MSME sector, the government has
introduced various schemes that
provide financial subsidy to the
eligible enterprises. Some of these subsidy schemes are specifically for certain industrial sectors, while some of them like CLCSS are available for a wide range of industries.
Some of the major subsidy
schemes of the government and
public institutions are provided
below. These can be categorized
as follows:
Subsidy Schemes for Specific
Industries
1)Textile Industry - Technology
Upgradation Fund Scheme
(TUFS) Ministry of Textiles introduced the Technology upgradation fund scheme (TUFS) for textiles and jute industry in April 1999 to facilitate induction of state-of-the- art technology by the textile units.
The benefits under the scheme
include:
5% interest reimbursement of the
normal interest charged by the
lending agency on RTL, or
5% exchange fluctuation (interest
& repayment) from the base rate
on FCL, or 15% credit linked capital subsidy for SSI sector, or
20% credit linked capital subsidy
for powerloom sector (An option
for ‘front ended’ subsidy provided
w.e.f. 1st October, 2005), or
5% interest reimbursement plus
10% capital subsidy for specified
processing machinery.
IDBI, SIDBI and IFCI were the
nodal agencies for Non-SSI textile
sector, SSI textile sector and Jute
sector respectively. However,
w.e.f. 1st October, 2005, 13
additional nodal banks have been
appointed under TUFS for
determining eligibility & releasing
the subsidy for the cases financed
by them.
2)Food Processing Industry -
Scheme for Technology
Upgradation/ Establishment/
Modernization for Food Processing Industries
This Scheme covers the following
activities: Setting up/expansion/
modernization of food processing
industries covering all segments
viz fruits & vegetable, milk
product, meat, poultry, fishery, oil
seeds and such other agri-
horticultural sectors leading to
value addition and shelf life
enhancement including food
flavours and colours, oleoresins,
spices, coconut, mushroom, hops.
The assistance is in the form of
grant subject to 25% of the plant
& machinery and technical civil
work subject to a maximum of
Rs. 50 lakh in General Areas and
33.33% upto Rs. 75 lakh in
Difficult Areas.
3)Leather Industry – Integrated
Development of Leather Sector (IDLS)
The scheme is aimed at enabling
existing tanneries, footwear,
footwear components and leather
products units to upgrade leading
to productivity gains, right-sizing
of capacity, cost cutting, design
and development simultaneously
encouraging entrepreneurs to
diversify and set up new units
The financial assistance under the
Scheme will be investment grant
to the extent of 30% of cost of
plant and machinery for SSI and
20% of cost of plant and
machinery for other units (i.e.
non small scale units) subject to
ceiling of Rs.50 lakh for
technology up gradation /
modernization and/or expansion
and setting up a new unit. The
rate of assistance would be @
20% for all units (both SSI and
Non-SSI) above Rs.50 lakhs subject
to ceiling of Rs.2 crore.
The nodal agency for release of
assistance, monitoring and
interface and coordination with
FIs, Banks and the Government is
SIDBI.
4) Coir industry
The Coir Board runs various
subsidy schemes for the coir
sector, as provided below:
Rejuvenation, Modernization and
Technology Upgradation of the
Coir Industry
A Central Sector Scheme on
Rejuvenation, Modernization &
Technology Up gradation of the
Coir Industry was launched during
2007-08, on a pilot basis, to
facilitate the sustainable
development of the Spinning and
Tiny/Household Weaving Units of
the coir industry by providing
proper work sheds and enabling
replacement of traditional age old
ratts with motorized ratts in the
Spinning sector and replacement
of traditional looms with the
mechanized looms in the Tiny/
Household sector in the first
phase, during XI Plan. The main
objectives of the scheme include
modernization of Coir industry by
adoption of modern technology in
production and processing of Coir
in the spinning and weaving
sectors; Upgradation of the
production and processing
technology for improving the
productivity and quality; and
increasing the efficiency and
productivity for enhancing the
earnings of the workers and
income of spinners/ tiny-household sectors, among others.
The norms of assistance are as
below:
Spinning unit: The financial
assistance or government grant/
subsidy would be 40% of the
project cost subject to a maximum
of Rs. 80,000 (Rupees eighty
thousand only) per unit.
Tiny/ household unit: The
financial assistance or government
grant/subsidy would be 40% of
the project cost subject to a
maximum of Rs. 2,00,000 (Rupees
two lakh only) per unit.
For more details, click here .
Extension of Financial Assistance
to Coir units in the Brown Fibre
sector.
The Coir Board runs a scheme for
financial assistance to the coir
units in the brown fibre sector.
The rate of financial assistance
under the scheme is 25% of the
cost of equipments and
infrastructural facilities subject to
certain ceiling limits based on the
type of unit.
5)Scheme for Extension of
Financial Assistance for
Generator Set / Diesel Engine
The purpose of the scheme is to
give one time subsidy to fibre/
curled coir production units in the
brown fibre sector to carry out
production at periods of power
cut/ low voltage and to ensure
supply of brown fibre and curled
coir to meet the requirements of
rubberized coir products, coir
rope, yarn and mats and matting
sectors.
The quantum of subsidy for one
unit will be 25% of the cost of
generator set subject to a
maximum of Rs.50,000/-. This will
be a one time financial assistance
and will be granted on the basis
of expenditure incurred by the
unit.
6)Other Subsidy Schemes of the
Central Government
Credit Linked Capital Subsidy
Scheme for Technology
Upgradation (CLCSS)
The Scheme was launched in
October, 2000 and revised w.e.f.
29.09.2005. The revised scheme
aims at facilitating Technology
Upgradation of Micro and Small
Enterprises by providing 15%
capital subsidy (12% prior to
2005) on institutional finance
availed by them for induction of
well established and improved
technology in approved sub-
sectors/products. The admissible
capital subsidy under the revised
scheme is calculated with
reference to purchase price of
Plant and Machinery. Maximum
limit of eligible loan for
calculation of subsidy under the
revised scheme is also been raised
Rs. 40 lakhs to Rs. 100 lakh
w.e.f. 29-09.2005.
The Small Industries Development
Bank of India (SIDBI) and the
National Bank for Agriculture and
Rural Development (NABARD) will
continue to act as the Nodal
Agencies for the implementation
of this scheme.
7)Quality Upgradation/
Environment management for
small scale sector through
incentive for ISO 9000 /ISO
14001 /HACCP Certifications
In order to enhance the
competitive strength of the small
scale sector, the Government
introduced an incentive scheme
for their technological
upgradation/quality improvement
and environment management.
The scheme provides incentive to
those small scale/ ancillary
undertaking who have acquired
ISO 9000/ISO 14001/HACCP
certifications. The scheme for ISO
9000 reimbursement in operation
since March, 1994 has now been
enlarged so as to include
reimbursement of expenses for
acquiring ISO 14001 certification
also.
The Scheme envisages
reimbursement of charges of
acquiring ISO-9000/ISO-14001/
HACCP certifications to the extent
of 75% of the expenditure subject
to a maximum of Rs. 75,000/- in
each case. The Scheme is valid
upto 31st March 2012.
To know more details, click here.
Market Development Assistance
Scheme for Micro, Small &
Medium Enterprises
The scheme offers funding for
participation by manufacturing
Small & Micro Enterprises in
International Trade Fairs/
Exhibitions under MSME India
stall; sector specific market studies
by Industry Associations/ Export
Promotion Councils/ Federation of
Indian Export Organisation;
initiating/ contesting anti-dumping
cases by MSME Associations and
reimbursement of 75% of one
time registration fee (w.e.f. Ist
January 2002); and 75% of annual
fees (recurring) (w.e.f. Ist June
2007) paid to GSI (Formerly EAN
India) by Small & Micro units for
the first three years for bar code.
The permissible subsidy is as
below:
The Govt. of India will reimburse
75% of air fare by economy class
and 50% space rental charges for
Micro & Small manufacturing
enterprises of General category
entrepreneurs.
For Women/SC/ST Entrepreneurs &
Entrepreneurs from North Eastern
Region Govt. of India will
reimburse 100% of space rent and
economy class air fare.
The total subsidy on air fare &
space rental charges will be
restricted to Rs.1.25 lakhs per
unit.
8)Financial Assistance on Bar
Code
The basic objective of financial
assistance is to enhance the
marketing competitiveness of
Micro & Small Enterprises (MSEs)
by way of:
Providing 75% of one-time
registration fee and annual
recurring fee (for first three
years) paid by MSEs to GS1 India.
Popularizing the adoption of bar
codes on large scale amongst
MSEs, and
Motivating and encouraging MSEs
for use of bar codes through
conducting seminars on Bar Code,
etc.
9)Subsidy Schemes of NSIC
Raw Material Assistance
Raw Material Assistance Scheme
aims at helping Small Scale
Industries/Enterprises by way of
financing the purchase of Raw
Material (both indigenous &
imported). This gives an
opportunity to SSI to focus better
on manufacturing quality
products. The benefits of the
scheme include:
Financial Assistance for
procurement of Raw Material upto
90 days.
SSI helped to avail Economics of
Purchases like bulk purchase; cash
discount etc
NSIC takes care of all the
procedures, documentation & issue of Letter of credit in case of imports.
10)Marketing Assistance
Under the Scheme, marketing
support is provided to Micro,
Small & Medium Enterprises
through National Small Industries
Corporation (NSIC) to enhance
competitiveness and marketability
of their products, through
following activities:
Organizing International
Technology Exhibitions in Foreign
Countries by NSIC and
participation in International
Exhibitions/Trade Fairs
Organizing Domestic Exhibitions
and Participation in Exhibitions/
Trade Fairs in India
Support for Co-sponsoring of
Exhibitions organized by other
organisations/ industry
associations/agencies
Buyer-Seller Meets
Intensive Campaigns and
Marketing Promotion Events
Other Support Activities.
(Image Credit:Shutterstock)
No comments:
Post a Comment