Govt.

of India
Ministry of Micro, Small & Medium Enterprises

DC-MSME SCHEMES
Presented by
MSME-Development Institute
Rajajinagar Industrial Estate, Bangalore-560010
 MSME stands for Micro, Small & Medium Enterprises

Manufacturing Sector Services Sector

(Investment in Plant & Machinery in Rs.) (Investment in Equipments in Rs.)

Upto 25 lakhs Micro Upto 10 lakhs

> 25 lakhs to 5 Crore Small > 10 lakhs to 2 Crore

> 5 Crore to 10 Crore Medium > 2 Crore to 5 Crore

 MSME Sector – 36 million units

 Employment to over 80 million persons

 Potential to spread industrial growth across the country

 Through more than 6,000 products contributes…..

❖ 8% to GDP

❖ 45% to total manufacturing output

❖ 40% to exports from the country

 Credit Guarantee Fund for

(National Manufacturing Competitiveness Programme)

Design Clinic
Micro and Small Enterprises

Credit Linked Capital Subsidy Incubators

IPR
Trade Related Entrepreneurship Intellectual Property Rights (IPR)
MSME
Assistance and Development

NMCP Schemes
Lean Manufacturing
Competitiveness
Zero Defect Zero Effect (ZED)
Quality Management Standards &
Quality Technology Tools (QMS/QTT)
Cluster Development Programme
(MSE-CDP)
Technology and Quality Upgradation
(TEQUP)
Public Procurement Policy for Micro
and Small Enterprises (MSEs) ICT Information & Communication
NATIONAL
MSME Technology (ICT)
AWARDS
National Awards
MSME Marketing Assistance and
Technology Upgradation (MATU)
 Credit Guarantee Fund for Micro and Small
Enterprises

Credit to Micro and Small Enterprises for loans up to

Rs. 1 Crore without collateral/ third party guarantees

Collateral-free loans for Term loan & Working capital facility for new
or existing MSEs
•75% Guarantee cover of credit facility upto Rs. 50 lakh
•80% Guarantee cover - For Women owned/ operated MSEs
•85% Guarantee cover - Loans up to Rs. 5 lakh for micro enterprises.
•Uniform guarantee at 50% - For entire amount if credit exposure is
above Rs.50 lakh & up to Rs. 1 Crore
 Credit Guarantee Fund for
Micro and Small Enterprises

✓ Corpus of CGTMSE contributed by GoI & SIDBI in 4:1 ratio ~ Rs. 2420 crore

✓ GoI contribution ~ Rs. 1936 crore SIDBI contribution ~ Rs. 484 crore

Total no. of CGTMSE Applications Supported : 21,60,975 credit applications

Total Financial Expenditure : Rs. 858 Crore

Guarantee coverage amounting Rs. 1,03,864 crore (Rs. 1 Lakh Crore)

800000 733361
No. of Applications

600000

400000 348475 350056

288537 273789
200000

0
2007-08 to 2012-13 2013-14 2014-15 2015-16
2011-12 Financial Year
 Credit Linked Capital Subsidy
Scheme

Facilitating technology up-gradation by providing 15% upfront capital subsidy upto a

maximum of Rs. 15 lakhs (i.e., maximum investment in approved machinery is Rs. 1 crore) to
MSE units
➢Subsidy to MSE units on institutional finance availed for induction of
state-of-the-art technology .
➢Facilitates subsidy to 51 sub-sectors/products.
➢Implemented by 12 nodal banks/agencies including SIDBI and NABARD.
➢ Linked with term loans availed by MSEs from Banks or Financial
Institutions.
Not applicable for
•Replacement of existing equipment/technology with same
equipment/technology
•Upgrading with second hand machinery.
 Credit Linked Capital Subsidy
Scheme

Total no. of MSME Units benefitted across the country- 43971 Units
Total Amount of Subsidy Released across the country- - Rs. 2607 Crore
Total no. of MSME Units benefitted in Karnataka - 4115 Units
Total Amount of Subsidy Released in Karnataka- Rs. 207 Crore
900 854.05

Total Amount of subsidy released (Rs. Crore)

18000 16295 800
16000 700
No. of MSE Beneficiaries

14000 600
12000 500 421.48 448.85
10000
400 343.79 322.44
8000 7246
5713 6279 300
6000 5047 216.42
3391 200
4000
100
2000
0
0

Financial Year Financial Year

 Trade Related Entrepreneurship
Assistance and Development

✓Trade Related Entrepreneurship Assistance and Development Scheme For Women

✓Credit to women through NGOs
✓30% grant of loan/ credit - Maximum Rs. 30 lakh
 Zero Defect Zero Effect (ZED)

After ZED assessment, Manufacturing MSMEs can reduce wastages substantially, increase
productivity, expand their market , become vendors to CPSUs, have more IPRs, develop new
products and processes etc.

Component Fees (per enterprise) Subsidies for Enterprises

Assessment/Rating Assessment Fee: 80% - Micro
by empanelled Rs. 10,000/- Desktop Assessment 60% - Small
Credit Rating Rs. 80,000/- ZED rating Complete Assessment 50% - Medium
Agencies Rs. 40,000/- Additional rating for Defence ZED
Rs. 40,000/- Re-Assessment/Re-Rating

Gap Analysis, Hand holding charges: Rs. 1.9 Lakh 80% - Micro
Handholding, 60% - Small
Consultancy for 50% - Medium
improving rating (Additional Rs 10,000/- for
SC/ST owned MSMEs )
Zero Defect Zero Effect (ZED)
 Micro and Small Enterprises Cluster
Development Programme (MSE-CDP)

Creating & developing clusters with group of MSEs for facilitating common
infrastructure, common facilities, R&D

Detailed Project Report (DPR)

 If DPR is finally approved, Rs.10 lakh considered as a contribution by
Special Purpose Vehicle (SPV) towards project.
Hard Interventions - Setting up of Common Facility Centers (CFCs)
 70% grant of project cost
 90% - For CFCs in Clusters with > 50% micro/village/women
owned/SC/ST units
 Maximum Rs. 15 crore
Infrastructure Development (Excluding Cost of Land)
 60% grant of project cost
 80% - For Clusters with > 50% micro/village/women owned/SC/ST units
 Maximum Rs. 10 crore
 Clusters in Karnataka
Total no. of clusters - 12

No. of Common Facility Centres Under progress - 9

No. of Common Facility Centres completed - 3

Details of Implemented & Functioning Clusters

S.No Name of the cluster Total Project cost SPV contribution
(Rs. in Lakhs) (Rs. in Lakhs)
1 Food Processing Cluster, Gulbarga 23 2.3

2 Readymade Garment Cluster, Hubli 122.24 12.23

3 Auto component Cluster, Hubli 485 48.50

 Details of Cluster (Common Facility Centres) Under progress –As on Oct.16
S. Name of the cluster Total Project cost SPV Current Status
No. (Rs. in Lakhs) contribution
(Rs. in Lakhs)
1 Athani Raisin Processing cluster, 1494.57 149.46 In principle approved
Athani Belguam

2 Auto Cluster, Bidar 745.21 74.52 Under Progress

3 Women Entrepreneur park, 3680.98 - In principle approved
Harohalli
4 Printing Cluster, Chamrajpet, 1449.81 217.47 In principle approved
Bangalore
5 Rasin Cluster, Bijapur 1447.20 144.70 CFC Building Construction -Final stage

6 Heat treatment and Engineering 455 45.50 CFC Building Construction completed.
cluster Hubli, Dharwad Tender process for machinery
purchases completed.
7 ELCIA, Bangalore 1441.02 216.35 CFC Building Construction completed.
Tender process for machinery
purchases ongoing
8 Global puffed rice cluster, 717 71.70 Technical Appraisal Report - Progress
Chitradurga
9 Uthopia Cashew cluster , Karwar 1467 147 Technical appraisal Report-Completed
 Public Procurement Policy for Micro
and Small Enterprises (MSEs)

20% target of annual procurement mandatory from MSE Sector by Every Central Ministry
/Department / CPSUs. 4% (out of 20% target of annual procurement) earmarked for
procurement from MSEs owned by SC/ST entrepreneurs.

•Every Central Ministry /Department / PSUs - annual target for 20% procurement from MSEs.
• Sub-target of 4% out of 20% target of annual procurement earmarked for procurement from MSEs
owned by SC/ST entrepreneurs.
•358 items reserved for exclusive procurement from MSEs.
•MSEs quoting price within price band L-1 + 15%, when L1 is from someone other than MSE, shall be
allowed to supply at least 20% of tendered value at L-1 subject to lowering of price by MSEs to L-1.
 Design Clinic Scheme for Design Expertise
to MSME manufacturing sector

To facilitate MSMEs to develop new Design strategies & design related products
and services (Financial Assistance - Rs. 15 lakh to Rs. 40 lakh for project)

Implementing Agencies
➢National Institute of Design, Ahmedabad
➢Indian Institute of Science, Bangalore
➢CSIR, New Delhi

Design project Funding for professionals (% or Maximum ceiling limit whichever is less)
75% of project cost or Rs. 15 Lakh (For individual Micro Unit or group of upto 3 Micro Units)
75% of project cost or Rs. 25 Lakh (For group of more than 3 Micro Units)
60% of project cost or Rs. 25 Lakh (For individual SME Unit or group of upto 3 SME Units)
60% of project cost or Rs. 40 Lakh (For group of more than 3 SME Units)

Design Project Funding for Students (% or Maximum ceiling limit whichever is less)
75% reimbursement of expenses - Maximum Rs 1.5 lakh for final year student projects done for
MSMEs
Design Clinic Scheme for Design
Expertise to MSME manufacturing
sector

Some of the Design Projects done by Students

 Incubators

Supporting innovators in nurturing new innovative ideas for production of

new innovative products which can be commercialized in the market.

➢Fund routed through Host Institutions / Business

Incubator (BIs)
➢BIs - Engineering Colleges & reputed Technical Institutions
approved by O/o DC-MSME
➢75 % to 85 % of project cost (Idea), Rs.6.25 Lakh per idea
➢Up to the maximum of Rs. 8 Lakh.
➢220 HIs/BIs across the country.
➢12 Business Incubators in Karnataka
 Incubators
List of DC-MSME recognized Business Incubators in Karnataka

✓ M.S. Ramaiah School of Advance Studies, Bangalore

✓ Dayanand Sagar College of Enginnering, Bangalore
✓ PES University, Bangalore
✓ Nitte Meenakshi Institute of Technology, Yelahanka, Bangalore
✓ Society for Development of Composites, Bangalore
✓ NMAM Institute of Technology Nitte, Karkalla Taluk
✓ Sri Jayachamarajendra College Engineering-Science & Technology Entrepreneurs Park, Mysore
✓ NITTE University University Enclave, Medical Sciences Complex, Mangalore
✓ NITK-Science & Technology Entrepreneurs’ Park, National Institute of Technology, Surathkal
✓ Manipal Institute of Technology, Manipal
✓ B.V. Bhoomaraddi College of Engineering & Technology, Hubli
 Incubators

GoI - Financial Assistance provided for Ideas : Rs. 26.6 Crores

No. of Ideas Supported through Business Incubators : 720

No. of Business Incubators approved across the county : 220

No. of Business Incubators approved in Karnataka: 13

80 73 12

GoI Assistance (In Crore)

70 Total HI/BIs approved: 220 9.73
10
No. of HI/BI approved

60
8
50 47 6.22
6
40 35
4 2.51 2.68 3.07
25 2.3
30 24 2
20 16
0
10
0
2008-09 2012-13 2013-14 2014-15 2015-16 2016-17
to 2011- Financial Year
Financial Year
12
 Incubators
Some of the Innovative Ideas Supported through Business Incubators in Karnataka

Dayanand Sagar College of Engineering

Priyanka Sexena Development of Non Invasive Portable Vein Locator
Hemant Singh Tomar Gesture based computing platform

M.S. Ramaiah School of Advance Studies, Bangalore

Ipseeeta Jena Cost effective nutraceuticals to combat diabetes, obesity & protein
deficiency
Rizwan Pasha A novel approach towards the development of biodegradable palm
fiber mats along of vitamin A& E as by products
Deepak Bajantri
Development of low cost artificial diets for healthy rearing of silk room

Deepa H N EPN Biocontrol technology to protect crops against insect pests, while
avoiding chemical pesticides
IPR
Intellectual Property Rights (IPR)
MSME

Enhance awareness of MSMEs about

Intellectual Property Rights

➢Patent - exclusive right granted for new

invention. Owner gets right to prevent /stop
others from making, selling or importing without
prior permission.
➢ Geographical Indications (GI) - associated with
characteristic of goods essentially attributable to
its geographical origin.

Financial Assistance for Grant on Patent/GI Registration

➢Domestic patent– Rs.25000/-
➢Foreign patent – Rs. 2 lakh
➢Geographical Indication (GI) registration– Rs. 1 lakh
 Lean Manufacturing
Competitiveness

MSMEs assisted in reducing manufacturing costs through application of Lean

Manufacturing techniques like 5S, Poka-Yoke, SMED, KANBAN, JIT etc.,

➢Formation of Mini Cluster with ideally 10 MSMEs (minimum 6

units)
➢Payment to Lean Manufacturing Consultants Charges – Maximum
Rs. 36 Lakh per mini cluster
Lean Manufacturing
Competitiveness

Units under Lean Manufacturing Competitiveness Scheme in BANGALORE

✓Unnathi CNC Technologies Pvt Ltd, Peenya

✓Progressive Systems, Peenya
✓Accutech Enterprises, Peenya
✓Burji Enterprises, Peenya
✓Sunrise Technologies, Peenya
✓Karthik Industries, Peenya
✓Growell CNC System, Peenya
✓Mighty Machine Tools, Peenya
✓Excellence Technologies, Peenya
✓Lakshmi Prasanna Precitech, Abbigerere
 Quality Management Standards &
Quality Technology Tools (QMS/QTT)

Improving quality of products in MSE sector by implementing

QMS - ISO 9000/18000/22000 & QTT - 6 Sigma, TQM, TPM etc.

Organising Competition–watch (C-watch)

➢Conduct ‘Professional Study’ of ‘threatened product’ - Rs. 2.5 lakh
➢Technical exposure visit by representatives of ‘threatened product’ – Rs. 7.5 lakh
➢Procurement of samples & technical details - Rs. 2.5 lakh
➢Product development by technical bodies- Rs. 5 lakh
➢Popularization of improved product - Rs.1.5 lakh
Implementation of QMS/QTT in selected MSEs
➢Rs. 2.5 lakh per unit (for 100 MSEs) - For Diagnostic Study & QMS/QTT implementation
Monitoring international study missions
➢Rs.2.5 lakh /MSE (Two delegations /year to International Events)adopt latest QMS/QTT
 Technology and Quality Upgradation
(TEQUP) Support to MSMEs

Sensitize manufacturing MSME sector to use of Energy Efficient Technologies, Encourage

MSMEs to acquire Product Certification/Licences from National/International bodies

Capacity Building of MSME Clusters for Energy Efficiency/Clean Development Mechanism

75% of expenditure-Rs. 9 lakh per cluster for conducting cluster level energy audits & model DPRs
50% of expenditure - Maximum Rs.1.5 lakh for Preparation of DPRs for MSMEs on EET projects
Implementation of Energy Efficient Technologies (EET) in MSMEs
25% of project cost - Maximum Rs.10 lakh for implementation of EET
Setting Up of Carbon Credit Aggregation Centres (CCA)
75% of expenditure - Maximum Rs.15 lakh per CCA centre.
Encouraging MSMEs to Acquire Product Certification Licenses from National/ International Bodies
75% of expenditure, towards licensing of product to National/ International Standards
Maximum Rs.1.5 lakh for National certification (BIS,BEE,etc.)
Maximum Rs. 2 lakh for International certification (CE,UL,ANSI,Energy star, etc.)
ICT Information & Communication
MSME Technology (ICT)

Sensitize & encourage MSMEs towards CLOUD COMPUTING for ICT adoption.

Cloud Computing: Subsidy of Rs. 3 lakh (maximum) per unit, for user
charges for a period of maximum three years

Subsidy %
Category 1st 2nd 3rd
Year Year Year
Micro 85% 75% 70%
Small 75% 70% 65%

Medium 60% 55% 50%

Women/NER 85% 75% 70%
 Marketing Assistance and
Technology Upgradation (MATU)

Encourage manufacturing Micro and Small Enterprises (MSEs) to tap

& develop domestic / overseas market opportunities.

Domestic Fairs / Exhibitions

80% Space Rent reimbursement (100% for SC/ST/Women/PH units) Maximum Rs.20000/-

100% Contingency Expenditure reimbursement (Travel, Publicity, Freight) Maximum Rs.10000/-

International Trade Fairs / Exhibitions:
80% space rent reimbursement (100% for SC/ST/Women units) Maximum Rs.1 lakh

100% Economy class air fare reimbursement Maximum Rs.1.25 lakh

Reimbursement on obtaining Bar Code:
75% reimbursement of one time registration fee and Annual recurring fee (for first three years) paid by
MSEs to GS1 India.
Vendor Development Programmes:
National Level Vendor Development Programs-cum-Exhibitions, State Level VDPs
Large scale organizations (BEL, BHEL, TELCO, BSNL, IOC, NHPC, NTPC etc.) interact with MSEs in
registering potential vendors.
 Marketing Assistance and
Technology Upgradation (MATU)

List of International Trade Fairs organised by ITPO (India Trade Promotion Organization), New
Delhi approved by DC-MSME 2016-17

S.
Events Place Month Products
No
1 National Hardware Show Las Vegas(USA) May 2016 Hand tools, DIY products
Kuala Lampur
2 14th Global Indian Festival June 2016 Multi products
(Malaysia)
Johannesburg(South Multi products/processed
3 Africa big seven/SAITEX June/July 2016
Africa) foods
Thessaloniki International
4 Thessaloniki(Greece) Sep 2016 Multi products
Fair
5 Fiera Del Lavnete Bari(Italy) Sep 2016 Multi products
6 India sourcing Fair Moscow, Russia Sep 2016 Multi products
7 AAPEX &SEMA Shoe Las Vegas, USA November 2016 Auto parts
8 AF-L Artigiano De Fiera Milan(Italy) December 2016 Handicrafts
9 India Sourcing Fair Chile Feb/March 2017 Multi products
10 Cairo International Fair Egypt March 2017 Multi products
 Marketing Assistance and
Technology Upgradation (MATU)

List of International Trade Fairs organised by EEPCINDIA (Engineering Exports Promotion

Council), New Delhi approved by DC-MSME 2016-17

S.
Events Place Month Products
No
1 India pavilion at HANNOVER, Germany 25-29 April Industrial Show
HANNOVER Messe 2016

2 INDEE Peru Lima. Peru August 2016 Multi Products

3 India pavilion at Ferretera Gudalajara ,Mexico 8-10 Sep 2016 Tools And Hardware,
Electrical Construction,
Industrial Safety
4 INDEE Kenya Kenya 8-10 November Multi Engineering
Products
5 INDEE Iran Iran Feb 2017 Multi Engineering
Products
 Marketing Assistance and
Technology Upgradation (MATU)

List of International Trade Fairs organised by FIEO (Federation of Indian Export Organisations),
New Delhi approved by DC-MSME 2016-17

S.
Events Place Month Products
No
1 International Handicrafts Italy Apr-May 2016 Handicraft Items, Textiles,
Trade Fair Readymade Garments ,Artificial
Jewellery, Leather
2 Shoppers Stop Expo 2016 Melbourne, May 19-22,2016 Apparels, Fashion Accessories,
Australia Home Textiles Etc
3 Asian International Trade Mauritius 1-10 Oct 2016 Gits And Handicrafts ,Fashion
Fair Jewellery, Accessories , Clothing
And Accessories, Handicraft
Items, Readymade Garments
4 The Chinese New Year Chengdu, Jan-Feb 2017 Home Products, Jewellery And
Shopping Festival China Fashion Accessories, Leather
Goods, Gift Items, Products
 NATIONAL
AWARDS
National Awards
MSME

National recognization of achievements of successful MSME entrepreneurs

Cash prize (1st Prize–Rs. 3 lakh, 2nd–Rs. 2 lakh, 3rd–Rs. 1.5 lakh for most categories),
Certificate & trophy for award winners, Award winners are given Economy class Air fare to &
fro journey

Categories
➢ Outstanding efforts in entrepreneurship (Manufacturing)
➢ Outstanding efforts in entrepreneurship (Service)
➢ Innovation Efforts
➢ Quality Products
➢ Lean Manufacturing Techniques
➢ Special National Award to outstanding Woman Entrepreneur
➢ Special National Award to outstanding SC/ST Entrepreneur
➢ Special National Award to outstanding NER Entrepreneur
➢ Privilege of Award Winners allowing employees to wear labels, pins, ties or other badges
with symbol of Awards
www.udyogaadhaar.gov.in www.msmedatabank.in
 For Starting an Enterprise/Udyog Aadhaar & MSME Data Bank
registration/MSME Assistance.. Visit our Office at….

MSME-DEVELOPMENT INSTITUTE
RAJAJI NAGAR INDUSTRIAL ESTATE
WEST OF CHORD ROAD, BANGALORE-560010
Towards Rajajinagar
Call us: 080 23151581/82/83 Metro/Yeswantpur
W
Mail us: dcdi-bang@dcmsme.gov.in e SIDVIN HOSPITAL
s
Browse to know our schemes: t
www.dcmsme.gov.in RAJAJINAGAR
o
f
MSME-
DEVELOPMENT
FIRE STATION C INSTITUTE
h
Land Mark: PADMAVATHY o GTTC
KALYANA r
Opp. Rajaji Nagar Fire Station MADAPA d
R
STATE BANK OF INDIA,
Opp. Padmavathy Kalyana Mandapa o
IND. ESTATE BRANCH
a
d
Adjacent. GTTC (Government Tool Room & Training Centre)
Towards Magadi Road Toll Gate