MICRO, SMALL & MEDIUM ENTERPRISESDEVELOPMENT INSTITUTE(BRANCH)

AUTONAGARVISAKHAPATNAM( MINISTRY OF MSME, GOVT. OF INDIA)

A presentation by K R K Prasad, Director, MSME-DI, (Br) ,Visakhapatnam

OBJECTIVE of the Organization

"Imparting greater vitality and growth impetus  to the Micro, Small and Medium Enterprises (MSME) in terms of output, employment and exports and instilling a competitive culture based on heightened technology awareness."

MSME-DI ( Vizag) hierarchical structure

Min of MSME

DC(MSME)

MSME-DI Hyderabad

Br. MSME-DI, Vizag

Separate Ministry

dedicated to promotion of MSME

sector

Apex body for formulating policy for MSME development

Present jurisdiction extends to 5 coastal districts of Skk, Vzn,

Vizag, EG & WG

The MSMED Act, 2006 – a paradigm shift

• Service sector recognized. ‘Industry’ replaced by ‘Enterprise’

• Micro enterprise recognized as a separate category

• Medium enterprise defined for the first time• Legal provision for delayed payments

strengthened• Statutory basis to purchase policy and

National Board for MSMEs• Registration of MSMEs made optional

Definition of M S M E

Manufacturing sector( Investment limits in Plant & Machinery)

Service sector ( Investment limit in

Equipment)

Micro Upto Rs 25 lakhs

Micro Upto Rs 10 lakhs

Small Upto Rs 5 crores

Small Upto Rs 2 crore

Medium Upto Rs 10 crore

Medium Upto Rs 5 crore

ACTIVITIES OF MSME-DI (BR)

Assistance for start-ups: Free consultancy in

Selection of product, location, process, machinery etc.

Assistance in Project Report preparation

Guidance in getting registrations (preliminary and permanent) and other documentation required

Liaisoning with other development agencies for providing support to start-ups.

Assistance to start-ups

Training : Prospective entrepreneurs or

their personnel are provided training in the areas of 1. Industrial Motivation Camps 2. Entrepreneurship

Development 3 . Entrepreneurship and Skill

Development 4. Management Development

Industrial motivation campaigns (IMC)

Organized with a view to motivate youngsters towards self-employment by starting small enterprises.

Educated young people are introduced to the exciting world of entrepreneurship, its advantages and challenges.

They are encouraged to give shape to their ideas Are explained about the Govt and Non Govt machinery existing to assist them.

Organized mostly in Engg colleges, degree colleges and MBA colleges, as also in villages and small towns

Entrepreneurship Skill development programmes

A start-up entrepreneur lacks real-time knowledge of running an enterprise. Entrepreneurship Development Programmes ( EDPs / ESDPs ) of MSME-DI exposes him to various aspects like :

information on product/process design, manufacturing practices involved, testing and quality control, selection and usage of appropriate machinery and equipments, project profile preparation, marketing avenues/techniques, product/service pricing, export opportunities, infrastructure facilities available, financial and financial institutions, cash flow, etc

Socially and Economically backward groups are given priority. Stipendiary programmes are organized for them.

Management Development Programmes

Aim to sharpen the Managerial and decision-taking skills of existing/prospective entrepreneurs.

Help in increasing productivity and efficiency of existing units through better Management practices.

Scope covers areas like Industrial Management, Human Resource Development, Marketing Management, Export Documentation, Materials Management, IPR, Communication skills, etc.

Finance related Assistance to start-ups: CGMSE

Credit Guarantee Scheme for MSEs ( CGS) provides credit ( term loan and working capital) to start-up MSEs / existing MSEs without the hassles of collateral/third party guarantee.

MSEs within credit cap of Rs100 lakhs are eligible.

Guarantee cover is to the extent of 75% ( 80% for women entrepreneurs) of sanctioned credit, with max guarantee cap of Rs 62.5 lakh ( Rs. 65 lakh for women entrp)

CGMSE

Guarantee cover is 85% for Micro units for credit upto Rs 5 lakhs

All Scheduled Commercial Banks, some Regional Rural Banks, SIDBI and NSIC are eligible Member Lending Institutions (MLIs)

Manufacturing or Service MSEs are eligible .(except retail trade)

Guarantee fee of 1 .5% of sanctioned loan between 5 to 100 lakhs payable upfront ( 1% for loans less than 5 lakhs)

Annual service fee of 0.75% of amount guaranteed ( 0.5% for loans less than 5 lakhs)

Interest rate shall not exceed 3% over and above the Prime lending rate of the bank.

Schemes for existing entrepreneurs

Schemes for MSMEs are classified under:

MSME-DO Schemes National Manufacturing

Competitiveness Programme

Schemes of Min. of MSME : For Marketing

Marketing Development Assistance: MSME-DI facilitates MSEs to participate in selected International Trade Fairs by reimbursing 50% of cost towards space rent and75% of airfare. (limited to Rs 1.25 lakhs per MSE) ( 100% for Women, SC/ST/NER)

International Co-operation Scheme: Assistance for participation of MSME delegation in Int Trade

Fairs, Market survey, Business Development. Assistance for organizing International conferences in India or

abroad Vendor Development programmes: organized with an aim to

promote vendor registration and increase participation of MSMEs in supplying to PSUs/ Govt Depts etc in accordance to Public Procurement Policy.

20 Products reserved for exclusive manufacture by Micro & Small enterprises.

Reserved products

1. Pickles & chutneys2. Bread3. Mustard oil ( excpt solvent

extracted)4. Ground nut oil ( excpt

solvent extracted)5. Wooden furniture and

fixtures6. Exercise books and

registers7. Wax candles8. Laundry soap9. Safety matches10. Fire works

11. Agarbathies12. Glass bangles13. Steel almirah14. Rolling shutters15. Steel chairs – all types16. Steel tables- all other types17. Steel furniture – all other

types18. Padlocks19. Stainless steel utensils20. Domestic utensils –

Aluminium

For Technology Upgradation CLCSS: Credit Linked Capital Subsidy

Scheme provides 15% subsidy to MSEs adopting specific identified modern technology . List of identified technologies available at www.dcmsme.gov.in

ISO 9000/14000 Scheme : Reimbursement of expenses incurred in acquiring ISO 9000, 14000, HACCP standards s.t max of Rs. 75000/-

Vendor Development – Public Procurement Policy

Every Central Ministry/Department / PSU to set goals for procuring products/services from MSEs.

From April 2015, 20% purchases from MSEs by all Central Ministries, Depts and PSUs becomes mandatory.

4% of the total purchase should be from SC/ST MSE entrepreneurs. ( i.e, 20% of above mentioned 20%)

Price preference: In tender, if an MSE quotes price within L1 + 15%, and L1 when L1 is quoted by a non-MSE., then MSE should be allowed to supply a portion of the requirement by bringing down price to

Tender sets to be provided free of cost. MSEs to be exempted from paying EMD.

358 items reserved for exclusive purchase from MSEs.

For Women entrepreneurs – TREAD

Aims at providing financial assistance to women who have no access to credit.

Funding done through NGOs 30% GoI grant for income

generating activities for group of women through NGO

Grant of upto Rs 1 lakhs for Training organizations to conduct training programmes for empowerment of women.

MSE-Cluster Development Programme

Aims at sustainable growth of MSEs by addressing common issues , and capacity building of MSEs for common supportive action.

To create /upgrade infrastructural facilities in new or existing clusters, and to set up common facility centres in the clusters

Provides for soft interventions like training, exposure, tech upgradation, brand equity, business development etc. GoI grant of 75% subject to a max project cost of Rs 25 lakhs per cluster

Hard interventions like setting up CFC. GoI grant of 70% of project cost of 15 Cr. ( for SC/ST/Women cluster 90% grant)

Export promotion

Training in Export Packaging Management Development

Programmes in Export procedures and Documentation

Seminars on WTO

National Manufacturing Competitiveness Programme ( NMCP) Schemes Promoting use of Bar code Establishment of Incubators Promoting Lean Manufacture Promoting QMS/QTT Design Clinics Technology & Quality

Upgradation ( TEQUP) Marketing & Tech. Upgradation Promoting ICT among MSMEs

Promoting use of Bar code Scheme aims at

motivating MSEs to use Bar Code. Helps MSEs in better inventory control, easy market access, business development

Scheme provides reimbursement of 75% of One time fee and three years’ annual fee

Establishment of Business Incubators

Scheme provides financial assistance to established Institutions to set up Business Incubators for incubating new business ideas.

Rs 100 crore earmarked for developing 100 incubators. Each incubator to develop 10 new ideas

Promoting Lean Manufacture Aims to create awareness

among MSMEs about optimum utilization of resources, time, space etc leading to increased competitiveness

To be implement through a cluster based approach

MSMEs assisted in creation of SPV, implementation of Lean techniques

Improving productivity through use of Quality Management Standards & Quality Technology Tools

Aims at creating awareness among MSMEs on use of quality management standards for becoming globally competitive.

MSMEs can improve product quality, reduction in rejections, time saving etc using these tools.

MSME-DIs assist in creating awareness about, and in implementation of QMS/QTT

Intellectual Property Rights Scheme aims to create awareness on

the need for protecting intellectual properties by MSMEs.

Scheme provides financial assistance for ( by way of reimbursement) : Domestic patent registration Rs0.25

lakhs International patent registration – Rs

2.00 lakhs GI registration – Rs 1.00 lakh Other assistance for conducting

Awareness programmes (upto Rs 1 lakh), starting IPR Facilitation Centre ( Rs 65 lakhs) etc.

Design Clinic

Scheme aims at bringing Indian MSMEs and design experts on a common platform to enable MSMEs access expert advice and cost effective solutions in solving designing problems.

Helps MSMEs move up value chain from mere manufacturers to design and manufacture.

Fin. Asst. As a grant of 60% of total project cost upto Rs 9 lakhs for individual ( or not more than 3 MSMEs)

For a group of 4 or more MSMEs, grant is 60% of approved project cost, or Rs 15 lakhs, whichever is less.

NID Ahmadabad , IISC Bangalore and CSIR are nodal agencies for the scheme.

TEQUP –( Technology & Quality Upgradation )

Scheme aims at sensitizing Indian MSMEs to adopt Energy Efficient technologies

Also aims at encouraging MSMEs to go in for product quality improvement through international and national certification.

Awareness camps for sensitizing MSMEs with expert organizations like BEE/TERI, UNIDO etc

TEQUP contd

GoI grant of 25% ( of approved cost as per DPR) for implementing Energy Efficient Technologies.

Reimbursement of 75% of application fee, license fee, product testing charges, inspection fee of Certification body to MSMEs for National certification ( upto Rs 1.5 lakhs) and International Certification ( Upto Rs 2 lakhs)

MATU - (Marketing and Technology

Upgradation )

Assistance for participating in local exhibitions/trade fairs ( train fare, space rent ) upto max of Rs 30,000/ - reimbursed.

Assistance for adopting Good Governance Practices like Limited Liability Partnership ( LLP) etc.

Reimbursement for acquiring ISO 18000,ISO22000 and ISO27000 Certification

For more details on our Schemes and

servicesPlease log on to

www.dcmsme.gov.in

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