Micro, Small and Medium Enterprises Schemes

PM EMPLOYMENT GENERATION PROGRAMME (PMEGP) -- Detailed Notes

providing financial assistance to self-employment ventures to generate sustainable employment opportunities for unemployed youth and traditional artisans in rural and urban areas. Objective Background: The scheme was launched in 2022 under the MSME Champions Scheme. It subsumed subsumed Prime Minister’s Rojgar Yojana (PMRY) Rural Employment Generation Programme (REGP) Nature of assistance Available to only new units. Applicable to all viable (technically and economically) micro enterprises in rural as well as urban areas.

No income ceiling is there of assistance for setting up projects. Only one person from a family is eligible for obtaining financial assistance. Digitization: Online processing of applications and allocation of Margin Money directly by the financing branches. Subsidy Entitlement and Bank Finance General Category beneficiary/institution Bank finance Type of Beneficiaries Urban area Subsidy from KVIC Rural area Promoter's contribution

Salient Features Eligibility Any individual , above 18 years Passing VIII standard is necessary for project above Rs.10.00 lakhs for manufacturing or Rs.

PM VISHWAKARMA SCHEME -- Detailed Notes

Purpose: Holistic support to the traditional artisans and craftspeople Type: Central Sector Scheme. Coverage: Rural and urban areas with a focus on saturating districts in a phased manner.

Quick Facts

To enable recognition of artisans and craftspeople as Vishwakarmas and to provide skill upgradation To provide a platform for brand promotion and market linkages to help them access new opportunities for growth. To provide incentives for digital transactions Objective Inter-ministerial: Scheme will be co-jointly implemented by the Union Ministry of MSME, Skill Development and Finance Eligibility criteria: An artisan who is working with hands and tools and engaged in one of the recognized family-based traditional trade (refer to the infographics) in the unorganized sector on self- employment basis and is at least 18 years old Exclusion:

Beneficiaries who have availed loans under similar credit-based schemes of the Centre or State for self-employment or business development in the past 5 years. - Exceptions are made for MUDRA and SVANidhi beneficiaries who fully repay their loans within this period. - Individuals in government service and their family members are not eligible under the Scheme. Cap on family members: The benefits are limited to one member per family (a ‘family’ includes the husband, wife, and unmarried children). Benefits Recognition: PM Vishwakarma certificate and ID card to artisans and craft persons.

Skill Upgradation: Basic Training of 5-7 days and Advanced training of 15 days or more, with a stipend of Rs. 500 per day. Toolkit Incentive: A toolkit incentive of up to Rs. 15,000 in the form of e-vouchers at the beginning of Basic Skill Training. Credit Support: Collateral free ‘Enterprise Development Loans’ of upto Rs. 3 lakh in two tranches. - The first tranche is Rs. 1 lakh, and the second is Rs. 2 lakh with the loan tenures are 18 months and 30 months (respectively). Salient Features Coverage:

Artisans and crafts people engaged in 18 trades like: Armourer Blacksmith (Lohar) Potter (Kumhaar) Goldsmith (Sonar) Locksmith Carpenter (Suthar/ Badhai) Boat Maker Hammer and Tool Kit Maker

• The interest rate is fixed at 5%, with a Government of India subvention of 8%. The Credit Oversight Committee headed by Secretary, DFS may revise the subvention cap of 8% keeping in view the prevailing interest rates. Eligibility for Enterprise Development Loans Eligibility for First Tranche: Completion of basic training. Eligibility for Second Tranche: Beneficiaries who have availed the first tranche , maintained a standard loan account , and have - either adopted digital transactions in their business or - Undergone advanced training.

Incentive for Digital Transaction: Rs. 1 per digital transaction, up to a maximum of 100 transactions per month. Marketing Support: To be provided by the National Committee for Marketing (NCM). NCM will support quality certification, branding, advertising , onboarding on popular e-commerce platforms like Open Network for Digital Commerce (ONDC), etc. Enrolment of beneficiaries: Through Common Service Centres with Aadhaar-based biometric authentication on PM Vishwakarma portal. Inclusivity: Seeks to promote empowerment of women , and those belonging to the marginalised groups like the Scheduled Castes, Scheduled Tribes, OBCs, Specially Abled, Transgenders, residents of NER states, Island Territories and Hilly Areas.

Promoting Social Security Awareness: Efforts will be made to increase awareness (among beneficiaries) about: Prime Minister Jeevan Jyoti Bima Yojana Prime Minister Suraksha Bima Yojana Atal Pension Yojana Pradhan Mantri Shram Yogi Maan-dhan Yojana A three-tier Implementation Framework: National Steering Committee, State Monitoring Committee and District Implementation Committee Credit Guarante: Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) would provide guarantee coverage to eligible Lending Institutions for facilitating credit support to Vishwakarmas.

Purpose: Enhancing the competitiveness and productivity of Micro & Small Enterprises (MSEs) Beneficiaries: Existing Entrepreneurs (in form of a SPV) Funding: The Government funding is shared between Centre and State

Quick Facts

RAISING AND ACCELERATING MSME PRODUCTIVITY (RAMP) -- Detailed Notes

Purpose: Enhancing performance of MSMEs by promoting technology upgradation, innovation, digitization, market access, etc. through active participation of the State Governments Type: Central Sector Scheme

Funding: USD 500 Million would be a loan from the World Bank and the remaining USD 308 Million would be funded by the GoI. Quick Facts Accelerating Centre- State collaboration in MSME promotion and development. Enhancing effectiveness of existing MoMSME schemes for technology upgradation. Strengthening Receivable Financing Market for MSMEs. Enhancing effectiveness of Credit Guarantee Trust for Micro & Small Enterprises (CGTMSE), and promoting guarantee for greening initiatives of MSEs, and women owned MSEs.

Reducing incidence of delayed payments to MSEs. Objective Background: RAMP was formulated by the Centre, for strengthening MSMEs in line with the recommendations made by U K Sinha Committee, KV Kamath Committee and Economic Advisory Council to the Prime Minister (PMEAC). RAMP is launched as a PROGRAMME-FOR-RESULTS (P FOR R) programme. Salient Features

Policy Provider: Through the enhanced capacity for evidence-based policy and program design, to enable the delivery of more effective and cost-efficient MSME interventions to improve competitiveness and business sustainability Knowledge Provider: Through bench-marking, sharing and demonstrating best practices/ success stories by leveraging international experience Technology Provider: Providing access to high-end technology (Artificial Intelligence, Data Analytics, IoT, etc.) resulting in the digital and technological transformation of MSMEs Key roles of RAMP 3 sub-schemes (launched recently) MSME Green Investment and Financing for Transformation Scheme (MSE GIFT Scheme): To help MSMEs adopt green technology with interest subvention and credit guarantee support.

MSE Scheme for Promotion and Investment in Circular Economy (MSE SPICE Scheme): To support circular economy projects through credit subsidy and will lead to realizing the dream of the MSME sector towards zero emissions by 2070. MSE Scheme on Online Dispute Resolution for Delayed Payments (MSE ODR scheme): to synergize legal support with modern IT tools and Artificial Intelligence to address the incidences of delayed payments for MSME. Implementation Strategy Strengthening Institutions and Governance of the MSME Program Support to Market Access, Firm Capabilities and Access to Finance Strategic Investment Plans (SIPs): It would be formulated in collaboration with States/UTs.

The SIPs would include an outreach plan for identification and mobilisation of MSMEs under RAMP, identify key constraints and gaps, set milestones and project the required budgets for interventions in priority sectors including renewable energy, rural & non-farm business, women enterprises etc. SIPs of 10 States viz. Tamil Nadu, Odisha, Sikkim, Maharashtra, Uttar Pradesh, Madhya Pradesh, Mizoram, Andhra Pradesh, Bihar and Karnataka have been approved Flow of fund: Funds would flow through RAMP into the Ministry’s budget against Disbursement Linked Indicators (DLIs) to support ongoing MoMSME programmes, focusing on improving market access and competitiveness.

RAMP ESSA: As part of the requirements of World Bank funding, Environment and Social Assessment (ESSA) is mandatory to verify compliances to Environmental and Social standards by the last mile enterprises covered under the various programmes of the Ministry. Monitoring and policy overview: National MSME Council, headed by Minister for MSME: For overall monitoring and policy review RAMP programme committee, headed by the Secretary of MoMSME: To monitor the specific deliverables under RAMP Improving Centre-State linkages and partnerships Improving access of MSMEs to market and credit Technology upgradation and addressing issue of delayed payments greening of MSMEs Strengthening institutions and governance at the Centre and State RAMPS Scheme Aims at

Programme Management Units (PMU): For day to day implementation - It will be constituted at the National level and in States , comprising professionals and experts competitively selected from the industry. Major Impacts Expected under RAMP Address the generic and COVID related challenges in the MSME sector by way of impact enhancement of existing MSME schemes. Be a job-enabler, market promoter, inance facilitator, and support vulnerable sections and greening initiatives. In States where the presence of MSME s is on the lower side, the programme will usher in larger formalization.

Purpose: To catalyse the flow of institutional credit to Micro & Small Enterprises (MSEs) Lending institutions: Commercial banks, Regional Rural Banks, Scheduled/ Non-Scheduled Urban Co- operative Banks, etc. Eligible enterprises: Both the existing and the new enterprises are eligible to be covered under the scheme. Implementing Authority: Credit Guarantee Fund Trust Quick Facts To strengthen credit delivery system and facilitate flow of credit to the MSE sector. Availability of bank credit without the hassles of collaterals / third party guarantees.

To enable access to finance for unserved, under-served and underprivileged , making availability of finance from conventional lenders to new generation entrepreneurs. Objective

CREDIT GUARANTEE SCHEME FOR MICRO AND SMALL ENTERPRISES (CGMSE) -- Detailed Notes

Background: The scheme was formally launched in 2000. Salient Features

Eligible activity: Manufacturing and services including Trading (Retail / Wholesale Trade) and Educational / Training Institution. Exclusion: SHG and agriculture are ineligible for coverage. Eligible Credit Facility: Fund and non-fund based (Letters of Credit, Bank Guarantee etc.) credit facilities up to 500 lakh per eligible borrower are covered. Annual Guarantee Fee (AGF): AGF will be charged on the guaranteed amount for the first year and on the outstanding amount for the remaining tenure of the credit facilities.

Recently, guarantee fees for loans upto ₹1 crore is reduced by 50% bringing the minimum guaranteed fee to the level of 0.37% pa only. Claim settlement when account turns NPAs: The lending institution may invoke the guarantee in respect of credit facility when accounts turn into Non-Performing Assets. However, initiation of legal proceedings as a pre-condition for invoking of guarantees is now waived for credit facilities upto 10 lakh (earlier 5 lakh). Tenure of Guarantee: The Guarantee cover under the scheme is for the agreed tenure of the term loan/ composite credit. In case of working capital, the guaranteed cover is of 5 years or block of 5 years.

CGTMSE: Established by the Ministry of Micro, Small and Medium Enterprises, and Small Industries Development Bank of India (SIDBI) looks after the implementation of the Scheme. The corpus of CGTMSE is being contributed by the GoI and SIDBI in the ratio of 4:1 respectively. Micro Small Medium Investment in Plant and Machinery or Equipment: Not more than Rs. 1 crore and Annual Turnover: not more than Rs. 5 crore Investment in Plant and Machinery or Equipment: Not more than Rs. 10 crore and Annual Turnover: not more than Rs. 50 crore Investment in Plant and Machinery or Equipment:

Not more than Rs. 50 crore and Annual Turnover: not more than Rs. 250 crore Classification of MSMEs

MICRO & SMALL ENTERPRISES CLUSTER DEVELOPMENT PROGRAMME (MSE-CDP) -- Detailed Notes

To support the sustainability, growth, and build capacity of MSEs To set up Common Facility Centres (for testing, training, raw material depot, effluent treatment, complementing production processes, etc.) Objective Characteristics of the Cluster May go beyond a geographical area and producing same / similar products / complementary products/ services, which can be linked together by common physical infrastructure facilities. A group of enterprises located within an identifiable and contiguous area (to a large extent) or a value chain.

Must address their common challenges 2 components Common Facility Centers (CFCs): Creation of tangible “assets” as CFCs in Industrial Estate Infrastructure Development (ID): Development of infrastructure in new/existing notified Industrial Estate Financial support by the Government: Depending upon the project cost, the Centre for finances 60% or 70% of the project cost for CFC 50% or 60% of the project cost for the ID. Additional 10% assistance (for both CFC and ID) in case of Clusters with more than 50% (a) micro/ village or (b) women owned or (c) SC/ST owned units LWE affected districts NER, and Hill States Island terri tories Aspirational Districts Cap on support: There is no cap on different project cost however Central Government assistance would be limited to the upper threshold only.

Salient Features

Purpose: To facilitate generation of employment opportunities for unemployed youth Type: Central Sector Scheme Nodal implementing agency: KVIC and Coir Board is the implementing Agency for the Coir Units Tenure: Till 2025-26 Quick Facts

lakhs for Service -- Detailed Notes

Sector SC/ST/Ex-Servicemen/ NER/Women/disabled/ Minoritie, Aspirational districts & Transgenders Institutions registered under Societies, SHGs, Charitable Trusts and Production Co-operative Societies Special category beneficiaries Other beneficiaries

Maximum project cost admissible: Rs 50 lakhs in manufacturing sector and Rs 20 lakhs in service sector Balance amount of the total project cost will be provided by Banks as term loan. Support for vulnerable: Inclusion of applicants from Aspirational districts & Transgenders in Special Category applicants for availing higher subsidies. MSME Innovative Scheme (Incubation, Design and IPR) The scheme is a holistic approach that combines innovation in incubation, design intervention and protect IPR to create awareness amongst MSMEs about India’s innovation and motivate them to become MSME Champions.

Salient features of the scheme Aim: To promote and sup- port untapped creativity and to promote adoption of latest technologies in MSMEs. Financial assistance: Up to Rs. 15 lakh per idea and up to Rs. 1.00 crore for relevant plant and machines Incubation Aim: To provide expert advice and cost-effective solution on real time design problems for new product development, its continuous improvement and value addition. Financial assistance: Up to Rs. 40 lakh for design project and up to Rs. 2.5 lakh for student project.

IPR (Intellectual Property Rights) Design Aim: To improve the IP cul- ture in India and take suit- able measures for the pro- tection of ideas, technologi- cal innovation Financial assistance will be provided for Foreign Patent, Domestic Patent, GI Registra- tion etc.

Scheme Background: The scheme was earlier called as Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS). Type: Central Sector Scheme Aim: Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength (CHAMPIONS). Strive to make the smaller units big by helping and handholding, in particular, by solving their problems and grievances MSME Competitive (LEAN) Scheme Aim: To create awareness about LEAN Manufacturing practices and incentivise them to attain LEAN levels.

Lean manufacturing focuses on minimizing waste while simultaneously maximizing productivity. All MSMEs registered with the UDYAM registration portal will be eligible to participate. Also open to SFURTI and Cluster Development Program Schemes. Champions Our Small Hands to Make you LARGE Medium Small Micro