Programmes and Policies of Ministry of

MSME,
Government of India Presented by
Shri. G.S.Prakash, IEDS
Joint Director & Head
MSME-Development Institute, Thrissur
Govt .of . India , Ministry of MSME
MSMEs are Micro, Small and Medium Enterprises

Micro Enterprises Small Enterprises Medium Enterprises

 INDIAN MSME SECTOR

633 LAKH 111 MILLION 38% GDP 40% EXPORT

MSME UNITS EMPLOYMENT
 Size of MSME
INDIA 2019

633 lakh
99.4% Micro 111 Million 8.7% 30%
MSME
Units Employment Population Workforce
Units

23.8 lakh 99. 11% 4. 464 Million 12.9 % 40 %

MSME Micro Units Employment Population Workforce
Units

KERALA 2019
 OVER ALL SUPPORT SYSTEM FOR MSMEs
Central Government

 MSME MINISTRY
 MSME BOARD
 MSME DEVELOPMENT ORGANIZATION DC (MSME) & Field Offices
 Coir Board
 National Small Industries Corporation (NSIC)
 Khadi Village Industries Commission (KVIC)
 Small Industries Development Bank of India (SIDBI)

State Government
 DIRECTORATE OF INDUSTRIES & COMMERCE

 DISTRICT INDUSTRIES CENTRE

 Organizational Structure of O/o DC (MSME)

AS & DC
(MSME)

Autonomou
MSME – DIs MSME – TI MSME – TCs
HTDDTC s Bodies
(30) (2) (4)
(18)

Br. MSME – MSME –

TR (10) TDCs (8)
DIs(28) TS (7)

TCSP (15)
WB
UP COMING 15 NEW TECHNOLOGY CENTREs UNDER TCSP

BHIWADI DURG BADDI VIZAG ROHTAK BHOPAL KANPUR ERNAKULAM

 Auto  General  General  General  General  General  General  General 

Components Engineering Engineering Engineering Engineering Engineering Engineering Engineering

General  PATNA
Engineering

SITARGANJ GREATER SRIPERUMBADUR

BANGALORE PUDUCHERRY IMPHAL
NOIDA

 Auto 
 ESDM  ESDM  AUTO &
Components  ESDM  FRAGRANCE &
AEROSPACE FLAVOURS
MSME- Testing Centres

CHENNAI MUMBAI KOLKATA NEW DELHI

8
 MSME- Testing Stations

01 02 03 04 05

PONDICHERRY HYDERABAD BANGALORE JAIPUR SHOLAPUR

 MSME Field Institutes in Kerala
1) MSME-Development Institute, Thrissur - is the Field Office for Kerala under the
Ministry of MSME , Govt of India
2) NEW TECHNOLOGY CENTRE ANGAMALY ,KOCHI
• Engineering facilities with precision machine tools and allied equipment,
• To designs and manufacture moulds, dies, jigs, fixtures, precision parts and
components etc. ,
• Training programmes up to M Tech level
3) Other Offices in Kerala under M/o MSME
Small Industries Bank of India (SIDBI) at Kochi,
Khadi Village industries Commission (KVIC)
National Small Industries Corporation (NSIC) at Kochi
POLICY FRAME WORK
MSMED ACT 2006
 Became operational on 2nd October 2006
 Prior to 2006- Small scale Industries& Businesses
 After 2006- Micro and Small Enterprises

1
Simplification of registration procedure

2 Constitution of MSME board

3 Industries replaced by enterprises

4 Credit support

5 Penalty for delayed payments.

12
 Revised MSME Classification-
Composite criteria- Investment & Turnover

 In case
enterprise cross
the criteria either MICRO ENTERPRISES
of the category, it 1
will be placed in SMALL Investment < 1 Cr &
higher category ENTERPRISES Turnover < 5 Cr

Investment 2

 Will not be < 10 Cr

placed in lower & Turnover MEDIUM ENTERPRISES
category unless < 50 Cr
it goes below the 3
Investment < 50 Cr &
limit in both Turnover < 250 Cr
investment and
turnover

13
With effect from July 1,2020; Exports will not form part of the Annual Turnover
 NEW MSME REGISTRATION
 MSME Registration process is known As “UDYAM REGISTRATION”
 Registration Portal: www.udyamregistration.gov.in
 This is in force w.e.f. 1st July 2020

• Who can Register?

(1)New Registration: Entrepreneurs who are not yet registered as MSME
(2)Re-registration: Existing entrepreneurs already having registration as EM-II / UAM
(Last date was 31.12.2021)

 Beware of Fake Registration sites!!! Projecting as Govt.

websites!!
14
Calculation of investment in Plant & Machinery or equipment
Existing enterprise where ITR for the FY is filed
The calculation of investment will be based on
the ITR of the FY filed under the IT act 1961

New enterprise where no prior ITR is available

The calculation of investment will be based
on the self-declaration of the promoter of
the enterprise. Such relaxation shall end
after the 31st March of the FY in which files
its first ITR

New enterprise where no prior ITR is available

Under self-declaration, the invoice value of P&M
or equipment, whether purchased first hand or
second hand, shall be taken into account
excluding GST.
 Enterprises which have PAN
Information regarding Turnover shall be linked to the
IT Act or the CGST Act and the GSTIN

Calculation
of Turnover
Enterprises which do not have PAN
The turnover related figures will be considered on self-
declaration basis for a period up to 31st March, 2021. After
31st March, 2021 PAN is made mandatory
Clarification regarding Financial Year in respect of the data of Investment, Turnover and Export
from the IT Department and GSTN for effecting the Classification of MSMEs -reg.
Financial Year of Registration in Data (Investment, Turnover and
Udyam Portal Export) taken or to be and
classification as MSMEs taken from IT
Department and GSTN from the
relevant Financial Year

2020-21 2018-19

2021-22 2019-20

2022-23 2020-21
Benefits of Udyam Registration:
· It will be a permanent registration and basic identification number for an enterprise.

· Along with the Udyam Registration, Enterprises may register themselves on GeM
(Government e-Market place, a portal for G to B) & SAMADHAAN Portal (a portal
to address issues relating to delay in payments)

· MSMEs can also on board on TReDS Platform,(the invoices of receivables are traded
on this platform)

· MSMEs can avail the benefits of Schemes of Ministry of MSME such as Credit
Guarantee Scheme, Public Procurement Policy, additional edge in Government
Tenders & Protection against delayed payments etc.

· Becomes eligible for priority sector lending from Banks.

The Ministry of Micro, Small & Medium Enterprises (MSME) on
August 9, 2021 has issued the Inclusion of urban street vendors in
MSME category. It is clarified that the Street Vendors can register
as retail trades on Udyam Registration (UR) portal.

The benefits to Retail and Wholesale trade MSMEs are to be

restricted to Priority Sector Lending only.

The list of eligible additional activities under NIC Code 45,46 and 47
are as follows: -

• 45 Wholesale and retail trade and repair of motor vehicle and

motorcycles 
• 46 Wholesale trade except of motor vehicles and motor cycles 
• 47 Retail Trade Except of Motor Vehicles and motor cycles 
 Public Procurement Policy (PPP)
EMD Exemption, Free
01 tender document and
Price Preference 03 All enterprises registered
with Udyam Registration 05

• Minimum 25% to be A sub-target of 4% of

Preferred Price band of

02 04
procured annually by procurement from SC /
Central ST owned MSEs. L1 + 15% to MSE’s
Ministry/Department/ 3% for women
Central PSUs from enterprises
MSEs

“Works contract” not covered under Public Procurement Policy

22
 358 items continue to be reserved for exclusive purchase from MSEs.

 Defense armament imports / weapon systems, missiles, etc exempted from purview of this policy .
(Due to its unique nature )

Beneficiaries
All enterprises registered with any of the following :
• Micro and Small Enterprises (as per MSMED act) ; Khadi, Village Industries Commission; Coir board ;
Khadi and Village Industries Board ; NSIC registered units; Directorate of Handicrafts and Handloom ;
Any other body specified by Ministry of MSME; With effect from 18.09.2015, MSEs registered under UAM/UR
are also eligible to avail the benefits under Policy.
 Contd…..

Benefits under PPP

MSEs will be facilitated by tender sets free of cost

Exempting MSEs from payment of earnest money

Adopting e-procurement to bring in transparency in tendering

process

358items are reserved for exclusive procurement from MSE’s

24
OTHER IMPORTANT POINTS

 PPP is not applicable to traders.

 The works contract is not covered under PPP.
 The policy does not provide benefit for exemption from Security Deposit.
 The PPP 2012 is applicable only to Central Ministries/Departments/CPSUs
 Policy is applicable to all the Govt Ministries/ Departments/CPSUs irrespective of volume
and nature of procurement and is not exempted from policy those having meagre value
of total procurement
 Installation of any object falls under service category and may avail the benefits of PPP.
25
 Preference to “Make in India”

(DPIIT Order No:- P-45021/2/2017-B.E.-II Dated 16th September, 2020)

 PREFERENCE TO MAKE IN INDIA
“Public Procurement (Preference to Make in India), Order 2017”
(Dated 16th September 2020)
As per the Order, procuring entities should not impose restrictive tender conditions that discriminate against
domestic manufacturers
Categories of Goods/Services suppliers Without special approval, Govt will
not issue global tender enquiry for
Class I Supplier – 50% or more local content
purchases of less than Rs. 200 Crore
Class II Supplier- 20% - 50% local content
Only suppliers with more than 20%
Non local Supplier- 20% or less local content
local content can participate in such
As per PPMII- Government will give preference to Class 1 suppliers bidding process.
Central Public Procurement Portal
 It is a single point access to the information on procurements made
across various Ministries and the line Departments.
 URL https://eprocure.gov.in
 Platform for publication of tender and bid award details by Central
and State Government Ministries, Departments and Organizations,
PSUs and PSBs
 The system can be adopted for all kinds of procurement such as Goods,
Services & Works.
Government – E- Marketplace (GeM)

29

www.gem.gov.in
Government e Marketplace – The Genesis
• A one-stop online procurement portal for all Government Buyers
including Central/State ministries, Departments, Bodies & PSUs.
Launched on 9th August 2016. (https://www.gem.gov.in/).

• Rule 149 of GFR amended to “Procurement of Goods and Services The government is committed
by Ministries or Department will be mandatory for Goods or to curbing corruption. One of
the key aspects of this
Services available on GeM” objective is to minimize
Governments human
transactional interface.
• GeM aims to enhance efficiency, transparency, inclusiveness in
public procurement.

• It provides the tools of e-Bidding, Reverse Auction and Direct

Procurement to facilitate Government users achieve the best value
for their money.
Challenges faced by MSMEs

Reasons for inadequate finance to MSMEs

High risk perception Inadequate collateral

High cost of acquisition /

serving

Lack of formal financial

documentation

The Trade Receivables Discounting System/platform aims to bridge the financing gap between
MSMEs and formal credit institutions

*According to IFC MSME report, 2012

Trade Receivables Discounting System (TReDS)

o What is TReDS?
 TReDS an electronic platform for facilitating the financing /
discounting of trade receivables of Micro, Small and Medium
Enterprises (MSMEs) through multiple financiers.
o What is the need for TReDS?
 MSMEs play an important role in the economic fabric of the country.
However, they face constraints in obtaining adequate finance,
particularly in terms of their ability to convert their trade receivables
into liquid funds. Moreover, this is a pan-India issue. TReDS has been
brought in to help ease this pain endured by MSMEs.

2
 Who can participate?

Only MSMEs allowed

Sellers

- Banks, NBFC and other

financial institutions as Participant Government Departments,
permitted by the Reserve s PSUs, Corporates and any
Bank of India (RBI) other entity

Financiers Buyers

3
TReDS platform brings MSMEs, their buyers and financiers on a single platform

Buyer
Buys good from seller and
has to pay at the end of the
credit period

TReDS platform enables buyers to accept

invoices uploaded by sellers
TReDS TReDS platform settles repayment from
buyer to financier

Platform
TReDS platform enables financiers to buy invoices from sellers and also
settles the payment from financier to seller

Seller Financier
Provides goods / services to large “Buys” seller’s invoices and
buyers and raises invoice on buyer assumes ownership of
for payment after credit period receivables to be paid by buyer
on due date
Trade Receivables Discounting System (TReDS)

 "MSME Units are requested to Onboard on

TReDS Platform.
 Three available platforms are
1. www.rxil.in 
2. www.m1xchange.com 
3. www.invoicemart.com 
 Delayed Payment Act for MSEs

Under MSMED Act -2006, protections are offered for timely payment of goods
and services by the buyers to MSEs.
• State govt. has established a Micro and Small Enterprises Facilitation Council
(MSEFC) under the chairmanship of Commissioner of Industries, GOK, with the
representatives from Industry Associations, Banks, etc.
• In case of delay in payments beyond 45 days, the MSE may approach the Council
for dispute resolution, in accordance with the sections 15 to 24 of MSME Act,
2006.
 Nature of assistance

Where any Buyer fails to make payment to MSE on

their supplied Goods or Services, is liable to pay
compound interest with monthly rests on the
amount from the appointed day or immediately
following the date agreed upon at three times of the
bank rate notified by the RBI.
 samadhaan.msme.gov.in

 An initiative for filing online application by the supplier MSE unit against the buyer of
goods/services before the concerned MSEFC of his/her State/UT.
 These will be viewed by MSEFC Council for their actions.
 These will be also visible to Concerned Central Ministries, Departments, CPSEs, State
Government, etc. for pro-active actions.
Marketing Support Schemes
 PROCUREMENT & MARKETING SUPPORT SCHEME

Participation of individual Capacity building of MSMEs Organizing State Organizing/Participation

MSEs in domestic trade International/ in modern packaging Level/ National Level
National Seminars Vendor Development
in trade fairs /
fairs/ exhibitions across the technique:
country Programme. exhibitions by Ministry
80 % of cost will be paid to of MSME
80% space rent for General empanelled agency/
and 100% for packaging consultant for Gen; Participating units will
SC/ST/Women/PH/ 100% for SC/ST/W/PH limited be provided stalls at
to Rs. 1.5 lakhs for Green 80% subsidy and 100%
From Rs.80000/- to Max up Packaging and Rs. 1 lakhs for for SC/ST/Women/PH
to Rs. 1.5 Lakhs ordinary packaging.
 International Co-operation
• Visit of MSME delegations in international exhibitions/ trade fairs, conferences/ summits/workshops
etc
• Holding international conferences/ summits/ workshops/ seminars to be organized in India by the
Industry Associations/ Government organizations.
• Participation of MSME delegations in International exhibitions, trade fairs and buyer-seller meets in
foreign countries/ resource persons
IC Scheme have following three sub-components:
1. Market Development Assistance (MDA) - (both Physical and Virtual Mode)
2. Capacity Building of First Time Exporters (CBFTE)
3. Framework for International Market Intelligence Dissemination (IMID)
 MSME MART (initiative by NSIC)
A global business to Business portal facilitating business services to MSMEs through digital
interventions

Create your company’s webpage in minutes. Keywords based unlimited tender alert

Display products & services 24 x 7 Trade leads

Connect with buyers and suppliers Request for quotation

Information on Events and

Exhibitions
 IPFC set up in MSME-DI, Thrissur
Services offered
• General information and guidance on all
forms of IPRs like patents, trademarks,
designs, GIs etc.
• Status check of existing patents ie; whether a
patent is valid, abandoned or expired.
• Prior art search to know the already existing
knowledge on technology domain
Various Credit measures available
for MSME Sector
 Collateral Free Loan- CGTMSE

All fund (term loan,

MSE loans for projects Guarantee is Both
working capital)/
up to Rs. 2 crore ( as per given to Manufacturing,
scheme guidelines), non-fund based
Member Service sectors
which are not backed (letter of credit/bank
Lending & retail trade are
with collateral and third guarantee) facilities
Institutions (MLI) covered.
party guarantee covered.

Credit for educational / training institutions and SHGs For more details www.cgtmse.in
are not eligible for coverage.
 Debt restructuring for MSMEs
As per the existing RBI Guidelines banks and financial institutions satisfying the following conditions shall be permitted to
restructure their MSME debts:

If the total borrowings

from all banks and

01 NBFCs by the borrower

does not exceed Rs 50
crores.
03

MSME accounts that hold a status More than 5 lakh MSME accounts

02
of “standard asset” in the books already restructured and Govt
as on 31st March 2021 expects another 25 lakh accounts
to be restructured

FM announced to give a further extension to the scheme for MSMEs till 31st March 2022
 EMERGENCY CREDIT LINE GUARANTEE SCHEME (ECLGS)
ECLGS 100% guarantee with respect to loans to borrowers having credit
1.0 outstanding of Rs.50 crores and days past due of up to 60 days as on
29/02/2020

100% guarantee with respect to loans to borrowers belonging to

ECLGS identified sectors and healthcare sector having credit outstanding
2.0 between Rs.50 crores – Rs.500 crores and days past due of up to 30
days as on 29/02/2020

ECLGS

100% guarantee with respect to loans to borrowers in the hospitality,

ECLGS travel & tourism, leisure & sporting and civil aviation sectors having
3.0 days past due of up to 60 days as on 29/02/2020

100% guarantee with respect to loans to borrowers in eligible

ECLGS
hospitals/nursing homes/ clinics/ medical colleges/ units engaged in
4.0 manufacturing of liquid oxygen, oxygen cylinders etc. for setting up of
on-site oxygen producing plants.
Nature of Facility:

Under ECLGS 1.0 & 3.0

Working Capital Term Loan

Under ECLGS 2.0 & 4.0

Working Capital Term Loan

Non fund based facility
Combination of both fund & non- fund
 Quantum of Finance
ECLGS
1.0 20% of total credit outstanding up to Rs.50 crores as on 29/02/2020

ECLGS
20% of total credit outstanding up to Rs.500 crores as on 29/02/2020
2.0

ECLGS

ECLGS 40% of total credit outstanding subject to a cap of Rs.200 crore per
3.0 borrower

ECLGS
4.0 Maximum 2 crore per borrower
 Tenure
ECLGS
1.0 4 years from the date of first disbursement

ECLGS
5 years from the date of first disbursement of fund based facility or
2.0 first date of utilization of non fund based facility, whichever is earlier

ECLGS

ECLGS 6 years from the date of first disbursement

3.0

ECLGS
5 years from the date of first disbursement of fund based facility or
4.0 first date of utilization of non fund based facility, whichever is earlier
Rate of Interest

For ECLGS 1.0, ECLGS 2.0 & ECLGS 3.0

MSMEs
Linked to RLLR, subject to a minimum RoI of 7.5% and maximum up to 9.25%

ECLGS 4.0

 Linked to RLR/ MCLR with maximum cap at 7.5% pa

 Interest to be served as and when applied
 Penal interest as per extant bank’s guidelines would be charged for default in payment of installments &
interest within stipulated time period
 No penal interest due to any non-compliance of the already accepted covenants on existing credit
facilities may be charged on this product during the sanction time
 Asset Restructuring Module for MSME (ARM-MSME)

• Asset Restructuring Module for MSME (ARM-MSME) is a web-based Do It Yourself (DIY)

module to help MSME entrepreneur(s) prepare restructuring proposal themselves and submit to
their bank(s).
• It is a web portal developed by Small Industries Development Bank of India (SIDBI) and its
associate, India SME Asset Reconstruction Company Ltd. (ISARC).
Web portal of ARM-MSME can be accessed from https://arm-msme.in
Subordinate Debt for Stressed MSMEs (CGSSD )
https://subdebt.cgtmse.in/SUBDEBT/jsp/Home.jsp

• To provide Sub-debt support in respect of restructuring of MSMEs

• Repayment tenure- 10 years
• Moratorium on payment of principal is 7 years
• MSME promoters will be provided credit equal to 15% of their stake or Rs.75
lakh, whichever is lower
• Scheme validity extended up to 30/09/2021
• Eligible borrowers-
1) MSME Accounts which are Stressed (SMA 2 and NPA) as on 30.04.2020
2) MSMEs whose accounts have been Standard as on 31.03.2018
3) MSME should be in Operation either as Standard Accounts or NPA during FY
2018-19 & 2019-20
Infrastructure Development
 MSE-CLUSTER DEVELOPMENT

A cluster is a group of enterprises located within an identifiable and as far as practicable,

contiguous area or a value chain that goes beyond a geographical area and producing same /

similar products / complementary products/ services, which can be linked together by common

physical infrastructure facilities that helps them to address their common challenges.
 Components
Common Facility Centers: Creation of “tangible assets” such as Common
Production / Processing Centre, Design Centers, Testing Facilities including Plug &
Play Facilities with Backward / Forward Linkages etc. GoI grant - 70% of the project
cost (Max 20 Cr)

Infrastructure Development: Development of land, roads, drainage, power

distribution etc. in new / existing industrial (multi-product) areas / estates / .
Flatted Factory Complex GoI grant - 60% of the Project cost Project cost
not exceeding Rs.10 cr. for IE and Rs.15 Cr for FFC
Other Schemes by Government of India
 Pradhan Mantri MUDRA Yojana (PMMY)

01
Scheme launched by the Hon’ble Prime Minister on
April 8, 2015

02
Loans up to 10 lakh to the non-corporate, non-
farm small/micro enterprises

03
Loans are given by Commercial Banks, RRBs, Small
Finance Banks, MFIs and NBFCs.

You can simply impress your audience and add a unique

zing and appeal to your Presentations.
 Stand-up India The entrepreneur
may be engaged in
manufacturing,
services or the
Bank loans between 5 trading sector.
To promote Rs 10 lakh and Rs 1
entrepreneurship Crore
amongst the 3
schedule caste
/schedule tribe and
1 women

4 Composite loan of
Loans under the 75% of the project
scheme is available cost inclusive of
2 To provide handholding for only Green field term loan and
support to potential Projects working capital.
entrepreneurs
 PSB Loans in 59 minutes
 An online marketplace to cater to various financial aspirations of individuals and businesses.
 The Platform is processing loan applications for In-principle approval within 59 minutes.

Platform is integrated
with CGTMSE to check Borrower gets an In-
Rate of interest starts eligibility of borrowers) principle approval letter
from 8.5% in less than 59 minutes

Business Loan In-principle

Unique platform that approvals, with /without
ensures seamless In- collateral, are currently
principle loan approval provided for value from INR 1
PSB Loans Lac to INR 5 Crore

Post receiving In-principle The borrower has

approval letter, the loan is been given the
expected to be sanctioned/ flexibility to choose
disbursed in around 7-8 working
lender
days
UDYAMIMITRA

A credit delivery platform enabling

ease of access to MSMEs financial and
non-financial service needs
National Small Industries Corporation
 Schemes offered by NSIC
Procurement &
National
Marketing
SC/ST Hub
Support

Exhibition &
Credit Support
Event
Management

Marketing
Infrastructure
Support
 For more details visit:

Manager
NSIC LTD, S-67,GCDA COMMERCIAL COMPLEX,
MARINE DRIVE,SHANMUGHAM ROAD, KOCHI-
682031
Zip Code -682031
Ph- 0484-2381850/2368149
Fax- 0484-2380155
Email: bococh@nsic.co.in
SIDBI ( Small Industries Development Bank )
T BALAJI
AGM
9786630641
tbalaji@sidbi.in
Kochi BO - M T Plaza, Ground floor, 64/2842, Kaloor-Kadavanthara
Road, Kochi - 682017 Kerala, INDIA Tel No : 0484-4025313,
4030313, 4028313
General Services/ Grievances
Redressal Portal

State Control Room- 0487-2953300

 MSME-Development Institute , Thrissur
Kanjani Road, Ayyanthole P:O
Thrissur-680003
Tel: 0487-2360536, 0487-2360216
Email: dcdi-thrissur@dcmsme.gov.in
www.msmedithrissur.gov.in
State Champions Control Room- 0487-2953300
www.champions.gov.in
THANK YOU
Thank you