1 A PRESENTATION ON SCHEMES / PROGRAMMES OF MINISTRY OF MSME in Uttar Pradesh

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APRESENTATION

ON

SCHEMES / PROGRAMMESOF

MINISTRY OF MSMEin

Uttar Pradesh

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Growth of MSEs in Uttar Pradesh

Year / Stat. 2004-05 2005-06 2006-07 Growth rate (%)

No. Of units 1938524 2027020 2116791 28.98

Employment 1219059 1267525 1319395 26.67

Investment (Rs. Cr.)

21858 23407 24852 47.34

Production (Rs. Cr.)

40513 46927 55153 117.26

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IMPORTANT SCHEMES • Credit Guarantee Scheme

• Credit Linked Capital Subsidy Scheme

• ISO-9000/14001 /HACCP Assistance

• Integrated Infrastructural Development

• Micro and Small Enterprises Cluster

Development Programme

• Technology Development Centres

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Credit Guarantee Fund Scheme for Micro and Small Enterprises

• Launched on 30 August 2000 and became operational with effect from 1 January, 2001

• Operated by the CGTMSE

• Provides guarantees to MLIs for loans sanctioned without collateral and/or third party guarantee up to Rs. 50 lakh

• Guarantee cover upto 80%

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Proposals approved for U. P . under CGS

2005-06 2006-07 2007-08

ProposalsApproved

1055 1109 1539

LoanAmount

(In lakh)

2672.30 3636.91 5166.15

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Credit Linked Capital Subsidy Scheme

(CLCSS)• Technology upgradation of MSEs

• Nodal Agencies & PLIs--- SIDBI, NABARD, SBI, Canara Bank, BOB, PNB, BOI, Andhra Bank, SBBJ, , etc.

• Provide 15% capital subsidy for improved technology --- loan up to Rs.100 lakh

• Coverage :- 48 products/sub-sectors

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Units Assisted (as on 31 March 2008)

Units assisted Amount reimbursed

(Rs. Cr.)

6600 229

180 4.11

All India

UP

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ISO-9000/14001 /HACCP Scheme

• Reimbursement to the extent of 75% of the expenditure (max. Rs.75000)

• All MSEs that have filed EM eligible

• All India :

Units Assisted : 17067

Amount Disbursed : Rs. 84.99 Cr.

. No. Of beneficiaries in U P 1318

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Integrated Infrastructural Development (IID) Scheme

• Provide developed sites with basic infrastructural facilities like power, water, drainage, roads, common facilities, etc

• Project cost --Rs. 5 crore

•Central Government provides 40 percent grant up to a maximum of Rs. 2 Cr.

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Integrated Infrastructural Development (IID) Scheme

(Contd.)

• 106 projects sanctioned

• Scheme also provides for upgradation of infrastructure in old industrial estates

• Subsumed in MSE-CDP

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IID Centres in Uttar Pradesh

S No.

IID Centre ImplementingAgency

ProjectCost (in Cr.)

GOIGrant(in Cr.)

Status

1 Bhadohi BIDA 5.94 2.00 Completed

2 Banther (Unnao)

UPSIDC 5.50 1.83 Completed

3. Kosi-Kalan(Mathura)


4. Etah UPSIDC 5.15 1.79 Completed

5 Kursi Rd.(Barabanki)


6 Baghpat UPSIDC 5.48 1.30 Completed

7 Masoori(Ghaziabad)


8 Ram Nagar(Chandouli)

UPSIDC 5.67 1.17 Under progress

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Micro and Small enterprises Cluster Development Programme (MSE-CDP)

• Includes diagnostic study, trust building, development of skills, marketing & export, technology upgradation of enterprises, formation of consortia, setting up CFCs, etc.

• 386 clusters taken up for development

• Guidelines revised in March 2006 to

i) Raise the project cost to Rs 10 Cr. and GOI assistance up to 80% ii) Introduce PPP mode iii) Enable State Governments/Agencies/SPVs to implement

projects iv) Enable assistance for infrastructure upgradation • Special measures for women-owned enterprises

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Clusters Assisted Uttar Pradesh in the Last 2 YearsImplementing Agency

Clusters taken for soft interventions

Amount Sanctioned (2007-08)

Clusters taken for diagnostic studies

Amount sanctioned (2007-08)

Government of U.P

09 19.35 (Amount sanctioned in 2006-07)

47 (2007-08) Under Process

MSME-DI Kanpur 06 9.40 05 2.50MSME-DI Allahabad

02 6.28 0 -

MSME-DI Agra - - 03 1.50MSME TDC Firizabad

- - 01 2.25

NIESBUD - 07 15.75NIMSME 22 37.12CIPET Lucknow 03 5.06

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MSME Technology Developmentt Centres in U P

-Assistance to MSEs in product and process development -Testing, calibration and common facility services -Skill development training programmes -Consultancy services

Name of Research Institute

Number of persons trained in 2007-08

Number of units benefited

PPDC, Agra 913 1274CDGI, Ferozabad 146 542FFDC, Kannauj 2225 1015

PPDC, Meerut 665 506CFTI Agra 3079 462

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• Formulation of NMCP announced in 2005-06 Budget, to support MSMEs

• Its Role is to :

Ensure MSME Sector Grows at a Healthy Rate

Draft ‘National Strategy for Manufacturing’

• Ten Schemes drawn up under NMCP at Rs. 956 crore

• Implementation of Schemes to be in PPP Mode

• Programme deals with Firm-Level Competitiveness, addressing issues of Competitiveness against Global Challenges

NATIONAL MANUFACTURING NATIONAL MANUFACTURING COMPETITIVENESS PROGRAMME (NMCP)COMPETITIVENESS PROGRAMME (NMCP)

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• Marketing Support/Assistance to MSMEs BAR CODE

• Support for Entrepreneurial and Managerial Development

of MSMEsINCUBATORS

• Enabling manufacturing sector to be competitive through

quality management standard and quality technology tools QMS/QTT

• National Campaign for Investment in Intellectual Property IPR

• 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 and Quality Upgradation support for MSMEs TECH UP

• Design Clinic Scheme to bring design expertise to the

Manufacturing sector DESIGN

• Marketing Assistance/SMEs and technology upgradation

activities - Ministry of SSI in co-operation with TIFAC/CSIR C WATCH

NATIONAL MANUFACTURING NATIONAL MANUFACTURING COMPETITIVENESS PROGRAMME - COMPONENTSCOMPETITIVENESS PROGRAMME - COMPONENTS

Full Name of the Scheme Short Name

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NMCP – New Activities(Over next 4 years)

No Name of the Component

4 years 2008-09

GOI Share (RE)Total Project Cost GOI Share

1 BAR CODE 1.50 1.50 0.20

2 INCUBATORS 79.45 66.50 8.00

3 QMS / QTT 50.00 40.00 7.00

4 IPR 55.00 50.00 8.00

5 LEAN 280.80 246.00 20.00

6 MTR 210.00 135.00 20.00

7 ICT Opt. I *

Opt. II

207.00 104.00 6.00

100.00 60.00 6.00

8 TECH UP 93.50 78.60 10.00

9 DESIGN 50.00 41.00 5.00

10 C WATCH 53.00 26.50 4.00

TOTAL 973.25 745.10 88.20* Option I is kept on hold with TPC Rs. 1080.25 cr, GOI Share Rs. 789.10 cr and RE Rs. 88.20 cr.

Rs. Crore

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STATUS OF NMCP SCHEMESS. No.

Name of Scheme

(Cost of Scheme)

EFC

Clearance

RE

2007- 08

BE

2008 - 09

i Bar Coding (1. 5) Operational from 01/6/07

0.1 0.20

ii Incubators (79.45) 0.1 8.00

iii QMS / QTT (50) 0.1 7.00

iv IPR (55) 0.1 8.00

v Lean (280.80) 0.1 20.00

vi MTR (210) 0.1 20.00

vii ICT (100) 0.1 6.00

viii TECH UP (93.50) 0.1 10.00

ix Design (50) 0.1 5.00

x C Watch (53) 0.1 4.00

Total 01.0 88.20

Rs. in Crore

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• Existing MDA Scheme modified to popularize Bar

Coding

• Bar Coding an effective Tool to improve

marketability

• Reimbursement allowed :

One Time Registration Fee

75% of Annual Fee for 1st 3 years (Bar Code

Certificate)

• 1400 SMEs to be Benefitted during 11th FY Plan

BAR CODEBAR CODE

TECHNOLOGY STRATEGY: UpcomingTECHNOLOGY STRATEGY: Upcoming

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• Object :

Assist Incubation of Innovative Ideas

Encourage Ideas to Become SMEs

• Total Project cost – Rs. 79.45 cr

GOI Share – Rs. 66.50 cr

2008-09 BE – Rs. 8.00 cr

INCUBATORS INCUBATORS

1 / 2TECHNOLOGY STRATEGY: UpcomingTECHNOLOGY STRATEGY: Upcoming

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• 100 BIs to be Located in R&D Institutes @ 25 p.a

• Govt. Grant (Max. 85%) = Rs. 4 to 8 lakhs per Idea

• Each BI to Assist 10 Ideas / Units

• R&D Institutions and BIs to Suggest & Nurture

• Can also be Dovetailed with other Schemes

• Tie Up ‘Successes’ with VC / Angel Funds

• Publicity & Proposals Essential for Success

INCUBATORS INCUBATORS


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Mini Tool Rooms•Establishment of MTRs inPPP mode

•Model 1: pvt enterprise led-viability gap funding –40%

•Model 2: pvt enterprise +State Govt-viability gap funding-40%

•Model 3: state govt. entity(land+bldg~6 cr) +Centre—9 cr

•T.A.s----RFPs to issue

•GoI allocation-Rs 135---establish min. 15 MTRs

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• MSME’s ISO Reimbursement Scheme Successful

• QMS: ISO-22000 (Food), ISO-18000 (Health) etc.

• QTT: Introduce proven Tools like 6-Sigma, 5-S,

Kaizen, TPM, TQM etc.

• Total Project cost – Rs. 50.00 cr (GoI = 80%)

2008-09 BE – Rs. 7.00 cr

• EFC has Cleared. Guidelines being Finalized

QUALITY MGT. SYSTEMS / TOOLSQUALITY MGT. SYSTEMS / TOOLS( QMS / QTT )( QMS / QTT )


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Schemes of NSIC

• Marketing Support

• NSIC’s Single Point Registration

Scheme (SPRS)

• Technology Support

• Training Programmes

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MARKETING SUPPORT

1. Single Point Registration Scheme (SPRS) under Govt. Stores Purchase Programme

2. Consortia & Tender Marketing

3. Raw material Distribution

4. Exhibitions & Buyer Seller Meets

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Consortia and Tender Marketing

1. NSIC submits bids on behalf of MSEs against the tenders of Government Deptts/PSUs.

2. Orders are farmed out to MSEs for execution.

3. Raw material assistance is granted to such units.

4. Bills are realized by NSIC for payment to supplier MSEs.

5. Part payment upto 70% is made to supplier MSEs before realization of bills

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Raw Material Distribution

1. NSIC distributes basic raw materials like Aluminum, Copper and Iron & Steel to MSEs in relatively smaller quantities and at competitive rates

2. Tie ups with bulk Raw material manufactures e.g NALCO, BALCO, IOC, SAIL, RINL, Hindustan Zinc Ltd., Hindustan Copper Ltd etc.

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Exhibitions & Buyer Seller Meets

1. To help MSEs to exhibit their products in national and International exhibitions

About 60 exhibitions organised/participated in a year.

Assiatance granted as per Government rules

i) Upto 60% concession on stall rental.

ii) Upto 75% reimbursement in fare

upto Rs.40,000/-.

iii) Freight reimbursement upto Rs.15,000/-

(Total Assistance not to exceed Rs.1.25 lac)

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4. Buyer Seller Meets organized between Govt. Deptts./ PSUs and MSEs.

5. Vendor development of Micro and Small Enterprises for Govt. Deptts. / PSUs.

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TECHNOLOGY SUPPORT

NSIC offers small units the following technology support services through its Technical Services Centres and Extension Centres:

• Material equipment testing facilities through accredited laboratories

• Training on Product design through CAD• Common facility support in machining through CNC.• Energy and environment services at selected centres• Testing facility for electrical equipments• Classroom and practical training for skill upgradation

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TRAINING PROGRAMMES - Training Courses conducted by NSIC Technical Services Centres

Chennai Footwear Manufacturing, Electrical Gadgets Maintenance, Motor Rewinding etc.

Howrah Refrigeration & AC repair, Welding, Fitter, Automobile repairing, Material Testing etc.

Hyderabad Electronic assembly line, PC Hardware Maintenance, High end software development courses,

New Delhi CAD/CAM, CNC operations, Material testing, Draftsman, Machinist, Turner, S/W courses etc.

Rajkot Energy Audit, Diesel Engine Testing, CNC milling, Office Automation etc.

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Credit Support

1. Tie-ups with various banks for sanction of loans (United Bank of India, UCO Bank, Oriental Bank of

Commerce, Bank of Maharashtra, Central Bank of India, HSBC, AXIS Bank and YES Bank)

2. Help provided in preparation of credit proposals of MSEs for onward submission to banks for sanction of loan

3. Raw Material provided on easy credit terms against Bank Guarantee and advance against bills under tender marketing

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Coverage under KVI sector ---UP

•X Plan

•50 regd instns of KVIC/B

•15.06 lakh jobs (3.43 lakh in Khadi & 11.03 lakh in VI)

•Production :Rs 7572.87 cr

•9062 projects assisted & 2.62 lakh jobs created under REGP

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KVI sector in UP

• REGP: 1243 projects+ 31,000 jobs (07-Feb 08)

• ISEC –Subsidy –Rs 4.74 crore (06-07)

•Marketing Rebate –Rs 31.10 crore (06-07)

•PRODIP-57 projects (since 02)

•SFURTI-13 clusters (4 Khadi+ 9 VI)

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• PMRY (introduced in 1993) extended to cover rural areas in 1994-95. No more exclusivity of PMRY. There is overlap with REGP.

• Subsidy levels too low in PMRY – illustrated in separate slide/s.

• Higher unit cost of projects permissible under REGP (Rs.25 lakh as against Rs.5 lakh under PMRY, that too from 2007-08)

• Many States have schemes with more attractive benefits/assistance/interventions– Some examples

• Bangla Swanirbhar Karma Sansthan Prakalpa (West Bengal)

• Sri Vajpayee Bankable Yojana (Gujarat)

• Chief Minister’s Rozgar Yojana (Uttar Pradesh)

• Recovery rates of Bank loans are much lower in PMRY (32-38%) as compared to REGP (68 to 88%)

Merger of PMRY and REGP to form PMEGP

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• Scheme Design– ‘apriori’ allocation of targets of margin money subsidy

amongst marginalised sections of beneficiaries.

– Higher subsidy to lowest cost range of projects/units to marginalised sections.

– Earmarking higher proportion of projects for marginalised sections of beneficiaries.

– Projects costing above Rs.5 lakh can be set up in urban areas.

Salient Modifications


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Category of Beneficiary

Existing PMEGP

PMRY*

(max. amount)

REGP Project cost ranges

Upto Rs.2 lakh

Above Rs.2 lakh and upto Rs.5

lakh

Above Rs.5 lakh and upto Rs.25

lakh

General 12500 25% 25% 20% 10%

SC/ST 12500 30% 40% 30% 15%

OBC 12500 25% 30% 25% 10%


Salient Modifications (…contd.)Scheme Design (…contd.)

Subsidy as per cent of project cost to various categories of beneficiaries in manufacturing sector.

*Rs.15000/- per entrepreneurs for NER, HP, UA and J&K.

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• Implementation & Monitoring– Involvement of Gram Panchayats in publicity and

identification of beneficiaries at the grass root level.– Provision for availing the services of NGOs/Voluntary

Organisations for improved targetting and selection of beneficiaries.

– Updating of Project Profiles in consultation with senior officers of participating Banks.

– Enlarging the scope of Entrepreneurship Development Programme.

– Making the District Level Selection Committee collectively responsible for ensuring proper selection of beneficiaries.

Salient Modifications (…contd.)


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• Implementation & Monitoring– Putting in place a uniform verification and reporting process of units set

up.– Aggressive publicity of CGTMSME amongst Banks, beneficiaries and

State Government agencies.– Providing more attractive marketing linkages by tying up the units with

exhibitions/fairs at District/Zonal/State/National level.– Working out MIS and tracking system of monitoring the application of

beneficiaries, employment actually generated and performance of the units.

– Monthly/Quarterly/Half Yearly Reviews of performance at operational/Ministry level, with participation by Planning Commission in the monitoring at Ministry level.

– Targets to be allotted to States/DICs (like in PMRY) - 40%, and KVIC (as in REGP) – 60%.

Salient Modifications (…contd.)


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KVIC - XI Plan New Schemes

Objectives: • To provide Worksheds to Khadi artisans for better work environment• 38,000 khadi artisans proposed to be covered during the XI Plan.• A maximum assistance of Rs. 25,000 (per unit) is proposed

Total Plan Outlay - Rs. 127 crore

• Government Grant - Rs. 95 crore• Rs. 25 crore earmarked in BE 2008-09

Approval of Finance Ministry being obtained.Guidelines are under preparation

Workshed Scheme for Khadi Artisans

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KVIC - XI Plan New Schemes

Objectives:• To assist 200 weak khadi institutions and 30 marketing outlets

for renovation and creating other marketing infrastructure • To provide higher levels of wages to artisans and upliftment of

the Below Poverty Line (BPL) families in backward districts through Khadi activities

Total Plan Outlay - Rs. 27.50 crore Government Grant – Rs.26.025 crore

• Token provision of Rs. 1.00 crore earmarked in BE 2008-09.

SFC Note circulated.

Strengthening of infrastructure of existing weak Khadi Institutions and assistance for marketing infrastructure

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Objective:• To assist 200 khadi institutions (including 50 new institutions

managed by SC/ST) towards enhancing their productivity and competitiveness.

• To improve the productivity of the sector through replacement of charkhas / looms, to add value to khadi products by encouraging conversion from fabric to readymade garments and to make the khadi industry competitive with more market driven, profitable production and higher wages to artisans

Total Plan Outlay - Rs. 90 crore• Government Grant – Rs. 83.25 crore• Rs. 10 crore earmarked in BE 2008-09.

EFC has approved and recommended the scheme.

KVIC - XI Plan New SchemesScheme for Enhancing Productivity & Competitiveness

of Khadi Industries and Artisans

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THANK YOU

Documents

1 A PRESENTATION ON SCHEMES / PROGRAMMES OF MINISTRY OF MSME in Uttar Pradesh