Schemes offered by SME division, ministry of MSME for aiding growth in the sector
Source |www.indiansme.in | usha_romesh
The SME division of the Ministry offers four key schemes to aid Small and Medium Industries in India–
- Scheme for ‘Providing financial assistance on International Cooperation’
- Scheme for ‘providing financial assistance for performance and credit rating under PCR Scheme
- Scheme for ‘Providing establishment of new institutions (EDIs) and strengthening the infrastructure of existing ones’
- Marketing support under the Marketing Assistance scheme.
Let us examine these schemes in detail:
Scheme for ‘Providing financial assistance on International Cooperation’
This scheme is beneficial to those SMEs which have business relations with other countries or intend to commence that nature of business. In a nutshell, this scheme covers interactions of delegates with international community and knowledge sharing through participation in various events. The particulars of the scheme are as under:
- Deputation of MSME business delegations to other countries for exploring new areas of technology infusion/upgradation, facilitating joint ventures, improving market of MSMEs products, foreign collaborations, etc.
- Participation by Indian MSMEs in international exhibitions, trade fairs and buyer-seller meets in foreign countries as well as in India, in which there is international participation.
- Holding international conferences and seminars on topics and themes of interest to the MSME.
Under this scheme, financial assistance covering almost 95% of the expenses (including airfare, rent, insurance, local travel and other common expenses like printing of catalogues) is provided to entrepreneurs. This assistance is dependent on the size and type of the enterprise. As per the eligibility criteria, the State or Central Government Organisations, Industry or Enterprise associations and Registered Societies or trusts and Organisations associated with promotion and development of MSMEs can apply for this scheme.
Further details of this scheme can be obtained at – http://msme.gov.in/WriteReadData/eBook/IC_EN.pdf
Scheme for ‘providing financial assistance for performance and credit rating under PCR Scheme
This scheme is aimed at letting SMEs know about their strengths and weaknesses by assigning a credit rating. It is implemented by the National Small Industries Corporation (NSIC) and the rating is assigned by any of the below empanelled agencies.
- CRISIL (Credit Rating Information Services of India Limited)
- ONICRA (Onida Individual Credit Rating Agency of India)
- ICRA (Investment Information and Credit Rating Agency)
- SMERA (SME Rating Agency of India)
- India Ratings
The company may choose any rating agency of their choice.
The Ministry of MSME reimburses 75% of the fee charged by the rating agency with the following upper limits.
For a company with turnover
- Up to ₹50 Lakh – ₹15,000.
- Between ₹50 Lakh to ₹200 Lakh – ₹30000.
- Above ₹200 – ₹40,000.
The application form is available on this link – http://www.nsic.co.in/Schemes/documents/ratingform.pdf
The details of the scheme are available on this link – http://msme.gov.in/WriteReadData/Scheme/PCRA_SchemeGuideline.PDF
Scheme for ‘Providing establishment of new institutions (Entrepreneurship Development Institutes of India), strengthening the infrastructure for EDIs under the Assistance to Training Institutions scheme’
This scheme aims to bridge the gap of skill development in the SME sector. Under this scheme, financial and management support is given to training institutions in the form of capital grants for creation of new institutes or for strengthening of existing infrastructure and assistance in conducting entrepreneurship and skill development programmes. Thus, this scheme is beneficial to reduce the regional disparity and raise the educational levels in the youth by providing them with special training. The particulars of the scheme are as under: