterprises.

46. 46
VIII. GOVERNMENT SCHEME AVAILABLE FOR MSME SECTOR:
A. PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME
(PMEGP)
https://msme.gov.in/sites/default/files/PMEGP%20guidelinesfinal.pdf
The Government of India has approved the introduction of a new credit linked subsidy
programme called Prime Minister’s Employment Generation Programme (PMEGP)
by merging the two schemes that were in operation till 31.03.2008 namely
1. Prime Minister’s Rojgar Yojana (PMRY) and
2. Rural Employment Generation Programme (REGP)
for generation of employment opportunities through establishment of micro
enterprises in rural as well as urban areas. It is a central sector scheme to be
administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).
The Scheme will be implemented by Khadi and Village Industries Commission
(KVIC), a statutory organization under the administrative control of the Ministry of
MSME as the single nodal agency at the National level. At the State level, the Scheme
will be implemented through State KVIC Directorates, State Khadi and Village
Industries Boards (KVIBs) and District Industries Centres (DICs) and banks. The
Government subsidy under the scheme will be routed by KVIC through the identified
Banks for eventual distribution to the beneficiaries/entrepreneurs in their Bank
accounts. The Implementing Agencies, namely KVIC, KVIBs and DICs will associate
reputed Non-Government Organization (NGOs)/reputed autonomous institutions/Self
Help Groups (SHGs)/ National Small Industries Corporation (NSIC)/Udyami Mitras
empanelled under Rajiv Gandhi Udyami Mitra Yojana (RGUMY), Panchayati Raj
institutions and other relevant bodies in the implementation of the Scheme, especially
in the area of identification of beneficiaries, of area specific viable projects, and
providing training in entrepreneurship development.

47. 47
Quantum and Nature of Financial Assistance
Categories of
beneficiaries under
PMEGP
Beneficiary’s
contribution (of
project cost)
Rate of Subsidy (of project cost)
Area (location of
project/unit)
Urban Rural
General Category 10% 15% 25%
Special (including SC
/ ST / OBC
/Minorities/Women,
Ex-servicemen,
Physically
handicapped, NER,
Hill and Border areas
etc
05% 25% 35%
Eligibility Conditions of Beneficiaries
(i) Any individual, above 18 years of age
(ii) There will be no income ceiling for assistance for setting up projects under
PMEGP.
(iii) For setting up of project costing above Rs.10 lakh in the manufacturing
sector and above Rs. 5 lakh in the business /service sector, the beneficiaries
should possess at least VIII standard pass educational qualification.
(iv) Assistance under the Scheme is available only for new projects sanctioned
specifically under the PMEGP.
(v) Self Help Groups (including those belonging to BPL provided that they
have not availed benefits under any other Scheme) are also eligible for
assistance under PMEGP.
(vi) Institutions registered under Societies Registration Act,1860;

48. 48
(vii) Production Co-operative Societies, and
(viii) Charitable Trusts.
(ix) Existing Units (under PMRY, REGP or any other scheme of Government of
India or State Government) and the units that have already availed
Government Subsidy under any other scheme of Government of India or
State Government are not eligible.
Financial Institutions
(i) 27 Public Sector Banks.
(ii) All Regional Rural Banks.
(iii) Co-operative Banks approved by State Level Task Force Committee headed
by Principal Secretary (Industries)/Commissioner (Industries)
(iv) Private Sector Scheduled Commercial Banks approved by State Level Task
Force Committee headed by Principal Secretary (Industries)/Commissioner
(Industries).
(v) Small Industries Development Bank of India (SIDBI).
B. PERFORMANCE AND CREDIT RATING SCHEME
https://msme.gov.in/sites/default/files/PCR_EN.pdf
The main objective of the scheme is to provide a trusted third party opinion on the
capabilities and creditworthiness of the Micro & Small Enterprises (MSEs) so as to
create awareness amongst MSEs about the strengths and weakness of their existing
operations. This is to provide them an opportunity to improve & enhance their
organizational strengths and credit worthiness, so that they can access credit at
cheaper rates and on easy terms
i. NSIC is the nodal agency for implementing the scheme of performance and
credit rating for Micro & Small Enterprises through its various
branches/offices located in the country.
ii. The unit’s rating is a combination of performance and credit worthiness of
the unit. The MSEs rating methodology is covering a combination of credit

49. 49
and performance factors including parameters measuring operational,
financial, business and management risks.
iii. NSIC is maintaining a database about the units awarded Rating by different
Rating Agencies.
iv. Micro & Small Enterprise is at liberty to select any of the rating agencies
empanelled under the rating scheme with NSIC.
v. The rating process is being undertaken in the following manner:
a. Request for Rating from MSE.
b. Collection of Information from the MSE.
c. Onsite meeting with MSE Management.
d. Analysis of Information obtained from the MSE.
e. Assign Rating.
vi. The validity of a rating is for a period of one year from the date of issue of
the rating letter
C. CREDIT GUARANTEE TRUST FUND FOR MICRO & SMALL
ENTERPRISES (CGTMSE) https://www.cgtmse.in/
Availability of bank credit without the hassles of collaterals / third party guarantees
would be a major source of support to the first generation entrepreneurs to realise their
dream of setting up a unit of their own Micro and Small Enterprise (MSE). Keeping
this objective in view, Ministry of Micro, Small & Medium Enterprises (MSME),
Government of India launched Credit Guarantee Scheme (CGS) so as to strengthen
credit delivery system and facilitate flow of credit to the MSE sector. To
operationalise the scheme, Government of India and SIDBI set up the Credit
Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
Category Maximum extent of guarantee where credit facility is
Upto 5 lakh Above 5 lakh
up to 50 lakh
Above 50 lakh
up to 200 lakh
Micro enterprise 85% of the amount in default
subject to a maximum of 4.25
75% of the
amount in
75% of the
amount in

50. 50
lakh default subject
to a maximum
of 37.50 lakh
default subject
to a maximum
of 150 lakh
Women
entrepreneurs/
Units located in
North East
Region (incl.
Sikkim) (other
than credit facility
upto 5 lakh to
micro enterprises)
80% of the amount in default subject to a
maximum of 40 lakh
All other category
of borrowers
75% of the amount in default subject to a
maximum of 37.50 lakh
Activity From 10 lakh upto 100 lakh
MSE Retail Trade 50% of the amount in default subject to a maximum of 50 lakh
Borrowers under the scheme:
New and existing Micro and Small Enterprises engaged in manufacturing or service
activity excluding Educational Institutions, Agriculture, Self Help Groups (SHGs),
Training Institutions etc.
Eligible lending institution under the scheme:
 All Scheduled Commercial Banks (either PSU, Private or Foreign Banks),
 selected Regional Rural Banks,
 selected state financial corporations ,
 NBFCs, Small Finance Banks (SFBs) or such of those institutions as may be
directed by GOI can avail of guarantee cover in respect of their eligible credit
facilities under the Scheme.

51. 51
 Small Industries Development Bank of India (SIDBI),
 National Small Industries Corporation Ltd. (NSIC) and
 North Eastern Development Finance Corporation Ltd. (NEDFi) have been
included as eligible institutions.
D. INTEREST SUBSIDY ELIGIBILITY CERTIFICATE (ISEC)
https://msme.gov.in/sites/default/files/ISEC-Guideline.pdf
The Interest Subsidy Eligibility Certificate (ISEC) Scheme is an important mechanism
of funding khadi programme undertaken by khadi institutions. It was introduced to
mobilise funds from banking institutions for filling the gap between the actual fund
requirements and availability of funds from budgetary sources.
Scheme Benefits & Highlights
 Under the ISEC Scheme, credit at a concessional rate of interest of 4% per
annum for working capital, is made available as per the requirement of the
institutions. The difference between the actual lending rate and 4% is paid by
the Central Government through KVIC to the lending banks.
 While approving continuation of the scheme for implementation during XII
plan period, Govt. of India has approved an unified version of the scheme for
Khadi and Ployvastra to facilitate seamless release of interest subsidy to the
institutions.
Eligibility:
The Khadi institutions, having valid Khadi certificate and sanctioned khadi
programme.The Institutions registered with the KVIC/State Khadi and Village
Industries Boards (KVIBs) can avail of financing under the ISEC Scheme, the Scheme
supports only the khadi and the polyvastra sector.
Registration Process

52. 52
The Khadi institutions will apply to the financing bank for working capital alongwith
the ISEC certificate issued by KVIC. Based on the working capital sanctioned,
financing bank will raise the reimbursement claim to the nodal branch for the
differential interest rate over and above 4%.
For detailed process and guidelines and certificate form click
here: http://www.kvic.org.in/kvicres/update/circulars/ISEC%20Guideline.pdf
E. SCIENCE AND TECHNOLOGY SCHEME
Technology Transfer, Incubation, Testing, Training Entrepreneurs and Service
Facilities for the coir MSMEs through extension of the outcomes of research (done at
research institutes under the scheme) at the laboratory level for application at the field
level and extension of testing and service facility are the objectives of the scheme. The
Research and Development activities of the Board are carried out through the twin
research institutes: the Central Coir Research Institute, Kalavoor and Central Institute
of Coir Technology, Bangalore who uses the fund alloted to this scheme and then
further aid the entities working in the coir industry.The scheme also aims at
establishing technology incubation centers in one or many places for training the
entrepreneurs in the new technologies developed and transferred.
Scheme Benefits & Highlights
The outcome of the research can be availed at the field level by approaching Research
Centre for availing assistance in Technology Transfer, Incubation, Testing and Service
Facilities of the research institutes (The Central Coir Research Institute, Kalavoor and
Central Institute of Coir Technology, Bangalore)
Some indirect and secondary benefits of the scheme are as follow:
 Continued implementation of the Scheme will result in development of new
technologies for reducing drudgery and improving the quality and productivity

53. 53
of the coir products. Continued research activities will result in increasing the
acceptance of the coir products both by internal and external markets.
 The development of more sophisticated machinery with the features of
automation will result in enhanced productivity and income. Elimination of
physical strain and better income would attract younger generation to engage
themselves into coir activities.
 The use of coir products for environment friendly activities will result in
environment protection.
 Development of new value added products and identification of new areas for
application of coir will result in the generation of more national income from a
waste material.
Eligibility
All coir production/processing units newly established will be eligible to apply for
assistance. All coir production/ processing units registered with Coir Board under Coir
Industry (Registration) Rules, 2008 and having Udyog Aadhar are eligible to apply for
financial assistance for modernisation under this scheme.
Registration Process
The application with all relevant documents shall be filed online or check with the
concerned research institute.
For more details:
https://msme.gov.in/sites/default/files/Revised_Operation_Guidelines_of_CVY.pdf
F. Market Promotion & Development Scheme (MPDA)
The Market Promotion and Development Assistance Scheme (MPDA) has been
launched as a unified scheme by merging different schemes implemented by the
Khadi sector including publicity, marketing, market promotion and marketing
development assistance. Further, grant/subsidy will also be available for construction

54. 54
of Khadi plazas. The overall objective of the scheme is to ensure increased earnings
for artisans.
Eligibility:
The Khadi institutions, having valid Khadi certificate and categorised as A+,A,B and
C only are eligible to avail MMDA grant from KVIC.
Assistance:
Modified MDA (MMDA) shall be allowed @ 30% on the Prime cost of Khadi
(cotton, silk, woollen) and Polyvastra
G. REVAMPED SCHEME OF FUND FOR REGENERATION OF
TRADITIONAL INDUSTRIES (SFURTI)
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

55. 55
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.
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).
Eligibility:
 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

56. 56
 similar agencies, with suitable expertise to undertake cluster development.
H. COIR VIKAS YOJANA
The interventions under CVY Scheme envisage a wide range of activities like skill
development of artisans, mahila coir yojana, for modernization, upgradation and/or
establishing a new unit under Coir Industry Technology Upgradation Scheme
(CITUS), promoting the domestic as well as export market, providing of trade and
industry related functional support services, and welfare of coir workers.
I. Coir industry technology upgradation scheme:
A new component namely “Coir Industry Technology Upgradation Scheme (CITUS)”
has been introduced replacing the earlier component i.e. “Development of Production
Infrastructure” of Coir Vikas Yojana for giving away assistance to the entrepreneurs
for procurement of eligible Plant & Machinery for modernization, upgradation and/or
establishing a new unit on making application for the purpose to go for larger
investment in the coir sector. The financial assistance shall be 25% of the cost of
admissible items of Plant and Machinery procured by the Coir units. The upper ceiling
of the financial assistance will be Rs.2.50 crores per coir unit/ project.
Financial assistance:
The financial assistance shall be 25% of the cost of admissible items of Plant and
Machinery procured by the Coir units for modernization, upgradation and/or
establishing a new unit. The upper ceiling of the financial assistance will be Rs.2.50
crores per coir unit/ project.
How to apply?
All coir production/processing units newly established will be eligible to apply for
assistance. All coir production/ processing units registered with Coir Board under Coir
Industry (Registration) Rules, 2008 and having Udyog Aadhar are eligible to apply for
financial assistance for modernisation under this scheme.

57. 57
J. Skill upgradation and mahila coir yojana
Skill Upgradation & Mahila Coir Yojana (MCY) is one of the key components under
the Scheme Coir Vikas Yojana. Coir Board imparts training in processing of coir and
value addition to potential workers, coir artisans/entreprenuers through its training
centres, i.e., National Coir Training and Design Centre (NCT&DC), Kalavoor,
Alleppey and Research-cum-Extension Centre, Thanjavur, and Field Training Centres
of Regional Officers/ Sub Regional Officers of the Board located at various parts of
the country. The Mahila Coir Yojana (MCY) is intended to provide self employment
opportunities to rural women artisans in regions processing coconut husk.
The stipend per trainee for the skill development programmes will be limited to
Rs.3,000/- per month and in the case of training programmes of less than one month
duration, stipend will be disbursed on prorata basis. The honorarium for the trainer
will be limited to Rs. 15.000/- per month. An amount of Rs.400/- per head per month
will be provided as financial assistance to the training sponsoring agency to meet the
operational cost of the training for raw material, power charges, other incidentals etc
How to apply?
Coir artisans and workers engaged in the coir industry may avail of the financial
assistance for procurement of machines/equipments under PMEGP scheme for setting
up of new coir units for which the maximum project cost is Rs.25 lakhs.
K. Export market promotion:
Coir Board is implementing Export Market Promotion with a view to improve the
export performance of Indian Coir Sector through various export market promotion
activities such as sponsoring delegations; participation in seminars and conferences;
organising participation in international fairs; undertaking generic publicity abroad;
extending financial assistance to Micro, Small and Medium Enterprises and Exporters;
presenting Coir Industry Awards on an annual basis to recognize the outstanding
performance in the areas of export; domestic trade; R&D and functioning of units and
societies.

58. 58
Assistance:
1. Delegation, Consultancy & Information Sourcing
2. Participation in seminars and conferences
3. Participation in international fairs/buyer-seller meets
4. Publicity abroad
5. External Market Development Assistance
6. Coir Industry Awards.
The assistance shall be provided as per revised guidelines of International Cooperation
Scheme (IC Scheme) issued on 15.06.2018. The guidelines may be downloaded from
the website https://msme.gov.in/marketing-promotion-schemes
Who can apply?
Manufacturers, Entrepreneurs and Exporters of Coir
L. Pradhan mantri surkasha bima yojana:
Coir Board had been implementing Coir Board Coir Workers Group Personal
Accident Insurance Scheme for the benefit of the coir workers in the country. The
scheme started from the year 1998 was aimed at providing insurance coverage against
accidental death, permanent total disability and permanent partial disability to the coir
workers. The coir workers aged 18 and above engaged in the industry were covered
under the scheme. The insurance coverage was given on the basis of a comprehensive
policy covering 4 lakh coir workers without naming each and every worker. The
scheme titled "Coir Board Coir Workers Group Personal Accident Insurance Scheme"
which was in operation up to 31.05.2016 has been converged to "Pradhan Mantri
Suraksha Bima Yojana"(PMSBY) with effect from 01.06.2016.
Eligibility:
The coir workers to be enrolled through Coir Board may be self-employed, employed
under the SFURTI coir clusters, coir workers engaged in the units already registered
with the Board, coir workers coming under the fold of Welfare Fund Board, PSUs,
Corporations, Federations, Cooperative Societies, etc.

59. 59
M.FINANCIAL SUPPORT TO MSMES IN ZED CERTIFICATION
SCHEME
The objectives of the scheme include inculcating Zero Defect & Zero Effect practices
in manufacturing processes, ensure continuous improvement and supporting the Make
in India initiative.
The ZED Certification scheme is an extensive drive to create proper awareness in
MSMEs about ZED manufacturing and motivate them for assessment of their
enterprise for ZED and support them. After ZED assessment, MSMEs can reduce
wastages substantially, increase productivity, expand their market as IOPs, become
vendors to CPSUs, have more IPRs, develop new products and processes etc.
The scheme envisages promotion of Zero Defect and Zero Effect (ZED)
manufacturing amongst MSMEs and ZED Assessment for their certification so as to:
Develop an Ecosystem for Zero Defect Manufacturing in MSMEs.
Promote adaptation of Quality tools/systems and Energy Efficient manufacturing.
Enable MSMEs for manufacturing of quality products.
Encourage MSMEs to constantly upgrade their quality standards in products and
processes.
Drive manufacturing with adoption of Zero Defect production processes and without
impacting the environment.
Support ‘Make in India’ campaign.
Develop professionals in the area of ZED manufacturing and certification.

60. 60
Nature of assistance:
Assessment & Rating/Re-rating/Gap analysis/Hand holding
The subsidy provided by the Government of India for Micro, Small & Medium
Enterprises will be 80%, 60% and 50% respectively. There shall be an additional
subsidy of 5% for MSMEs owned SC/ST/women and MSMEs located in NER and
J&K for assessment & rating/re-rating/gap analysis/hand holding:
a) Assessment/Rating by empanelled Credit Rating Agencies/other Agencies valid for
4 years (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of
Medium Enterprises' Certification Fee: average 70% of Fee) (Assessment Fee Rs.
10,000/-& Rs 80,000/- per enterprise respectively for Desktop Assessment and ZED
rating Complete Assessment).
b) Additional rating for Defence angle i.e. Defence ZED by empanelled Credit Rating
Agencies/other Agencies valid for 4 years (Ministry of MSME will subsidize* 80% of
Micro, 60% of Small, 50% of Medium Enterprises' Certification Fee: average 70% of
Fee) (Assessment Fee Rs. 40,000/- per enterprise.)
c) Gap Analysis, Handholding, Consultancy for improving rating of MSMEs by
Consultants through QCI/NPC, Field formations of O/o DC-MSME viz. MSME-DI,
MSME-TC including its autonomous bodies, BEE etc. (Ministry of MSME will
subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises' Consultancy
charges: average 70% of Fee) (Hand holding charges Rs. 1.9 Lakh per enterprise
whereas in case of MSMEs owned by SC/ST entrepreneurs additional support of Rs
10,000/- will be provided.)
d) Re-Assessment/Re-Rating by Credit Rating Agencies & Other Agencies (Ministry
of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises'
Certification Fee: average 70% of Fee) (Assessment Fee Rs. 40000/- per enterprise.).

61. 61
How to apply?
The ZED Certification Scheme is a 4 steps process:
Step 1 : Register free on the online portal of ZED (www.zed.org.in), using the
following link:
http://assessment.zed.org.in/Assessment/Assessment_BeforeLogin.aspx, using the
valid (Indian) mobile number and email address.
Step 2 : Online self-assessment on the ZED parameters followed by Desktop
Assessment.
Step 3 : Site-assessment, if selected on the basis of Desktop Assessment.
Step 4 : Consultancy: Rated MSMEs will have the option to avail the service of an
authorized ZED consultant for gap-analysis and handholding.
Eligibility:
All manufacturing Micro, Small and Medium enterprises (MSME) having Udyog
Adhar Memorandum can apply.
N. A SCHEME FOR PROMOTING INNOVATION, RURAL INDUSTRY &
ENTREPRENEURSHIP (ASPIRE)
The main objectives of the scheme are to:
(i) Create new jobs and reduce unemployment
(ii) Promote entrepreneurship culture in India
(iii) Boost Grassroots economic development at district level
(iv) Facilitate innovative business solution for un-met social needs, and
(v) Promote innovation to further strengthen the competitiveness of the MSME sector

62. 62
The Scheme aims to implement the Incubation and Commercialisation of Business
Ideas Programme through technical / research institutes, including those in the field of
agro based industry. These would be designated as Knowledge Partners and would
incubate new/existing technologies for their commercialisation.
The scheme also provides funds for the incubator/incubation and creates necessary
synergy between this scheme and the Livelihood Business Incubators/Technology
Business Incubators and Incubation schemes of MSME / NSIC / KVIC / Coir Board /
Other Ministries/Departments as well as Private incubators.
O. CREDIT LINKED CAPITAL SUBSIDY FOR TECHNOLOGY
UPGRADATION (CLCSS)
CLCSS provides 15% subsidy for additional investment up to ₹ 1 cr for technology
upgradation by MSEs. Technology upgradation would ordinarily mean induction of
state-of-the-art or near state-of-the- art technology. In the varying mosaic of
technology covering more than 7,500 products in the Indian small scale sector,
List of technologies is available at http://www.dcmsme.gov.in
Units looking to replace existing equipment/technology with the same
equipment/technology will not qualify for subsidy under this scheme. Similarly, units
upgrading with used machinery would not be eligible under this scheme.
Nature of assistance:
The revised scheme aims at facilitating technology upgradation by providing 15% up
front capital subsidy to MSEs, including tiny, khadi, village and coir industrial units,
on institutional finance availed by them for induction of well established and
improved technologies in specified sub-sectors/products approved under the scheme.
Eligibility: Any MSE unit
How to apply?

63. 63
Candidates meeting the eligibility criteria may approach 12 nodal banks / agencies.
These are SIDBI, NABARD, SBI, BoB, PNB, BOI, SBBJ, TIIC, Andhra Bank,
Corporation Bank, Canara Bank and Indian Bank. Web link:
www.dcmsme.gov.in/schemes/credit_link_scheme.htm
P. MARKETING SUPPORT/ASSISTANCE TO MSMES (BAR CODE)
Under this scheme the Ministry conducts seminars and reimburses registration fees for
bar coding in order to encourage MSEs to use bar-codes. Reimbursement of
registration fee (one time and recurring for 3 years) for bar coding. Financial
assistance for reimbursement of 75% of one-time registration fee (Under MSE-MDA)
and 75% of annual recurring fee for first three years (Under NMCP) paid by MSEs to
GS1 India for the use of bar coding.
The scheme applies only to MSEs with and registration with GS1 India for use of
barcode.
After getting registration for use of barcode for products, (http://www.gs1india.org)
The application form along with formats for supporting documents may be collected
from the Director, MSME-DI, or download from http://www.dcmsme.gov.in/
Fill the prescribed application form for claiming reimbursement on bar code;
Submit the filled-in application form with required documents to the office of MSME-
DI.
The filled-in along with formats with required documents is to be submitted to the
office of MSME-DI.
Q. Lean Manufacturing Competitiveness for MSMEs

64. 64
The objective of the scheme is to enhance the manufacturing competitiveness of
MSMEs through the application of various Lean Manufacturing (LM) techniques
Financial assistance:
Financial assistance is provided for implementation of lean manufacturing techniques,
primarily the cost of lean manufacturing consultant (80% by GoI and 20% by
beneficiaries). Lean manufacturing consultants (LMCs) will raise bills for services
provided to Special Purpose Vehicle (SPV). SPV will, in turn, pay the first installment
of 20% to the LMC and will obtain reimbursement from the NMIU. Thereafter,
Ministry of MSME will transfer funds to the NMIU. SPV payments to LMC will be
on a milestone basis in 5 tranches, each of 20% of the amount fixed.
A group of SMEs can apply for the scheme. Either a recognised SPV can apply on its
own, or a mini cluster can be formed by a group of 10 or more such units.
The SPV can apply to the National Monitoring and Implementing Unit (National
Productivity Council for the Scheme) in the given format.
www.dcmsme.gov.in/schemes/lean-manufact.htm
R. Technology and Quality Upgradation Support to MSMEs
The scheme advocates the use of energy efficient technologies (EETs) in
manufacturing units so as to reduce the cost of production and adopt clean
development mechanism.
Capacity building of MSME clusters for energy efficiency/clean development and
related technologies. Funding support of up to 75% for awareness programmes,
subject to maximum of Rs 75,000 per programme;
Implementation of energy efficient technologies in MSME units 75% of actual
expenditure for cluster level energy audit and preparation of model DPR;
Setting up of Carbon Credit Aggregation Centres. 50% of actual expenditure subject

65. 65
to maximum Rs 1.5 lakh per DPR towards preparation of subsequent detailed project
reports for individual MSMEs on EET projects;
Encouraging MSMEs to acquire product certification / licenses from National /
International bodies. 75% of the actual expenditure, subject to a maximum Rs 15;
25% of the project cost as subsidy by Government of India, balance amount to be
funded through loan from SIDBI/banks/ financial Institutions. MSMEs are required to
make the minimum contribution as required by the funding agency;
75% subsidy towards licensing of products to national/ international standards; ceiling
Rs 1.5 lakh for obtaining product licensing/marking to National standards and Rs 2
lakhs for International standards.
Eligibility:
Expert organisations like PCRA, BEE, TERI, IITs, NITs, etc.
State Govt. agencies like MITCON, GEDA, etc.
Cluster/industry based associations of MSMEs
NGOs and Technical Institutions.
How to apply?
Obtain product certification from national standardisation bodies (like BIS and BEE)
or international product certifications (CE, UL, ANSI, etc.)
Applicant applies in the specified format (given in annexure-IV of scheme guidelines)
along with required documents for re-imbursement of fees, forwarding it, to MSME-
DI concerned.
www.dcmsme.gov.in/schemes/TEQUPDetail.htm
S. BUILDING AWARENESS ON INTELLECTUAL PROPERTY RIGHTS
(IPR)

66. 66
The purpose of the scheme is to enhance awareness among the MSMEs about
Intellectual Property Rights, to take measures for protecting their ideas and business
strategies. Effective utilisation of IPR tools by MSMEs would also assist them in
technology upgradation and enhancement of their competitiveness.
Nature of assistance:
Conducting awareness/sensitization programmes on IPR (Applicants in this case are
MSME organisations and expert agencies) GoI assistance of Rs 1 lakh per awareness
programme
Conducting pilot studies for selected clusters/groups of industries (Applicants in this
case are MSME organisations, competent agencies and expert agencies). GoI
assistance of Rs 2.5 lakh per pilot study.
Funding support for conducting interactive seminars / workshops (Applicants in this
case are MSME organisations and expert agencies)
Funding support for conducting specialised training on IPR (Applicants – Expert
agencies)
Funding support in the form of Grant on Patent/GI Registration (Applicants in this
case are MSME units and MSME organisations)
Funding support for setting up IP Facilitation
Who can apply and how?
Registered MSME units, association, consultancy firms, expert agencies etc.
Application forms for each of the components are provided along with scheme
guidelines at: www.dcmsme.gov.in/schemes/IPRDetail.html
T. INTERNATIONAL COOPERATION
The scheme covers the following activities:

67. 67
a) Visit of MSME delegations to other countries in international exhibitions/ trade
fairs, conferences/ summits/workshops etc. for exploring new areas of technology
infusion/upgradation, joint ventures, improving market of MSMEs products, etc.
b) Participation of MSME delegations in international exhibitions, trade fairs and
buyer-seller meets in foreign countries.
c) Holding international conferences/summits/workshops/seminars relating to MSME
sector to be organized in India by the Industry Associations/ Government
organizations.
d) Holding/organising mega international exhibition or fair and international
conferences/seminars/workshops, Joint Committee Meetings/Joint Working Group
Meetings/Government to Government bilateral meetings with outer countries in India
by Ministry of MSME or organizations under it.
e) Sending a delegation of the Ministry of MSME to an International
Exhibition/Fairs/Conference in foreign countries.
Assistaance:
IC Scheme provides financial assistance on reimbursement basis for airfare, space
rent, freight charges, advertisement & publicity charges and entry/registration fee on
reimbursement basis in case of participation in international exhibitions/trade fairs.
Eligibile:
Government Institutions and Registered Industry Associations associated with
promotion and development of MSME sector.
U. MARTKETING ASSISTANCE SCHEME:
The marketing assistance scheme provides assistance for the following activities:

68. 68
a) Organisation of exhibitions abroad and participation in international exhibitions/
trade fairs
b) Co-sponsoring of exhibitions organised by other organisations/industry
associations/ agencies;
c) Organising buyer-seller meets, intensive campaigns and marketing promotion
activities.
Assistance under the scheme:
(a).The maximum net budgetary support for participating in an international
exhibition/trade fair would normally be restricted to an overall ceiling of Rs. 30 lakh
per event (Rs. 40 lakh for Latin American countries).
(b). The budget for organizing the Domestic Exhibitions/Trade Fair would depend
upon the various components of the expenditure, i.e. space rental including
construction and fabricating charges, theme pavilion, advertisement, printing material,
transportation etc. However, the budgetary support towards net expenditure for
organizing such exhibition/trade fair would normally be restricted to a maximum
amount of Rs. 45 lakh. The corresponding budgetary limit for participation in an
exhibition/trade fair shall be Rs. 15 lakh.
(c). Financial assistance will be provided ranging from 25% to 95% of the Air-Fare
and space rent to entrepreneurs on the basis of size and type of the enterprise.
Financial assistance for co-sponsoring an event would be limited to 40% of the net
expenditure, subject to a maximum amount of 5 lakh.
Who can apply?
MSMEs, Industry Associations and other organisations related to MSME sector are
eligible to apply.
V. PROCUREMENT AND MARKETING SUPPORT SCHEME (P&MS)