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IN INDIA
AN OVERVIEW
Definition of MSME
In India, the enterprises have been classified broadly into two categories 1. Manufacturing ; and 2. Those engaged in providing /rendering of services. 3. oth categories have been further classified into !icro, s!all and !ediu! enterprises based on their invest!ent in plant and !achinery or on e"uip!ent. The present ceiling of invest!ent to be classified as !icro, s!all or !ediu! enterprises is as under #
Classificati Investment ceiling for plant, on Machinery or Equipments Manufacturing Service Enterprises Enterprises Upto Rs. 25 la h Upto R. !" la h #$ove Rs. 25 #$ove Rs. !" la h % upto Rs. 5 la h % upto crore Rs. & crore #$ove Rs. 5 #$ove Rs. 2 Crore an upto crore % upto Rs. !" crore Rs. 5 crore
Micro Small
Me'ium
(o enhance the competitive strength of the MSEs, the ,overnment intro'uce' a scheme to incentives technological up gra'ation , quality improvement an' $etter environment management $y the MSEs. (he scheme reim$urses 051 of the fees, su$6ect to a ma/imum of Rs. 05,"""+. for acquiring 7uality Management System 2 7MS5+IS8 9""" certification an' + or Environment Management 2EMS5:IS5 !;""! certification $y the MSEs.
MSE CLUSTER DEVELOPMENT PROGRAMME (he Micro an' Small Enterprises Cluster <evelopment =rogramme 2 MSE C<=5 is implemente' for holistic 'evelopment of clusters of MSEs. (he programme envisages measures for capacity $uil'ing, s ill 'evelopment, technology up gra'ation of the enterprises, improve' cre'it 'elivery, mar eting support, setting up of common facility centers etc, $ase' on 'iagnostic stu'ies carrie' out in consultation )ith cluster units an' their collectives an' management of cluster. )i'e facilities $y the cluster collectives.
CREDIT LINKED CAPITAL SUBSIDY SCHEME (he Cre'it >in e' Capital Su$si'y Scheme 2 C>CSS5 aims at facilitating technology up. gra'ation $y provi'ing !51 upfront capital su$si'y ).e.f. 29th Septem$er , 2""5 to manufacturing MSEs, on institutional finance upto Rs. ! crore availe' of $y them for in'uction of )ell esta$lishe' an' improve' technologies in the specifie' su$ sectors+pro'ucts approve' un'er the scheme.
(he main o$6ective of the scheme is to $ring the MSME sector an' 'esign e/pertise into a common platform an' to provi'e e/pert a'vice an' solutions on real time 'esign pro$lems, resulting in continuous improvement an' value. a''ition for e/isting pro'ucts. It also aims at value a''e' costs planne' un'er the scheme inclu'e creation of <esign Clinics Secretariat along )ith regional centers for intervention on the 'esign nee's of the MSME sector.
(he o$6ective of this scheme is to i'entify an' encourage those clusters of MSMEs )hich have quality pro'uction an' e/port potential an' assist them to achieve competitiveness in the national an' international mar ets. (he scheme aims at improving the mar eting competitiveness of MSME sector $y improving their techniques an' technology for pr"motion of e/ports. (he ,oI contri$ution is stipulate' as Rs. !9 crore for this scheme. (he $roa' activities plane' un'er the scheme inclu'e technology up gra'ation in pac aging , 'evelopment of mo'ern mar eting techniques, competition stu'ies, etc.
S?I,, DE@E,O*ME:2
?ith an o$6ective to create self employment, the entrepreneurship an' s ill 'evelopment scheme is implemente' $y 8ffice of the <C2MSME5 through its net)or of 59 MSME I <IS an' their $ranches,. (he programmes are con'ucte' inclu'e Entrepreneurship <evelopment, Entrepreneurship an' S ill <evelopment, Management <evelopment an' Ausiness S ill <evelopment. (hese programme are con'ucte' for unemploye' youth against a nominal fee an' in some cases stipen' is also provi'e'.
EA*O%2 *%OMO2IO:
i. ii. E/port promotion form the MSE sector has $een accor'e' a high priority. (o help MSEs in e/porting their pro'ucts, the follo)ing facilities+incentives are provi'e' =ro'ucts of MSE e/porters are 'isplaye' in international e/hi$ition an' the e/pen'iture incurre' is reim$urse' $y the ,overnment (o acquaint MSE e/porters )ith latest pac aging stan'ar's, techniques etc training programme on pac aging for e/porters are organi*e' in various parts of the country in association )ith the In'ian Institute of =ac aging Un'er the MSE Mar eting <evelopment #ssistance 2 M<#5 Scheme, assistance is provi'e' to in'ivi'uals for participation in overseas fairs+e/hi$itions, o overseas stu'y tours. (he scheme also offer assistance for Sector specific mar et stu'y $y MSE #ssociating +E/port =romotion Councils+-e'eration of In'ian E/port 8rgani*ation Initiating+contesting anti 'umping cases $y MSE #ssociations an' Reim$ursement of 051 of the one time registration fee an' annual fee charge' $y ,SI In'ia for a'option of Aar Co'ing.
iii.
a. $. c.
I:$%4S2%8C28%E DE@E,O*ME:2
-or setting up of in'ustrial estates an' to 'evelop infrastructure facilities li e po)er 'istri$ution net)or , )ater telecommunication, 'rainage an' pollution control facilities, roa's, $an s, ra) material, storage an' mar eting outlets, common services facilities an' technological $ac up services etc for MSMEs, the integrate' Infrastructural <evelopment 2II<5 Scheme )as launche' in !99;. the scheme covers rural as )ell as ur$an areas )ith a provision of 5"1 reservation for rural areas an' 5"1 in'ustrial plots are to $e reserve' for the micro enterprises. (he scheme also provi'es upgra'ation+strengthening of the infrastructural facilities in the e/isting in'ustrial estates. (he estimate' cost to set up an II< Centre is Rs. 5 Crore. Central ,overnment provi'e' ;"1 in case of general states an' upto 3"1 for 4orth East Region, E%F, H.=. an' Uttra han' as grant an' remaining amount coul' $e loan fro SI<AI+Aan +-inancial Institutions or the state -un's.
:42IO:4, 4B4%DS
$%T&I'( )* &+&,$( -.$%, /&T%0),1 2&3 &,% &( *)'')+( 2I5 .ational &ward for outstanding %ntrepreneurship in Micro 4 (!all %nterprises engaged in !anufacturing -irst 4ational #)ar'J Rs. !,"","""+. cash pri*e , a (rophy an' a Certificate. Secon' 4ational #)ar' J Rs. 05,"""+. cash pri*e, a (rophy an' a Certificate (hir' 4ational #)ar' J Rs. 5","""+. cash pri*e, a (rophy an' a Certificate Special 4ational #)ar' to outstan'ing ?omen Entrepreneur J Rs. !,"","""+" cash pri*e, a (rophy an' a Certificate. Special 4ational #)ar' to outstan'ing SC+S( Entrepreneurs J Rs. !,"","""+.cash pri*e, a (rophy an' a Certificate. Special 4ational #)ar' to outstan'ing Entrepreneur from 4ER inclu'ing Si imK Rs. !,"","""+. cash pri*e, a (rophy an' a Certificate. 2II5 .ational &ward for )utstanding %ntrepreneurship in Micro 4 (!all %nterprises rendering services . -irst 4ational #)ar'J Rs. !,"","""+. cash pri*e , a (rophy an' a Certificate. Secon' 4ational #)ar' J Rs. 05,"""+. cash pri*e, a (rophy an' a Certificate 2III5 4ational #)ar' for outstan'ing Entrepreneurship in Me'ium Enterprises engage' in manufacturing . Secon' 4ational #)ar' J Rs. !,"","""+. cash pri*e, a (rophy an' a Certificate Secon' 4ational #)ar' J Rs. 05,"""+. cash pri*e, a (rophy an' a Certificate 2ID5 & (pecial ,ecognition &ward. # Special Recognition #)ar' to those MSMEs scoring mar s a$ove 3" percent an' 2 5" percent in case of 4orth Eastern Regions inclu'ing Si im5 )ill $e given )ith a Cash pri*e of Rs. 2","""+. each a Certificate an' a (rophy at the state >evel -unction to $e organi*e' $y <irector MSME <I. (he #)ar's un'er category 2$5 )ill $e given once in a calen'ar year for the selecte' =ro'uct ,roups 8ne #)ar' )ill $e given for each =ro'uct ,roup covere' in the list of the Select =ro'uct ,roups for the year #)ar'. 4ational a)ar' for selecte' pro'ucts in Micro % Small Enterprises Rs. !,"",""" a Cash =ri*e a Certificate an' a (rophy. # special recognition a)ar' to those MSEs scoring mar s a$ove 3" percent 2 5" percent in case of 4orth Eastern Region inclu'ing Si im5 )ill $e given )ith a Cash pri*e of Rs. 2","""+. each a certificate an' a (rophy at the State >evel -unction t $e organi*e' $y <irector MSME <I. The $etails of awards under category 2 c3 are as under 4ational a)ar' for Research an' <evelopment Efforts in Micro % Small Enterprises J a. -irst 4ational #)ar'J Rs. !,"","""+. cash pri*e , a (rophy an' a Certificate. $. Secon' 4ational #)ar' J Rs. 05,"""+. cash pri*e, a (rophy an' a Certificate 2. 4ational #)ar' for Research % <evelopment Efforts in Me'ium Enterprises a -irst 4ational #)ar'J Rs. !,"","""+. cash pri*e , a (rophy an' a Certificate. $ Secon' 4ational #)ar' J Rs. 05,"""+. cash pri*e, a (rophy an' a Certificate & & special ,ecognition &ward # special Recognition #)ar' to those MSMEs scoring mar s a$ove 3" percent 2 5" percent in case of 4orth Eastern Region inclu'ing Si im5 )ill $e given a Cash pri*e of Rs, 2","""+. each, a Certificate an' a (rophy at the State >evel -unction to $e organi*e' $y <irector, MSME <I