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    Presentation on Activities of MSMEDI, Mumbai

    NMCP SCHEMES

    Other MSME Schemes

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    MSME-DI, Mumbai

    for

    MSME Development

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    MSME-DI, MUMBAI is the field Office of Ministry of MSME,

    Govt. of India, in the state of Maharashtra for promotion and

    development of MSMEs by extending various policy promotion

    measures, programmes and schemes.

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    MSME-DI, Mumbai : Jurisdiction

    1) Ahmednagar

    2) Aurangabad3) Beed4) Dhule5) Hingoli6) Jalgaon7) Jalna8) Kolhapur

    9) Latur10) Mumbai11) Nanded12) Nandurbar13) Nashik14) Osmanabad15) Parbhani16) Pune

    17) Raigad18) Ratnagiri19) Satara20) Sangli21) Sindhudurg22) Solapur23) Thane

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    Number 26.1 Million MSMEs

    Employ 59.5 Million People

    Give 45% of Industrial Production *

    Account for 40%+ of Exports #

    Contribute 8% to GDP

    Exports: Rs. 177 Bn USD

    Production: Rs. 5.9 lakh cr. ($ 140 Bn)

    No. of Items Mfg. in MSME : 8000

    No. of Women Entrepreneurs : 7.4%

    Rural Enterprises : 50%

    INDIAN MSMEs - STRENGTHS

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    Micro, Small & Medium Enterprises Development Act 2006

    Act enacted in Parliament in 2006, effective from 02nd October 2006.

    Objective of the act :

    facilitating the promotion and development and Enhancing thecompetitiveness of micro, small and medium enterprises

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    Micro, Small & Medium Enterprises Development Act 2006

    Classification of Enterprises

    Concept of Enterprises as against Industries

    Enterprises classified broadly into :

    i) Enterprises engaged in the

    manufacture / production of goods

    pertaining to any industry; &

    ii) Enterprises engaged in providing /

    rendering services

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    Classification of EnterprisesMANUFACTURING ENTERPRISES

    Manufacturing Enterprises defined in terms of investment inplant & machinery and further classified into :

    - Micro Enterprises - Investment upto Rs.25 Lakh

    - Small Enterprises - Investment above Rs.25 Lakhto Rs. 5.0 Crores

    - Medium Enterprise - Investment above Rs.5 crore &up to Rs.10 Crores

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    Classification of EnterprisesSERVICE ENTERPRISES

    Service Enterprises defined in terms of investment inequipment and further classified into :

    - Micro Enterprises - Investment upto Rs.10 Lakh

    - Small Enterprises - Investment above Rs.10 Lakh &upto 2 Crores

    - Medium Enterprise - Investment above 2 Crores upto 5

    crores

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    Management ConsultancyManagement TrainingsSeminars & WorkshopsFeasibility StudiesGuidance for Improvement ofManagement Capability

    Technical ConsultancyProduct SelectionProject ReportSelection of Raw MaterialSelection of MachinerySelection of Technology

    Consultancy

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    Major Services Provided

    Consultancy

    Economic Information

    Entrepreneurship Development

    Marketing Assistance

    Technology & Quality Upgradation

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    Motivation & Guidance

    Product selection

    Training Programmes & Campaigns

    Special Programmes for Women & Economically /Socially Backward Class

    Entrepreneurship Development Programmes includes

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    Industrial Potential Survey

    Feasibility Report

    Industrial Profile of State & Districts

    Collection & Dissemination of Statistics of MSMEI

    Advice on policy issues

    Economic Information Services

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    Marketing Assistance

    Buyer Seller Meets

    Vendor Development Programmes

    Exhibitions

    Seminars

    Ancillary Development

    Registration under Sub-Contract Exchange

    Participation in International Trade Fairs

    Special Global Vendor Development Programme

    Market Development Assistance

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    Technology & Quality Upgradation

    Workshops, Training Programmes & Guidance for Upgradation of

    Technology

    Pollution Control & ODS Phase Out.

    Meetings with Foreign Delegations for Technology Transfer

    Programmes on ISO 9000 & TQM, Standardization etc

    Guidance on Incentives

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    Assistance forExport Promotion Export Market Information

    Export Management Programmes

    Packaging for Export Trainings

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    Common Facility Services

    Workshop Facilities

    Services for Industrial Designing

    Product Development

    Free Library Facility

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    Technical Assistance to various Government Agencies

    National Small Industries Corporation

    Bureau of Indian Standards

    State Directorate of Industries etc.

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    Steps Involved for self employment DECISION TO BE SELF-EMPLOYED SELECTION OF THE PRODUCT

    LOCATION OF THE ENTERPRISE

    PREPARATION OF THE PROJECT REPORT

    REGISTRATION

    FINANCE (TERM LOAN)

    IMPORTANT CLEARANCES & LICENSES/OFFICES

    LAND AND BUILDING

    FINANCE (WORKING CAPITAL)

    RECRUITMENT OF PERSONNEL

    INSTALLATION OF MACHINERY

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    Steps Involved for self employment

    POWER CONNECTION/WATER SUPPLY

    PROCUREMENT OF RAW MATERIALS

    PRODUCTION

    MARKETING

    REPAYMENT OF LOANS PROFIT GENERATION

    AVOIDING SICKNESS

    MODERNISATION AND UPGRADATION OFTECHNOLOGY.

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    Schemes underNATIONAL

    MANUFACTURINGCOMPETITIVENES

    S PROGRAMME(NMCP)

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    Support for Entrepreneurial and Managerial Development

    (Incubators)

    S t f E t i l d M i l D l t

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    Support for Entrepreneurial and Managerial Development

    (Incubators)

    S t f E t i l d M i l D l t

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    Support for Entrepreneurial and Managerial Development

    (Incubators)

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    Enabling Manufacturing Sector to be competitive through

    Quality Management Standard & Quality Tech. Tools

    (QMS/QTT)

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    National Campaign for Investment in Intellectual Property

    Rights(IPR)

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    National Campaign for Investment in Intellectual Property

    Rights(IPR)

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    - Marketing Support/Assistance to MSMEs (Bar Code)

    - National Programme on Application on Lean Manufacturing (LEAN)

    - Mini Tool Rooms proposed to be set up by Ministry of MSME (MTR)

    - Promotion of ICT in Indian Manufacturing Sector (ICT)

    - Technology & Quality Upgradation Support (TECH UP)

    - Design Clinic Scheme for design expertise to Manufacturing sector (DESIGN)

    - Marketing Assistance/SMEs and Technology Up gradation Activities

    Ministry of MSME in co-operation with TIFAC (tec inf and forecasting and

    assessment council ) /CSIR (MARKETING)

    Other NMCP Schemes

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    Other Schemes forDevelopment of MSMEs

    MSE Cluster Development Programmes

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    MSE-Cluster Development Programmes

    Clusters are defined as sectoral and geographical concentration of micro, small &

    medium enterprises with interconnected production system leading to firm/unit level

    specialization and developing local suppliers of material inputs and human resources.

    Availability of a local market/intermediaries for the produce of the cluster is also a

    general characteristic of a cluster

    This Ministry runs various schemes and programmes for promotion and development

    of micro & small enterprises. The assistance through these schemes and programmes

    is provided for individual or collective development of MSE. The strategy is now tosubsume the essential features of the schemes having collective approach for

    development of clusters such as Scheme for Integrated Infrastructural Development

    and Scheme for setting up of Testing Centres/ programmes under SICDP. Although the

    objective of SICDP is to proved assistance to MSE for common purpose, it is also not

    less important to strengthen industrial units located in the cluster individually. There

    are schemes of Ministry of SSI for credit, technology upgradation, quality certification,

    such as, Credit Guarantee Scheme for investment, Credit Linked Capital Subsidy

    Scheme for technology upgradation, ISO 9000/14001 reimbursement scheme for

    certification, etc. through which assistance is provided to an individual micro & small

    enterprises. Under the new approach, the emphasis is to dovetail all such schemes

    under SICDP for the overall development of MSE and optimum utilisation of resources.

    Scheme for Capacity Building

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    Scheme for Capacity Building

    Scheme of International Cooperation

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    Scheme of International CooperationIntroductionTechnology infusion and/or upgradation of Indian MSMEs, their modernisation and promotion of their

    exports are the principal objectives of assistance under the Scheme of International Cooperation.The Scheme covers the following activities:

    (i) Participation by Indian MSMEs in exhibitions, fairs and buyer-seller meets in India, in whichthere is international participation.

    (ii) Deputation of MSME business delegations to other countries for exploring new areas oftechnology infusion/upgradation, facilitating joint ventures, improving market of MSMEproducts, foreign collaborations, etc.

    (iii) Holding international conferences and seminars on topics and themes of interest to theMSME.

    2. Eligible OrganisationsBesides the Ministry of MSME, events under the Scheme can be organised by:

    (a) State/Central Government Organisations;

    (b) Industry/Enterprise Associations; and

    (c) Registered Societies/Trusts associated with the MSME.

    3. Eligibility ConditionsThe eligibility conditions financial assistance under the Scheme are:

    (a) The organisation should be suitably registered (i.e., companies under theCompanies Act, societies under the Societies Act, etc.) with the primaryobjective of promotion and development of MSME.

    (b) The organisation must be engaged in such activities for at least last 3 years and have agood track record.

    (c) The organisation should have regular audited accounts for the past 3 years.

    (d) Events, for which financial support under the Scheme is sought, must have significantinternational participation.

    C dit Li k d C it l S b id S h (CLCSS)

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    Credit Linked Capital Subsidy Scheme (CLCSS)

    The revised scheme aims at facilitating technology up gradation by providing 15 per cent upfrontcapital subsidy with effect from the 29 th September, 2005 (12 per cent prior to 29.09.2005) to SSIunits, including tiny, khadi, village and coir industrial units (hereinafter referred to as SSI units), oninstitutional finance availed of by them for induction of well established and improved technologies inthe specified sub-sectors / products approved under the scheme.

    Scope of the Scheme

    3.1 The scheme would cover the following technology needs / products/sub - sectors:

    i) Bio-tech Industry

    ii) Common Effluent Treatment Plant

    iii) Corrugated Boxes

    iv) Drugs and Pharmaceuticals

    v) Dyes and Intermediates

    vi) Industry based on Medicinal and Aromatic plantsvii) Plastic Moulded/ Extruded Products and Parts/ Components

    viii) Rubber Processing including Cycle/ Rickshaw Tyres

    ix) Food Processing (including Ice Cream manufacturing)

    x) Poultry Hatchery & Cattle Feed Industry

    xi) Dimensional Stone Industry (excluding Quarrying and Mining)

    xii) Glass and Ceramic Items including Tiles

    xiii) Leather and Leather Products including Footwear and Garments

    xiv) Electronic equipment viz test, measuring and assembly/ manufacturing, Industrial process control;Analytical, Medical, Electronic Consumer & Communication equipment etc.

    xv) Fans & Motors Industry

    xvi) General Light Service(GLS) lamps

    xvii) Information Technology (Hardware)

    xviii) Mineral Filled Sheathed Heating Elements

    xix) Transformer/ Electrical Stampings/ Laminations /Coils/Chokes including Solenoid coils

    xx) Wires & Cable Industry

    xxi) Auto Parts and Components

    xxii) Bicycle Parts

    xxiii) Combustion Devices/ Appliances

    xxiv) Forging & Hand Tools

    xxv) Foundries Steel and Cast Iron

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    )

    xxvi) General Engineering Works

    xxvii) Gold Plating and Jewellery

    xxviii) Steel Furniture

    xxx) Toys

    xxxi) Non-Ferrous Foundry

    xxxii) Sport Goods

    xxxiii) Cosmetics

    xxxiv) Readymade Garmentsxxxv) Wooden Furniture

    xxxvi) Mineral Water Bottle

    xxxvii) Paints, Varnishes, Alkyds and Alkyd products

    xxxviii) Agricultural Implements and Post Harvest Equipment

    xxxix Beneficiation of Graphite and Phosphate

    xxxx) Khadi and Village Industries

    xxxxi) Coir and Coir Products

    xxxxii) Steel Re-rolling and /or Pencil Ingot making Industries

    xxxxiii) Zinc Sulphatexxxxiv) Welding Electrodes

    xxxxv) Sewing Machine Industry

    xxxxvi) Industrial Gases

    xxxxvii) Printing Industry

    xxxxviii) Machine Tools

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    Credit Guarantee Fund Scheme for Small Industries

    The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGMSE) was launched by the Government of India

    to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises

    are eligible to be covered under the scheme. The Ministry of Micro, Small and Medium Enterprises and Small Industries

    Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small

    Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises. The scheme

    was formally launched on August 30, 2000 and is operational with effect from 1st January 2000. The corpus of CGTMSE is

    being contributed by the Government and SIDBI in the ratio of 4:1 respectively and has contributed Rs.1346.54 crore to the

    corpus of the Trust up to September 30, 2007. Based on the future requirement, the corpus is likely to be raised to Rs.2500

    crore.

    Eligible Lending Institutions

    The institutions, which are eligible under the scheme, are scheduled commercial banks (Public Sector Banks/Private Sector

    Banks/Foreign Banks) and select Regional Rural Banks (which have been classified under Sustainable Viable category by

    NABARD). National Small Industries Corporation Ltd. (NSIC), North Eastern Development Finance Corporation Ltd.

    (NEDFi) and SIDBI have also been made eligible institutions. As on September 30, 2007, there are 62 Member Lending

    Institutions (MLIs) of the Trust, comprising 28 Public Sector Banks, 13 Private Sector Banks, 18 Regional Rural Banks and

    3 other Institutions viz., NSIC, NEDFI and SIDBI.

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    Credit Guarantee Fund Scheme for Small

    Industries..

    http://localhost/var/www/apps/conversion/tmp/scratch_3/cgtmse.ppt
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    ISO Reimbursement Scheme

    The Small Scale Sector has emerged as dynamic and vibrant sector of Indian Economy and it has

    been making significant contribution to industrial production, export and employment generation. The

    process of economic liberalization and market reforms has opened up the Indian small scale sector to

    the global competition. 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 vide this Office Administrative

    Order No.41(8)/ISO/Electx./2002 dt. 28th October, 2002. More than 2375 SSI & ancillary units have

    already been benefited from the earlier scheme of ISO 9000 till 31st March, 2002.

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    ISO 9000 Reimbursement scheme

    The Salient features of the Scheme

    1. The Scheme envisages reimbursement of charges of acquiring ISO-9000/ISO-14001/HACCP certifications to theextent of 75% of the expenditure subject to a maximum of Rs. 75,000/- in each case.

    2. The Permanent Registered Small Scale/ancillary/Tiny/Small Scale Service Business Enterprises (SSSBE) units areeligible to avail the Incentive Scheme.

    3. The Scheme is applicable to those SSI/ancillary/Tiny/SSSBE units who have already acquired ISO-9000/ISO-14001/HACCP certification.

    4. It is an all India Scheme administered by Development Commissioner (SSI), Ministry of SSI, Govt. of India. Witheffect from 30.8.2006 procedure of the Screening Committee to decide the reimbursement has been discontinuedand the Screening Committee has been dismantled to reduce delay in the sanctioning of reimbursement to the

    applicants. The Industrial Adviser co-coordinating this Scheme, has been delegated with powers to sanction thereimbursement as per the present provisions for reimbursement.

    5. The Scheme shall provide one time reimbursement only against a Entrepreneurship Memorandum Number. Theamount of incentive/subsidy/grant already availed for acquiring ISO 9000 or ISO 14001/HACCP Certification underany Central Govt. (including DC(MSME) Incentive Scheme)/State Govt. /Financial Institution shall be adjustedagainst the entitlement of reimbursement. It means the total entitlement of reimbursement of acquiring one ormore than on certifications shall be up to the maximum limit of Rs. 75,000/- only. In case a unit has receivedreimbursement/subsidy/grant from Central Govt./State Govt./Financial Institution against any one of thecertifications for an amount less than maximum limit of Rs. 75,000/-, the unit shall be eligible to receive thebalance amount only.

    6. (a) Only one time reimbursement is allowed against a E.M.Number for acquiring ISO-9000/ISO-14001/HACCPcertification; irrespective of the fact whether the concerned SSI has one or more than one Unit(s) within the samepremises/location or outside .

    (b) In case an ISO-9000/ISO-14001/HACCP certificate is obtained jointly by SSI units (even having a separatePermanent E.M.Number) under the corporate/group of Industries category, the total reimbursement shall belimited to 75% of the total expenditure incurred by the concerned units or Rs. 75,000/- whichever is less; and eachSSI unit shall get the amount on pro-rata basis.

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    Other MSME Schemes

    Participation in the International Exhibitions / Fairs - For registered Small & Micro manufacturing enterprises

    with DI/DIC

    Financial Assistance for using Global Standards (GS1) in Barcoding - Recognized the importance of barcoding

    and avail financial assistance through Office of DC(MSME).

    Purchase and Price Preference Policy - This is administered through the Single Point Registration Scheme of

    NSIC. Under this, 358 items are reserved for exclusive purchase from MSME by Central Government. Other

    facilities include tender documents free of cost, exemption from earnest money and security deposit and 15% price

    preference in Central Government purchases - for individual MSMEs

    Integrated Infrastructure Development (IID Scheme) - Assistance upto 40% or Rs.2.00 crores, whichever is less

    for setting up industrial estates for MSME units. For NE, assistance is 80% or Rs.4.00 crores - for State

    Governments/industry associations/ NGOs.

    Mini Tool Rooms - Assistance upto 90% or Rs.9.00 crores, whichever is less for setting up new Mini Tool Rooms.

    For upgradation of existing Tool Rooms, assistance is 75% or Rs.7.5 crores - for State Governments.

    MSME MDA - The scheme offers funding upto 90% in respect of to and fro air fare for participation by MSME

    Entrepreneurs in overseas fairs/trade delegations. The scheme also provide for funding for producing publicity

    material (upto 25% of costs) Sector specific studies (upto Rs. 2 lakhs) and for contesting anti-dumping cases (50%

    upto Rs. 1 lakh) - for individual MSMEs & Associations.

    Assistance to Entrepreneurship Development Institutes - For strengthening training infrastructure in EDIs,

    assistance upto 50% or Rs. 50 lakhs whichever is less - for State Governments.

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    Thank you For Further Information Please Contact:

    Director

    MSME- Development institute

    Ministry of MSME,Kurla Andheri Road, Sakinaka

    Mumbai-400 072

    Phone: 022-25874305/6090, Fax: 2857 8092

    E.Mail: [email protected]: www.msmedimumbai.gov.in