Annexure II Harnessing MSMEs for Development MSME POLICIES

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Annexure II Harnessing MSMEs for Development

Annexure II Harnessing MSMEs for Development

MSME POLICIES & SCHEMES BY M. SREENIVASULU DIRECTOR MSME-DI, GUWAHATI

MSME POLICIES & SCHEMES BY M. SREENIVASULU DIRECTOR MSME-DI, GUWAHATI

Ministry of MSME (NER) ØManipur ØTripura ØMeghalaya §Mizoram ØTinsukia ØNaharlagun ØSiliguri §Sikkim ØAgartala ØImphal

Ministry of MSME (NER) ØManipur ØTripura ØMeghalaya §Mizoram ØTinsukia ØNaharlagun ØSiliguri §Sikkim ØAgartala ØImphal ØShillong ØAizawal ASSAM MEGHALAYA ARUNACHAL PRADESH DCMSME NSIC Office MSME-DI, GHY ØSILCHAR ØDIPHU ØTEZPUR ØSHILLONG ØTURA ØITANAGAR MSME-DO (NER) MSME-DI IMPHAL DIMAPUR (NAGALAND) Coir Board SRO MSME-DI AGARTALA MSME-TR Jorhat Ext. MSME-DI GANGTOK AIZWAL (MIZORAM) KVIC ZONAL O/C (GHY)/SILCHAR Dvn O/C (State Office in every State)

MSME- DEVELOPMEMSMNT INSTITUTE, Guwahati, Activities in brief: Ø Ø Ø Ø Ø Technical Consultancy

MSME- DEVELOPMEMSMNT INSTITUTE, Guwahati, Activities in brief: Ø Ø Ø Ø Ø Technical Consultancy Potentiality Survey (State & Districts) Modernization and Technology Upgradation Ancillary Development Training programmes Export Promotion Awareness programmes Directory of specific industries Coordination with DI & CC, State Govt. Agencies/ Banks Cluster Development. 1 4

Definition of MSMEs Manufacturing Enterprises Micro Enterprises Small Enterprises Medium Enterprises Service Enterprises Micro

Definition of MSMEs Manufacturing Enterprises Micro Enterprises Small Enterprises Medium Enterprises Service Enterprises Micro Enterprises Small Enterprises Medium Enterprises Investment limit in Plant & Machinery Existing Up to Rs. 25 lakh Above Rs. 25 lakh & up to Rs. 5 Crore Above Rs. 5 Crore & up to Rs. 10 Crore Investment limit in Equipment Existing Up to Rs. 10 lakh Above Rs. 10 lakh & up to Rs. 2 Crore Above Rs. 2 Crore & up to Rs. 5 Crore Cabinet has approved the changes on 7 th Feb 2018 Annual Turnover Proposed Up to Rs 5 Cr More than Rs 5 cr but does not exceed Rs 75 cr More than Rs 75 cr but does not exceed Rs 250 cr 4

Schemes Promotion of MSMEs

Schemes Promotion of MSMEs

MSE-CDP: WHAT IS A CLUSTER Cluster is a group of enterprises producing same or

MSE-CDP: WHAT IS A CLUSTER Cluster is a group of enterprises producing same or similar products/services which can be linked together by common physical infrastructure facilities to help them to address their common challenges. COMBINATION OF VILLAGE/BLOCKS AND EVEN SMALLER DISTRICTS MAY ALSO FALL UNDER THE GEOGRAPHICAL EXTENT OF CLUSTER PRINCIPAL CHARACTERISTICS: COMMONALITY OF PRODUCTION PROCESS, QUALITY CONTROL & TESTING, ENERGY CONSERVATION, APPLICATION OF TECHNOLOGY

ENVIRONMENT SUPPORT INSTITUTIONS Backward linkages FIRM Machinery supplier RAW Raw Material Supplier FIRM Selling

ENVIRONMENT SUPPORT INSTITUTIONS Backward linkages FIRM Machinery supplier RAW Raw Material Supplier FIRM Selling Agents FIRM BDS PROVIDERS Forward Linkages Direct Custom

ADVANTAGE THE CLUSTER APPROACH • SUBSTANTIAL ECONOMIES OF SCALE IN TERMS OF DEPLOYMENT OF

ADVANTAGE THE CLUSTER APPROACH • SUBSTANTIAL ECONOMIES OF SCALE IN TERMS OF DEPLOYMENT OF AVAILABLE RESOURCES • EFFECTIVE IMPLEMENTATION • MORE SUSTAINABLE RESULTS IN THE MEDIUM TO LONG TERM.

OBJECTIVES 1. To support the sustainability and growth of MSEs - Improvement of Technology,

OBJECTIVES 1. To support the sustainability and growth of MSEs - Improvement of Technology, Skills and Quality, Market access and Access to Capital 2. To build capacity of MSEs - Formation of SHG, Consortia, up-gradation of Associations 3. To create/up-grade infrastructure facilities - In New/Existing Industrial Areas/Clusters of MSEs 4. To set up CFCs - For Testing, Training Centre, RM Depot, Effluent Treatment and Complementing Production Processes.

CLUSTER DEVELOPMENT METHODOLOGY Diagnostic Study Selection Trust Building Action Plan Implementation Monitoring and Evaluation

CLUSTER DEVELOPMENT METHODOLOGY Diagnostic Study Selection Trust Building Action Plan Implementation Monitoring and Evaluation Exit • Full time CDE • Intermediary led • Role of BDS • 18 Months time • Pressure point as entry • Holistic thereafter

SELLCTION OF CLUSTER(S) • IMPORTANCE OF THE CLUSTER(S) IN TERMS OF NUMBER OF UNITS,

SELLCTION OF CLUSTER(S) • IMPORTANCE OF THE CLUSTER(S) IN TERMS OF NUMBER OF UNITS, EMPLOYMENT, PRODUCTION, EXPORTS ETC • EXISTENCE OF CRITICAL GAPS • VIABILITY OF THE CLUSTER • VIBRANCY OF LOCAL INDUSTRY ASSOCIATION/S • SOCIAL AND ENVIRONMENTAL CONSIDERATIONS • PREFERENCE FOR CLUSTERS HAVING : SIZEABLE PRESENCE OF MICRO ENTERPRISES, RURAL ARTISANS AND WOMEN ENTREPRENEURS

1. SCOPE OF MSE-CDP- Common Facility Centre: 1. To create tangible assets like- common

1. SCOPE OF MSE-CDP- Common Facility Centre: 1. To create tangible assets like- common production. Design centre, Testing Centre, Training Centre, Effluent Treatment Plant, Marketing Display, Selling Centre, Common Logistic Centre, Raw material Bank, etc. 2. GOI Assistance: 90%of the project cost of maximum of Rs. 20. 00 crs Cost of land & Building to be met by SPV/state govt. 3. SPV- Minimum 20 cluster units to be members of SPV & registered as section 8 company. 4. Project to be completed & operational within two years. Contribution of cluster beneficiaries should not be less than 10% of the cost of CFC. Contribution of state govt would be considered as gap funding.

2. SCOPE OF MSE-CDP- Infrastructure Development 1. Consists of projects for infrastructural facilities like

2. SCOPE OF MSE-CDP- Infrastructure Development 1. Consists of projects for infrastructural facilities like power distribution network, water, telecommunication, drainage, pollution control facilities, roads, banks. Raw material storage, marketing outlets. 2. GOI Assistance restricted to 80% of the project cost of maximum Rs. 10. 00 Crs for Industrial estates & Rs. 15. 00 Crs for Flatted Factory Complex.

3 . SCOPE OF MSE-CDP- Marketing Hub/Exhibition Centres Ø GOI Assistance to associations for

3 . SCOPE OF MSE-CDP- Marketing Hub/Exhibition Centres Ø GOI Assistance to associations for establishing Marketing Hubs/Exhibition Centres at centarl places. Ø GOI grant is 60% of the project cost of maximum Rs. 10. 00 crs for product specific assiciations with BMO rating of Gold & above by NABET (QCI) Ø GOI grant is 80% of the project cost of maximum Rs. 10. 00 crs for Association of women entrepreneurs Ø Remaining cost to be met by SPV/State Govt. SPV contribution not less than 10%. Ø GOI Assistance will be towards construction of building, furnishing, furniture, items of permanent display, misc assets like generator etc. Ø Cost of construction of marketing Hub not exceeding Rs. 4. 00 Crs with builtup area of 2000 sq mt will also be eligible

Scheme of fund for Regeneration of Traditional Industries (SFURTI) v. Objective: • Funding to

Scheme of fund for Regeneration of Traditional Industries (SFURTI) v. Objective: • Funding to traditional industries & artisan clusters • Improvement in competitiveness of clusters. • Sustained employability for traditional Industry artisans and rural entrepreneurs. v. Who can apply: • NGOs, Institutions of the Central and State Governments and Semi. Government institutions, field functionaries of State and Central Govt. , Panchayati Raj institutions (PRIs), and similar agencies, with suitable expertise to undertake cluster development. 16

Scheme of fund for Regeneration of Traditional Industries (SFURTI) Contd. . v Benefits –

Scheme of fund for Regeneration of Traditional Industries (SFURTI) Contd. . v Benefits – • Maximum of Rs 8 cr. to support Soft, Hard and Thematic interventions. • Type of clusters: Heritage Clusters (1000 -2500 artisans)Rs 8 crore Major Clusters (500 -1000 artisans)Rs 3 crore Mini-Clusters (Upton 500 artisans)Rs 1. 5 crore v. Implementation: The KVIC, Coir Board, Ni. MSME (Hyderabad), IED (Odisha), IIE (Guwahati), IMED, J&K KVIB are the Nodal Agencies for scheme implementation in their respective areas http: //sfurti. msme. gov. in/

Procurement & Marketing Support 1. Participation of Individual MSEs in Domestic Trade Fairs/Exhibitions Eligible

Procurement & Marketing Support 1. Participation of Individual MSEs in Domestic Trade Fairs/Exhibitions Eligible Items Scale of Assistance Space Rent Charges 100% limited to Rs. 30, 000/- or actual or whichever is less Contingency Expenditure (includes travel, publicity & freight) 100% limited to Rs. 15, 000/- or actual or whichever is less One representative from each participating unit can travel by AC-II Tier (train) or Economy Class (air). Local participants to be paid @ Rs. 12/- per km as freight charge upto 50 km One MSE would be allowed reimbursement for maximum 2 events in a year.

Organising. Trade Fairs/Exhibitions by Ministry/O/O DC(MSME)/Govt Organisations Eligible Items Scale of Assistance Space Rent

Organising. Trade Fairs/Exhibitions by Ministry/O/O DC(MSME)/Govt Organisations Eligible Items Scale of Assistance Space Rent Charges • Implementing agency to hire bare space /stalls from event organisers & mobilise participating units • Upper limit of hiring build up space is Rs. 15. 00 lakh/Rs. 25. 00 lakh & Rs. 40. 00 lakh respectively for regional/national/international events • Participating units to be provided stalls free of cost, subject to one stall per unit • Trade fair for SHGs/ Artisans/MSEs of NER to be held with 100% space rent subsidy Advertising & Publicity & Organising cultural programmes through event organiser or any approved agency Rs. 15. 00 lakh max or actual whichever is less.

Capacity Building of MSMEs in Modern Packaging Techniques Eligible Items Unit based interventions for

Capacity Building of MSMEs in Modern Packaging Techniques Eligible Items Unit based interventions for specific packaging requirements Scale of Assistance 100% of total cost paid to empanneled agency/consultancy organisation limited to Rs. 50, 000/- or actual whichever is less. Agencies to be empanelled by Indian Institute of Packaging

Development of Marketing Haats Eligible Items Scale of Assistance Upgradation / Renovation / Rs.

Development of Marketing Haats Eligible Items Scale of Assistance Upgradation / Renovation / Rs. 10. 00 lakh per haat/city or actual, Modification of existing facilities whichever is less based on estimates in marketing haats prepared by govt approved valuers/PWD Selection of Haat to be done by implementing agency and will be need based, through a committee comprising of Director MSME-DI as Chairman & members from state Directorate of Industries, representatives of local bodies etc. Final approval of DC (MSME) is required

Vendor Development Programme (VDP Types of VDPs State Level Vendor Development programme Programme Duration

Vendor Development Programme (VDP Types of VDPs State Level Vendor Development programme Programme Duration One Day Scale of Assistance Rs. 30, 000/- per programme National Level 2 -3 days Rs. 5. 00 lakh subject to recovery of 10% Vendor Development programme MSME-DI to ensure participation of all stakeholders like PSUs, State PSEs, State govt representatives etc and also MSME Entrepreneurs

International/National Workshops/Seminars Items Internationnal/National Seminars/Workshops to educate MSMEs on various facets of business development

International/National Workshops/Seminars Items Internationnal/National Seminars/Workshops to educate MSMEs on various facets of business development like product/process development; innovations; technological development, IPR issues; EXIM policy, Public Procurement Policy, Packaging, Market Research & access etc Scale of Assistance Rs. 2. 00 lakh per event or actual whichever is lower. In addition, Rs. 1. 5 lakh towards for air travel, boarding & lodging of international experts for international event. Govt organisations or Non. Govt organisations having atleast 5 yrs experience in organising such events are eligible to apply Limit may be enhanced with approval of empowered committee subject to limit of 10 -15%

Awareness Programme Objective Intake Capacity & Duration Scale of Assistance To create awareness on

Awareness Programme Objective Intake Capacity & Duration Scale of Assistance To create awareness on Atleast 30 MSME Rs. 70, 000/- per trade fairs, digital Participants programme advertising, e-marketing platforms, GST, Ge. M etc One Day Limit may be enhanced with approval of empowered committee subject to limit of 10 -15%

OTHER SCHEMES OF DC(MSME) Entrepreneurship & Skill Development ØIndustrial Motivation Campaign (IMC) – One

OTHER SCHEMES OF DC(MSME) Entrepreneurship & Skill Development ØIndustrial Motivation Campaign (IMC) – One day awareness and Motivation programme for self employment. ØEntrepreneurship Development Programme (EDP) – Two weeks programme on Entrepreneurship Development Programme ØManagement Development Programme (MDP) – Two weeks programme for Development of Management Skills ØEntrepreneurship and Skill Development Programme (ESDP) – Six weeks Product oriented ESDPs with theoretical and practical sessions for Skill Development ØSkill Development Programme (SDP) – Six months workshop based Skill Development Programme at the Institute premises

OTHER SCHEMES CONTD. . ØCredit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS) ØCredit

OTHER SCHEMES CONTD. . ØCredit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS) ØCredit Guarantee Fund Scheme for Micro and Small Enterprises(CGTMSE)

OTHER SCHEMES CONTD. . National Manufacturing Competitiveness Programme (NMCP) ØLean Manufacturing Competitiveness Scheme for

OTHER SCHEMES CONTD. . National Manufacturing Competitiveness Programme (NMCP) ØLean Manufacturing Competitiveness Scheme for MSMEs (LMCS) ØDesign Clinic Scheme for design expertise to MSMEs Manufacturing sector (DESIGN) ØSupport for Entrepreneurial and Managerial Development of SMEs through Incubators. ØBuilding Awareness on Intellectual Property Rights(IPR) for MSME. ØPromotion of Information and Communication Technology ( ICT) in Indian Manufacturing Sector ØDigital MSME

VARIOUS SCHEMES (Cont. . ) Special Scheme ØNational Award Scheme Others: ØUdyog. Aadhaar Memorandum

VARIOUS SCHEMES (Cont. . ) Special Scheme ØNational Award Scheme Others: ØUdyog. Aadhaar Memorandum (UAM) ØMSME Data Bank ØFinancial Support to MSMEs in ZED Certification Scheme ØTechnology Centre Systems Programme (TCSP)

Public Procurement Policy for MSEs 1. Public Procurement Policy for MSEs order, 2012 notified

Public Procurement Policy for MSEs 1. Public Procurement Policy for MSEs order, 2012 notified under section 11 of MSMED Act 2006. 2. Effective from 1 st April, 2012 (Gazette notification on 26 th March’ 2012. ) 3. Every Central Ministry /Dept. /Central PSUs shall set an annual target for 20% procurement from MSE Sector. 4. Overall procurement goal of minimum 25% shall be mandatory after three years i. e. from 1 st April 2015. 5. A sub-target of 4% out of 25% target of annual procurement earmarked for procurement from MSEs owned by SC/STs. 3% reserved for Women

C Contact Us MSME – Development Institute Ministry of MSME, Govt. of India Bamunimaidam,

C Contact Us MSME – Development Institute Ministry of MSME, Govt. of India Bamunimaidam, Guwahati Pin: 781021 E-mail id: dcdi-guwahati@dcmsme. gov. in Website: dcmsme. gov. in

Thank You 52

Thank You 52