MICRO, SMALL & MEDIUM

ENTERPRISES
DEVELOPMENT INSTITUTE
(BRANCH)

AUTONAGAR
VISAKHAPATNAM
( 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
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 Service sector

( Investment limits in Plant & ( Investment limit in
Machinery) Equipment)
Micro Upto Rs 25 Micro Upto Rs 10
lakhs lakhs
Small Upto Rs 5 Small Upto Rs 2
crores crore
Medium Upto Rs 10 Medium Upto Rs 5
crore 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 & chutneys 13. Steel almirah
2. Bread 14. Rolling shutters
3. Mustard oil ( excpt solvent 15. Steel chairs – all types
extracted) 16. Steel tables- all other types
4. Ground nut oil ( excpt solvent 17. Steel furniture – all other types
extracted)
18. Padlocks
5. Wooden furniture and fixtures
19. Stainless steel utensils
6. Exercise books and registers
20. Domestic utensils – Aluminium
7. Wax candles
8. Laundry soap
9. Safety matches
10. Fire works
11. Agarbathies
12. Glass bangles
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 services
Please log on to
www.dcmsme.gov.in