More Government Schemes for MSMES in the Textile and Apparel Sector
What / Who / How
Marketing assistance: The government provides assistance for following activities: a) Organising exhibitions abroad and participation in international exhibitions and trade fairs. b) Co-sponsoring exhibitions organised by other organisations/industry associations/ agencies. c) Organising buyer-seller meets, intensive campaigns and marketing promotion events
what & how: The government provides financial assistance of up to 95 per cent of the airfare and space rent for entrepreneurs, albeit the assistance is based on the size and type of the enterprise. The financial assistance for co-sponsoring is limited to 40 per cent of the net expenditure, subject to a maximum amount of Rs 5 lakh.
Marketing intelligence Services Lease:
Under the scheme a Marketing Intelligence Cell acquires and analyses information for both the existing and potential customers to understand the market, determine current and future needs and preferences, attitudes and behaviour of market. It also assesses the changes in business environment that may affect the size and nature of the market. The following information is included in the scheme:
• Database of bulk buyers (product wise), buyers in government/ public sector undertakings.
• Database of rate contracts of various government departments and PSUS. • Information on tenders floated by the government departments and PSUS. • Database of Indian exporters to various countries, with lists of products. • Database of international buyers with lists of products.
• Database of technology suppliers and projects for MSMES.
• Business partner matchmaking (arrange one-to-one meetings for foreign delegations with Indian exporters)
• Market Intelligence reports can be found on the web portals pertaining to several sectors, trends analysis, along with export–import statistics. • International library provision with
global importers’ directory, sector specific booklets, 37 national and international business related magazines/databases/ booklets, and information guides.
• List of micro and small enterprises registered with NSIC for government purchases, raw material assistance, performance and credit rating schemes, and list of MSME industrial associations.
what & how: The MSMES, willing to avail any Marketing Intelligence services of NSIC, can make the request by filling the online forms for the following information:
• Bulk buyers in government/public and private sectors
• International buyers
• Technology suppliers
• Units registered with NSIC under Single Point Registration Schemes • DGS & D registered suppliers.
Credit Linked Capital Subsidy (CLCS) for technology Upgradation:
The revised scheme aims at facilitating technology upgradation by providing 15 per cent upfront capital subsidy to MSMES, including small, khadi, village and coir industrial units, on the institutional finance availed by them for induction of well established and improved technologies in specified subsectors/products approved under the scheme.
Revised CLCS has been amended as follows:
• Ceiling on loans under the scheme has been raised from Rs 40 lakh to Rs 1 crore
• Rate of subsidy has been enhanced from 12 per cent to 15 per cent. • Admissible capital subsidy is calculated with reference to purchase price of plant and machinery, instead of term loan disbursed to the beneficiary unit.
who: Eligible beneficiaries include sole proprietorships, partnerships, co-operative societies, and private and public limited companies in the MSME sector, with a priority to women entrepreneurs.
Design Clinic for Design expertise to MSMES Manufacturing Sector (DESIGN): The government provides funding support for
‘Design Awareness’ workshops and seminars. There is funding support for implementing design projects as well. • Government contribution of Rs 60,000 per seminar and 75 per cent (subject to a maximum of Rs 3 lakh) per workshop.
• Sixty per cent of the total approved project cost or Rs 9 lakh, whichever is less, in case of individual MSME or a group of not more than three MSME applicants.
• Sixty per cent of the total approved project cost or Rs 15 lakh, whichever is less, in case of a group of four or more MSME applicants.
• Forty per cent to be contributed by the applicant MSME/S in both the cases
who: Expert agencies (industry associations, technical institutions or other appropriate bodies) can avail the scheme for conducting seminars and workshops. The beneficiaries may be one MSME or groups of MSMES as prime applicants; or academic Institutes, design companies, design consultants, etc., as co-applicants along with a designated MSME
(prime applicant). Individuals, such as design students can also benefit as co-applicants in collaboration with the academic institution and MSME (prime applicant). how: Expert agencies can directly apply to design clinic centres for conducting workshops and seminars. For design projects, application can be made by MSMES without a design company or along with a design consultant/academic institution by submitting the proposal to Design
Clinic Centre, or by applying online at http://www.designclinicsmsme.org/ or by downloading the form from www. dcmsme.gov.in/schemes
raw Material assistance:
The scheme aims at helping MSMES by way of financing the purchase of raw material (both indigenous & imported). This gives an opportunity to MSMES to focus better on manufacturing quality products. Under the scheme the government provides financial assistance for procurement of raw material up to 90 days. The scheme aims to help MSMES in economics of purchase, like bulk purchase and cash discounts, because all procedures, documentation and the issuance of letter of credit, in case of imports, are taken care of under the scheme.
who & how: All registered MSMES/ entrepreneurs can apply through the prescribed application forms along with requisite fee to regional and branch offices of NSIC.
prime Minister’s employment Generation programme (pmegp): The scheme is implemented by Khadi and Village Industries Commission (KVIC) as the nodal agency at the national level. At the state level, it is executed by the State KVIC Directorates, State Khadi and Village Industries Boards (KVIBS) and District Industries Centres
(DICS) and banks. The Government subsidy under the scheme is routed by KVIC through the identified banks for eventual distribution to the beneficiaries/entrepreneurs into their bank accounts. Under the scheme, the maximum cost of the project/unit admissible in the manufacturing sector is Rs 25 lakh and in the business or service sector is Rs 10 lakh. who: Any individual above 18 years of age can apply for the scheme. The beneficiary must have passed at least VIII standard for projects costing above Rs 10 lakh in the manufacturing sector, and above Rs 5 lakh in the business/ service sector. Only new projects are considered for sanction under the PMEGP. Self Help Groups (SHGS) (including those belonging to Below Poverty Line (BPL), provided that they have not availed benefits under any other scheme), institutions registered under Societies Registration Act, 1860; Production Co-operative Societies, and Charitable Trusts are also eligible.
Janshree Bima Yojana for Khadi artisans: In order to provide insurance cover to Khadi artisans, a scheme of group insurance in the name of Khadi Karigar Janshree Bima Yojana (JBY) was launched. This scheme was formulated by KVIC in association with the Life Insurance Corporation of India (LIC).
Under the scheme, the government gives Rs 20,000 in case of death due to natural causes, Rs 50,000 in case of accidents. The insured sum for permanent disability (loss of two eyes or two limbs) is Rs 50,000 and for partial disability (loss of one eye or one limb) is Rs 25,000.
The add-on benefit of the scheme is the scholarship of Rs 300 per quarter for Khadi craftsmen’ children studying in class 9 to class 12, subject to a maximum of 2 children per family. who: Khadi Karigar (spinners and weavers) aged between 18 -59 years can apply for the scheme but they should be below or marginally above the poverty line.
Market Development assistance: A flexible, growth stimulating and artisan oriented scheme was introduced in the place of the earlier scheme of Rebate. Under the MDA, financial assistance is provided to institutions at the rate of 20 per cent of the value of production of Khadi and Polyvastra, to be shared among the artisans producing institutions and selling institutions in the ratio 25:30:45. MDA allows the Institutions flexibility to use the assistance for improving the outlets, products, and production processes, besides giving incentive to customers. The nature and limit of assistance is approved by the Standing Finance Committee (SFC) of KVIC for the year. who: Only Khadi institutions, having valid Khadi certificate and categorised as A+, A, B and C are eligible to avail MDA grant from KVIC.
exporter Credit insurance: The related scheme are Small Exporters Policy (SEP) and Small & Medium Exporters Policy which aim to provide ease and convenience to MSMES.
The Small Exporter Policy is for exporters with anticipated export turnover below Rs 5 crore. Under the scheme the exporter gets the benefit of 12-month insurance policy. The Small & Medium Exporters Policy offers them 12-month insurance with 90 per cent coverage and loss limit of Rs 10 lakh who & how: Exporters with turnover below Rs 5 crore can apply for the Small Exporter Policy at the ECGC branch offices. On the other hand, exporters of goods and services with investment in plant and machinery as per MSMED Act can apply for Small & Medium Exporters Policy at ECGC branch offices.