More Gov­ern­ment Schemes for MSMES in the Tex­tile and Ap­parel Sec­tor

What / Who / How

Perfect Sourcing - - Cover Story -

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

• Ex­porters

• 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.

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