Development Commissioner (DC-MSME) Schemes
Related scheme: 1. Credit Guarantee
Description Ministry of Micro, Small and Medium Enterprises, GoI and Small Industries
Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust
for Micro and Small Enterprises (CGTMSE) to implement Credit Guarantee Fund Scheme for
Micro and Small Enterprises. The corpus of CGTMSE is being contributed by GoI and SIDBI.
Nature of assistance Collateral free loans up to a limit ofRs.50 lakh - for individual MSEs
Who can apply Both existing and new enterprises are eligible to be covered under the scheme.
How to apply Candidates meeting the eligibility criteria may approach banks/financial
institutions, which are eligible under the scheme, or scheduled commercial banks and select
Regional Rural Banks.
Related scheme: 2. Credit Linked Capital Subsidy (CLCS) forTechnology Upgradation
Description Technology upgradation would ordinarily mean induction of state-of-the-art or near
state-of-the-art technology. In the varying mosaic of technology obtaining in more than 7,500
products in Indian small scale sector, technology upgradation would mean a significant step up
from the present technology level to a substantially higher one involving improved productivity,
and/or improvement in quality of products and/or improved environmental conditions including
work environment for the unit. It includes installation of improved packaging techniques as well
as anti-pollution measures and energy conservation machinery. Further, units in need of
introducing facilities for in-house testing and on-line quality control would qualify for assistance,
as the same are a case oftechnology up-gradation.
Replacement of existing equipment/technology with same equipment/ technology will not
qualify for subsidy under this scheme, nor would the scheme be applicable to units
upgrading with second-hand machinery.
Nature of assistance The revised scheme aims at facilitating technology upgradation by
providing 15% up-front capital subsidy to SSI units, including tiny, khadi, village and coir
industrial units, on institutional finance availed by them for induction of well established and
improved technologies in specified sub-sectors/products approved under the scheme.
Revised CLCS has been amended as follows:
(a) Ceiling on loans under the scheme has been raised from Rs.40 lakh to Rs.1 crore
(b) Rate of subsidy has been enhanced from 12% to 15%.
(c) Admissible capital subsidy is calculated with reference to purchase price of plant and
machinery, instead of term loan disbursed to the beneficiary unit.
(d)Practice of categorisation of SSI units in different slabs on the basis of their present
investment for determining eligible subsidy has been done away with; and
(e)Operation of the scheme has been extended up to 31st March, 2007. The above
revisions/amendments are effective from September 29, 2005.
Who can apply Eligible beneficiaries include sole proprietorships, partnerships, co-operative
societies, and private and public limited companies in the SSI sector. Priority shall be given
to woman entrepreneurs.
How to apply Candidates meeting the eligibility criteria may approach all scheduled commercial
bank, scheduled cooperative bank [including urban cooperative bank co-opted by SIDBI
under Technological Upgradation Fund (TUF)], Regional Rural Bank (RRB), State Financial
Corporation (SFC) and North-Eastern Development Financial Institution (NEDFi).
Related scheme: 3. ISO 9000/ISO 14001 Certification Reimbursement
Description SME has emerged as dynamic and vibrant and is making significant contribution to
industrial production, export and employment generation. The process of economic
liberalisation and market reforms has opened up Indian SMEs to global competition. In order
to enhance the competitive strength of SME, the Government has introduced an incentive
scheme for their technological upgradation/quality improvement and environment
management. The scheme provides incentives to those SMEs/ancillary undertakings who
have acquired ISO 9000/ISO 14001/HACCP certification. The scheme is enlarged so as to
include reimbursement of expenses for acquiring ISO 14001 certification.
Nature of assistance The scheme envisages reimbursement of charges for acquiring ISO-
9000/ISO14001/HACCP certification to the extent of 75% of expenditure subject to a
maximum ofRs.75,000 in each case.
Who can apply Permanent registered micro and small enterprises (MSEs) are eligible to avail the
incentive scheme. The scheme is applicable to those MSEs/ancillary/SSSB units who have
already acquired ISO-9000/ISO-14001/ HACCPcertification.
How to apply MSEs with their EM No. are required to submit their application, duly completed, to
their local Director, MSME-DI addresses given in the following website: www.dcmsme.gov.in
Related scheme: 4. Micro & Small Enterprises Cluster Development Programme (MSE-CDP)
Description The Ministry has adopted cluster development approach as a key strategy for
enhancing productivity and competitiveness as well as capacity building of MSEs and their
collectives in the country. Clustering of units also enables the providers of various services
to them, including banks and credit agencies, to provide their services more economically,
thus reducing the costs and improving the availability of services for these enterprises.
Objectives ofthe scheme:
i. To support sustainability and growth of MSEs by addressing common issues such as
improvement of technology, skills and quality, market access and access to capital.
ii. To build the capacity of MSEs for common supportive action through the formation of self-
help groups, consortia, upgradation of associations, etc
iii. To create/upgrade infrastructural facilities in the new/existing industrial areas/clusters
ofMSEs.
iv. To set up common facility centres (for testing, training, raw material depot, effluent
treatment, complementing production processes, etc.)
Nature of assistance • Diagnostic Study
• Soft Intervention
• Setting up of Common Facility Centres (CFCs)
• Infrastructure Development (Upgradation/New)
Cost ofproject and Govt. of India assistance:
• Diagnostic study - maximum cost Rs.2.50 lakh.
• Soft interventions - maximum cost of project Rs.25.00 lakh, with GoI contribution of 75%
(90% for special category States and for clusters with more than 50%
women/micro/village/SC/STunits).
• Hard interventions, i.e., setting up of CFCs – maximum eligible project cost of Rs.15.00
crore with GoI contribution of 70% (90% for special category States and for clusters with
more than 50% women/micro/village/SC/ST units).
Infrastructure development in the new/existing industrial estates/areas; maximum eligible project cost
Rs.10.00 crore, with GoI contribution of 60% (80% for special category States and for clusters with
more than 50% women/micro/SC/ST units).
Who can apply Industrial associations/Consortia, Clusters
How to apply Only online applications are considered with effect from 01-04-2012. Hard copy of
applications need to be sent through State Governments or their autonomous bodies or field institutes
ofthe Ministry of MSME i.e., MSME-DIs. The proposals are to be approved by the Steering Committee of
MSE-CDP.
Related scheme: 5. Micro Finance Programme
Description The Union Government has launched a scheme of micro finance and tied up with
the existing programme of SIDBI by way of contributing towards security deposits required from the
MFIs/NGOs to get loan from SIDBI. The scheme is being operated in the under-served States and
under-served pockets/districts of other States.
Nature of assistance Government of India provide funds for micro finance programme to SIDBI, which
is called ‘Portfolio Risk Fund’(PRF).At present SIDBI takes fixed deposit equal to 10% of loan amount.
The share ofMFIs/NGOs is 2.5% of loan amount (i.e., 25% of security deposit) and balance 7.5% (i.e.,
75% of security deposit) is adjusted from funds provided by the Government of India.
Who can apply MFIs/NGOs
How to apply Submit the proposal in the prescribed form to SIDBI.
Related scheme: 6. MSME Market DevelopmentAssitance (MDA)
Description As part of comprehensive policy package for MSMEs, MSME-MDA scheme has
been announced with a view to increasing the participation of representatives of
participating units. The provision of MSME-MDA scheme has been modified
recently. MDAis offered in three forms as mentioned below:
1. Participation in the international exhibitions/fairs - For registered small & micro
manufacturing enterprises with DI/DIC.
2. Financial assistance for using Global Standards (GS1) in barcoding.
3. Recognised importance of barcoding and avail financial assistance through Office of the
DC (MSME).
Purchase and Price Preference Policy - This is administered through Single Point Registration
Scheme of NSIC. Under this, 358 items are reserved for exclusive purchase from MSME by the
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.
Nature of assistance The scheme offers funding up to 75% in respect of to and fro air fare
for participation by MSME entrepreneurs in overseas fairs/trade delegations. The scheme
also has provision of funding for producing publicity material (up to 25% of costs), sector
specific studies (up to Rs.2 lakh) and for contesting anti-dumping cases (50% up to Rs.1
lakh) - for individual MSMEs & associations.
Who can apply Individual MSMEs & industry associations.
How to apply Candidates meeting the eligibility criteria may send their applications to Office of
the DC (MSME) through the concerned MSME DIs.
Related scheme 7. NationalAwards (Individual MSEs)
Description MSMEs have registered tremendous growth and progress in terms of quality of
production, exports, innovation, product development and import substitution,
very much beyond the expected objectives of the setting up of MSMEs. Entrepreneurial efforts have
made it possible to produce a number of items, which were hitherto imported. In quite a few cases new
variants so produced are having additional attributes over their original versions and are capable of
solving a multitude of user problems. All this has become possible owing to the ambitions and visionary
spirit of entrepreneurs of MSMEs.
The MoMSME with a view to recognising the efforts and contribution of MSMEs, gives NationalAwards
annually to selected entrepreneurs and enterprises under the scheme ofNationalAwards.
Deserving entrepreneurs managing MSMEs having permanent registration/have
filed Entrepreneurs’ Memorandum Part-II with notified authorities. The MSMEs should have been in
continuous production/servicing at least during the last three years.
How to apply Eligible enterprises may send nominations in the prescribed proforma (may
download from the Ministry of MSME website) to Director, MSME-DI of the state where their MSME is
registered/they have filed Entrepreneurs’ Memorandum (EM).
Related scheme 8. National Manufacturing Competitiveness Programme (NMCP)
Description The National Manufacturing Competitiveness Council (NMCC) has finalised a
five-year national manufacturing programme. Ten schemes have been drawn up including
schemes for promotion of ICT, mini tool room, design clinics and marketing support for SMEs.
Implementation will be in PPP mode, and financing will be tied up. Under this plan following
schemes are being implemented.
1 Marketing support/Assistance to MSMEs (Bar Code).
2 Support for entrepreneurial and managerial development of SMEs through incubators.
3 Enabling manufacturing sector to be competitive through Quality Management Standard &
Quality Tech. Tools (QMS/QTT).
4 Building awareness on Intellectual Property Rights (IPR) for MSME.
5 (a) Lean manufacturing competitiveness scheme for MSMEs. (b)
Compendium of success stories.
6 (a) Design clinic scheme for design expertise to MSMEs manufacturing sector (DESIGN).
(b) Case studies of design projects under design clinic scheme for MSMEs.
7 Marketing assistance & technology upgradation scheme in MSMEs.
8 Technology and quality upgradation support to MSMEs.
9 Promotion of ICT in Indian manufacturing sector (ICT)
Nature of assistance Varies for each scheme; visit the following website: http://www.dcmsme.gov.in/
schemes/nmcp_scm.htm
Who can apply MSMEs
How to apply Submit the proposal in the prescribed form to be obtained from the DC (MSME).
i). Marketing Support/Assistance to MSMEs (Bar Code)
Description Under this scheme MSEs are encouraged and motivated to use bar-codes through
seminars and reimbursement of registration fees.
Nature of assistance Reimbursement of registration fee (one time and recurring for 3 years) for bar
coding. Financial assistance for reimbursement of 75% of one-time registration fee (Under MSE-MDA)
w.e.f. 1st January, 2002 and 75% of annual recurring fee for first three years (Under NMCP) w.e.f. 1st
June, 2007 paid by MSEs to GS1 India for the use ofbar coding.
Who can apply The scheme is applicable to those MSEs with EM-II registration and registration
with GS1 India for use ofbarcode.
How to apply On getting registration for use ofbarcode for products, (http://www.gs1india.org/),
take the following steps for reimbursement of fee:
• Fill the prescribed application form for claiming reimbursement on bar code.
• The application form along with formats for supporting documents may be collected from
the Director, MSME-DI, or can be downloaded from http://www.dcmsme.gov.in/
• The filled-in application form with required documents is to be submitted to the office of
MSME-DI.
• The address of MSME-DI is given on the website: www.dcmsme.gov.in/ MSME-
DO/DCmsmeaddress.html
ii). Entrepreneurial and Managerial Development of SMEs through Incubators
Description The scheme endeavours to provide early stage funding for nurturing innovative
business ideas (new indigenous technology, processes, products, procedures, etc.) which could be
commercialised in a year. Under this scheme financial assistance is provided for setting up ofbusiness
incubators.
Nature of assistance Funding support for setting up of ‘Business Incubators (BI)’: The cost may vary
from Rs.4 to 8 lakh for each incubatee/idea, subject to overall ceiling of Rs.62.5 lakh for each BI. Items
@ per BI:
(a) Upgradation of infrastructure Rs. 2.50 lakh
(b) Orientation/training Rs. 1.28 lakh
(c)Administrative expenses : Rs. 0.22 lakh, Thus the total assistance per BI - Rs. 66.50 lakh
Who can apply Any individual or MSME having innovative ideas ready for commercialisation can
apply to the host institution (e.g., IITs, NITs, technical colleges, research institutes, etc.). See the list
ofhost institutions at
http://www.dcmsme.gov.in/schemes/Institutions_Detail.pdf
Any technical institution (as given in the EoI) which wants to become host institution can apply to the
office of the Development Commissioner – MSME (DC-MSME) or their nearest MSME-DI for funding
support.
How to apply • Application can be made by the technical institution which wants to be host
institution once a Request For Proposal (RFP)/Expression of Interest (EoI) is released.
Any individual or MSME can apply directly to their nearest host institution, a list of host institutions is
given on the website: http://www.dcmsme.gov.in/ schemes/Institutions_Detail.pdf
iii). Enabling Manufacturing Sector to be Competitive through Quality Management
Standards and Quality Technology Tools
Description The scheme endeavours to sensitise and encourage MSEs to understand and adopt
latest Quality Management Standards (QMS) and Quality Technology Tools (QTT).
Nature of assistance • Funding support for introduction of appropriate course modules in technical
institutions
• Funding support for conducting ‘QMS awareness’ workshops (applicant – expert
organisation or industry associations)
• Funding support for conducting competition watch (C-watch), study and analysis
• Funding support for introduction of QMS and QTT in selected MSMEs (applicant– expert
organisation or industry association)
• Participation in international study mission (MSEs as selected by Monitoring andAdvisory
Committee)
• A total contribution of Rs.425 lakh per year to be made by the GoI for introduction of
course material, training the trainer, awareness workshop and other activities
• Funding support of Rs.1.25 lakh per programme to be provided for conducting awareness
programme.
• Under C-watch
~ GoI contribution of Rs.2.5 lakh for professional study on threatened
products.
~ GoI contribution ofRs.7.5 lakh for technical exposure visit
~ GoI contribution ofRs.2.5 lakh for procurement of samples
~ GoI contribution of Rs.5 lakh for product development
~ GoI contribution ofRs.1.5 lakh for popularisation of improved products
• GoI contribution of Rs.2.5 lakh/unit for covering the costs of diagnostic study and for
implementation of Quality Technology Tools/Quality Management Standards (25 to 50% cost
will be paid by the participating units)
• GoI contribution of Rs.2.5 lakh per SME for international visit (25% and 50% cost to be
collected by the micro and small enterprise respectively)
Who can apply : Expert organisations like Quality Council of India (QCI), National Recruitment
Board for Personnel and Training, Consultancy Development Corporation, National Productivity Council,
Standardisation Testing & Quality Certification (STQC, a Society under the Ministry of IT), IIQM (Indian
Institute of Quality Management), Industry Associations that have taken active interest in QMS/QTT,
technical institutions, engineering colleges, tool rooms and similar bodies, and MSEs.
How to apply MSEs or clusters may contact Office of the DC (MSME). The DC office will
finalise the MSME clusters for conducting the Awareness Programme on Quality Management Standards
and Quality Technology Tools (QMS/QTT).
iv). BuildingAwareness on Intellectual Property Rights (IPR)
Description The purpose of the scheme is to enhance awareness among the MSMEs about
Intellectual Property Rights, to take measures for protecting their ideas and business strategies.
Effective utilisation of IPR tools by MSMEs would also assist them in technology upgradation and
enhancing their competitiveness.
Nature of assistance Funding support for
• Conducting awareness/sensitisation programmes on IPR (Applicants – MSME
organisations and expert agencies)
• Conducting pilot studies for selected clusters/groups of industries (Applicants – MSME
organisations, competent agencies and expert agencies)
• Funding support for conducting interactive seminars/workshops (Applicants – MSME
organisations and expert agencies)
• Funding support for conducting specialised training on IPR (Applicants – Expert agencies)
• Funding support in the form of Grant on Patent/GI Registration (Applicants – MSME units
and MSME organisations)
• Funding support for setting up IP Facilitation Centre (IPFC) for MSME (Applicants –MSME
organisations and IPR facilitating agencies)
• Funding support for organising interaction with international agencies (Applicants –MSME
organisations and IPR facilitating agencies)
• GoI assistance ofRs.1 lakh per awareness programme
• GoI assistance ofRs.2.5 lakh per pilot study
• GoI assistance ofRs.2 lakh per programme of interactive seminar
• GoI assistance of Rs.6 lakh per short term training programme and Rs.45 lakh per long
term training programme
• For registered Indian MSMEs, one time financial support limited up to Rs.25,000 on grant
of domestic patent and Rs.2 lakh for foreign patent; for registering under Geographical
Indications of Goods Act, one time financial support limited up to Rs.1 lakh
• A total financial support by GoI up to Rs.65 lakh each for establishing IPFCs which will
include one-time grant of Rs.45 lakh and Rs.18 lakh as recurring expenses for 3 years, and
Rs.2 lakh as miscellaneous charges.
• Financial support by GoI up to Rs.5 lakh and Rs.7.50 per event for domestic interventions
and international exchange programme respectively.
Who can apply • Registered MSME units
• MSME organisations like industry associations, societies, cooperatives, firms, trusts,
NGOs, institutions and universities with a track record of assisting MSMEs
Related scheme 1. Growth Capital and EquityAssistance
Description The scheme provides adequate capital to meet growth aspirations of MSMEs and
helps existing small and medium businesses to make investments in marketing, brand building,
creation of distribution network, technical know-how, R&D, software purchase, etc.
Nature of assistance Assistance in the form of mezzanine/convertible instruments, subordinated debt
and equity
Who can apply Existing small and medium businesses in need of capital for growth
i). An MSME as per definition of Government of India (MSMEDAct)
ii). SIDBI’s existing customers (meeting internal rating criteria) or
i). Units with past 3 years of profitability and 2 years of satisfactory banking credit track
record (meeting internal credit rating criteria)
ii). Acceptable external rating from CRISIL, ICRA, D&B, SMERA, etc., would be desirable.
How to apply Submit the on-line enquiry form in the website
Related scheme 2. Refinance for Small Road Transport Operators (SRTOS)
Description Expenditure on the cost of chassis, body building, initial taxes/insurance and
working capital; second-hand vehicles are not eligible for assistance. The scheme is operated through
SFCs/SIDCs/banks.
Nature of assistance Refinancing
Who can apply Small road transport operators
How to apply Apply to SFCs/SIDCs/banks.
Related scheme 3. General Refinance
Description Setting up new MSEs or expansion, modernisation, diversification, etc., of existing
units and for all activities eligible for assistance under the scheme including professional
practice/consultancy venture and service sector units such as tourism related
activities/hospitals/nursing homes/polyclinics/hotels/restaurants/ marketing and industrial
infrastructural projects.
The scheme is operated through SFCs/SIDCs/banks.
Nature of assistance For setting up new MSEs or expansion, modernisation, diversification, etc.
Who can apply All forms ofMSEs (proprietary, partnership), company, society, etc.
How to apply Apply to SFCs/SIDCs/banks
Related scheme 4. Refinance for Textile Industry under Technology Upgradation Fund
(RTUF)
Description Installation of specified types of machinery in a new unit or in an existing unit by
way of replacement of existing machinery and/or expansion.
Scheme operated through SFCs/SIDCs/banks Nature of assistance Refinancing
Who can apply Textile industries
How to apply Apply to SFCs/SIDCs/banks
Related scheme 5. Acquisition of ISO Series Certification by MSE Units
Description Expenses on consultancy, documentation, audit, certification fees, equipment and
calibrating instruments required would be taken into account for determining loan requirement.
Scheme operated through SFCs/SIDCs/banks
Nature of assistance Financial support for ISO certification
Who can apply Existing MSEs having good record of past performance and sound financial
position. The concerns should: have been in operation for a period of at least two years; earned profit
and/or declared dividend during preceding two financial years; and, not be in default to
institutions/banks in payment of their dues.
How to apply Apply to SFCs/SIDCs/banks
Related scheme 6. Composite Loan
Description Assistance for equipment and/or working capital as also for worksheds
Scheme operated through SFCs/SIDCs/banks
Nature of assistance Loan limit - Not to exceed Rs.25 lakh
Who can apply Mocro and small industries
How to apply Apply to SFCs/SIDCs/banks
Related scheme 7. Single Window
Description Providing both term loans for fixed assets and loan for working capital through a
single agency.
The total working capital requirement of such units inclusive of all fund based facilities is to be taken
into account for determining the working capital facility eligible for refinance.
Scheme operated through SFCs/SIDCs/banks
Nature of assistance Loans for fixed assets and working capital
Who can apply Entrepreneurs setting up new projects in MSE sector, new promoters acquiring
unencumbered fixed assets of existing MSE concerns from PLIs and also existing well-run units
undertaking modernisation/ technology upgradation and potentially viable sick units undertaking a
rehabilitation scheme.
How to apply Apply to SFCs/SIDCs/banks
Related scheme 8. Rehabilitation of Sick Industrial Units
Description Provides assistance for rehabilitation ofpotentially viable sick units
Scheme operated through SFCs/SIDCs/banks
Nature of assistance Assistance for rehabilitation ofpotentially viable sick MSEs.
Who can apply Potentially viable MSE units conforming to the definition of sick MSE unit.
The assistance is meant for sick MSE units for which proper rehabilitation packages have been drawn
up. Units eligible for rehabilitation assistance should be capable of being restored to normal health
within a reasonable time.
How to apply Apply to SFCs/SIDCs/banks
Related scheme 9. Development of Industrial Infrastructure for MSME Sector
Description Setting up of industrial estates/development of industrial areas including such
projects found eligible under the KVIC model.
Scheme operated through SFCs/SIDCs/banks
Nature of assistance Financial support for development of industrial infrastructure Who can apply
Promoters of industrial infrastructure
How to apply Apply to SFCs/SIDCs/banks
Related scheme 10. Integrated Infrastructural Development (IID)
Description IID centres with facilities like water supply, power, telecommunication, common
services centre including technological back up services for MSEs in rural backward areas.
The cost of improving/upgrading deficient infrastructural facilities to increase productivity and optimum
utilisation of existing centres/clusters in backward/rural areas.
Scheme operated through SFCs/SIDCs/banks
Nature of assistance Ceiling on project cost is Rs.500 lakh. Cost in excess of Rs.500 lakh may be met
by
the State/UT Government. Of Rs.500 lakh. Rs.200 lakh by grant from GoI and loan from SIDBI, from
any other bank/FI of Rs.300 lakh. In case of NE region, amount of Grant from GoI and loan from
SIDBI, from any other bank/FI would be Rs.400 lkh and Rs.100 lakh respectively.
Who can apply Implementing agencies (a public sector corporation or a corporate body or a good
NGO with a sound financial position) entrusted with the task of implementing the
scheme by the concerned State/Union Territory Government.
How to apply Apply to SFCs/SIDCs/banks
Related scheme 11. Bills Re-discounting Equipment
Description For sale/acquisition of machinery on deferred payment terms for setting up of new
MSME units is also for expansion, diversification, modernisation, replacement, addition ofbalancing
equipment, etc.
Nature of assistance Operated through scheduled commercial banks Usance ofbills - Normally 2-5 years
Who can apply Manufacturer-sellers/purchaser-users of indigenous machinery/capital equipment
one ofwhom should be in the small scale sector
How to apply In the prescribed proforma given in the SIDBI
Related scheme 12. Bills Re-discounting - Equipment (Inland Supply Bills)
Description To encourage bills culture as a method of working capital financing to ensure timely
payment, trade bills arising out of the supply of goods by MSME units and discounted with commercial
banks either by seller or buyer are re-discounted by the banks with SIDBI.
Scheme operated through scheduled commercial banks
Nature of assistance Unexpired usance - Not more than 90 days.
Who can apply MSME suppliers
How to apply Apply to scheduled commercial banks
NABARD Schemes
Related scheme 1. Producer Organisations Development Fund (PODF)
Description Extending credit facilities to take up production, aggregation, processing and/or
marketing activities
Nature of assistance Fund support to producers organisations across three levels: credit
support,
capacity building & market linkage
Who can apply Marketing federations/corporations/cooperatives
How to apply Apply to banks
Related scheme 2. Dairy Venture Capital Fund
Description Milch animal
Nature of assistance Interest-free loan - 50% ofthe outlay
Who can apply Individuals
How to apply Apply through banks
Related scheme 3. Establishing Poultry Estates and Mother Units for Rural Backyard
Poultry
Description Scheme for poultry development. The scheme has the following three components
(i) Assistance to state poultry farms
(ii) Rural backyard poultry and
(iii)Poultry estates
Nature of assistance Unit cost (unit size 1,500 chicks per batch): Rs.1.36 lakh
Who can apply Individuals
How to apply Apply to banks
Related scheme 4. Establishment/Modernisation of Rural Slaughter Houses
Description The scheme is subsidy based credit linked scheme for establishment/modernisation
ofrural slaughterhouses
Nature of assistance Capital subsidy - 50% ofthe total financial outlay
Who can apply Any company, partnership firm, NGO and individual entrepreneurs
How to apply Apply to banks
Related scheme 5. Commercial Production Units of Organic Inputs
Description The scheme has two components: Fruit and vegetable market waste compost and
bio-fertitisers - bio-pesticides production units
Nature of assistance Subsidy @ 25% of the capital cost ofthe project
Who can apply Individuals
How to apply Apply to banks
Related scheme 6. Poultry Venture Capital Fund
Description The scheme:
• encourages poultry farming activity especially in non-traditional states and provides
employment opportunities in backward areas;
• improves production of poultry products which have ready market all over country;
• improves productivity of unscientifically run units through technology up-gradation;
• provides quality meat to consumers in hygienic conditions, and improves hygienic sale
of poultry meat and products in urban areas and neighbourhood societies through poultry
dressing and marketing outlets;
• improves productivity and facilitates rearing of other poultry species like quails, ducks,
turkeys, which have good potential.
Nature of assistance • Entrepreneurs contribution (margin) - for loans upto Rs.1 lakh, banks may not
insist on margin as per RBI guidelines. For loans above Rs.1 lakh: 10% (minimum)
• Back ended capital subsidy - 25% of outlay (33.33 % for SC/ST farmers and NE states
including Sikkim)
• Effective bank loan (excluding eligible subsidy as above) - balance portion, minimum
40% of outlay
Who can apply • Farmers, individual entrepreneurs, NGOs, companies, cooperatives, groups of
unorganised and organised sector which include SHGs, Joint Liability Groups (JLGs), etc.
Related scheme: 1. Credit Guarantee
Description Ministry of Micro, Small and Medium Enterprises, GoI and Small Industries
Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust
for Micro and Small Enterprises (CGTMSE) to implement Credit Guarantee Fund Scheme for
Micro and Small Enterprises. The corpus of CGTMSE is being contributed by GoI and SIDBI.
Nature of assistance Collateral free loans up to a limit ofRs.50 lakh - for individual MSEs
Who can apply Both existing and new enterprises are eligible to be covered under the scheme.
How to apply Candidates meeting the eligibility criteria may approach banks/financial
institutions, which are eligible under the scheme, or scheduled commercial banks and select
Regional Rural Banks.
Related scheme: 2. Credit Linked Capital Subsidy (CLCS) forTechnology Upgradation
Description Technology upgradation would ordinarily mean induction of state-of-the-art or near
state-of-the-art technology. In the varying mosaic of technology obtaining in more than 7,500
products in Indian small scale sector, technology upgradation would mean a significant step up
from the present technology level to a substantially higher one involving improved productivity,
and/or improvement in quality of products and/or improved environmental conditions including
work environment for the unit. It includes installation of improved packaging techniques as well
as anti-pollution measures and energy conservation machinery. Further, units in need of
introducing facilities for in-house testing and on-line quality control would qualify for assistance,
as the same are a case oftechnology up-gradation.
Replacement of existing equipment/technology with same equipment/ technology will not
qualify for subsidy under this scheme, nor would the scheme be applicable to units
upgrading with second-hand machinery.
Nature of assistance The revised scheme aims at facilitating technology upgradation by
providing 15% up-front capital subsidy to SSI units, including tiny, khadi, village and coir
industrial units, on institutional finance availed by them for induction of well established and
improved technologies in specified sub-sectors/products approved under the scheme.
Revised CLCS has been amended as follows:
(a) Ceiling on loans under the scheme has been raised from Rs.40 lakh to Rs.1 crore
(b) Rate of subsidy has been enhanced from 12% to 15%.
(c) Admissible capital subsidy is calculated with reference to purchase price of plant and
machinery, instead of term loan disbursed to the beneficiary unit.
(d)Practice of categorisation of SSI units in different slabs on the basis of their present
investment for determining eligible subsidy has been done away with; and
(e)Operation of the scheme has been extended up to 31st March, 2007. The above
revisions/amendments are effective from September 29, 2005.
Who can apply Eligible beneficiaries include sole proprietorships, partnerships, co-operative
societies, and private and public limited companies in the SSI sector. Priority shall be given
to woman entrepreneurs.
How to apply Candidates meeting the eligibility criteria may approach all scheduled commercial
bank, scheduled cooperative bank [including urban cooperative bank co-opted by SIDBI
under Technological Upgradation Fund (TUF)], Regional Rural Bank (RRB), State Financial
Corporation (SFC) and North-Eastern Development Financial Institution (NEDFi).
Related scheme: 3. ISO 9000/ISO 14001 Certification Reimbursement
Description SME has emerged as dynamic and vibrant and is making significant contribution to
industrial production, export and employment generation. The process of economic
liberalisation and market reforms has opened up Indian SMEs to global competition. In order
to enhance the competitive strength of SME, the Government has introduced an incentive
scheme for their technological upgradation/quality improvement and environment
management. The scheme provides incentives to those SMEs/ancillary undertakings who
have acquired ISO 9000/ISO 14001/HACCP certification. The scheme is enlarged so as to
include reimbursement of expenses for acquiring ISO 14001 certification.
Nature of assistance The scheme envisages reimbursement of charges for acquiring ISO-
9000/ISO14001/HACCP certification to the extent of 75% of expenditure subject to a
maximum ofRs.75,000 in each case.
Who can apply Permanent registered micro and small enterprises (MSEs) are eligible to avail the
incentive scheme. The scheme is applicable to those MSEs/ancillary/SSSB units who have
already acquired ISO-9000/ISO-14001/ HACCPcertification.
How to apply MSEs with their EM No. are required to submit their application, duly completed, to
their local Director, MSME-DI addresses given in the following website: www.dcmsme.gov.in
Related scheme: 4. Micro & Small Enterprises Cluster Development Programme (MSE-CDP)
Description The Ministry has adopted cluster development approach as a key strategy for
enhancing productivity and competitiveness as well as capacity building of MSEs and their
collectives in the country. Clustering of units also enables the providers of various services
to them, including banks and credit agencies, to provide their services more economically,
thus reducing the costs and improving the availability of services for these enterprises.
Objectives ofthe scheme:
i. To support sustainability and growth of MSEs by addressing common issues such as
improvement of technology, skills and quality, market access and access to capital.
ii. To build the capacity of MSEs for common supportive action through the formation of self-
help groups, consortia, upgradation of associations, etc
iii. To create/upgrade infrastructural facilities in the new/existing industrial areas/clusters
ofMSEs.
iv. To set up common facility centres (for testing, training, raw material depot, effluent
treatment, complementing production processes, etc.)
Nature of assistance • Diagnostic Study
• Soft Intervention
• Setting up of Common Facility Centres (CFCs)
• Infrastructure Development (Upgradation/New)
Cost ofproject and Govt. of India assistance:
• Diagnostic study - maximum cost Rs.2.50 lakh.
• Soft interventions - maximum cost of project Rs.25.00 lakh, with GoI contribution of 75%
(90% for special category States and for clusters with more than 50%
women/micro/village/SC/STunits).
• Hard interventions, i.e., setting up of CFCs – maximum eligible project cost of Rs.15.00
crore with GoI contribution of 70% (90% for special category States and for clusters with
more than 50% women/micro/village/SC/ST units).
Infrastructure development in the new/existing industrial estates/areas; maximum eligible project cost
Rs.10.00 crore, with GoI contribution of 60% (80% for special category States and for clusters with
more than 50% women/micro/SC/ST units).
Who can apply Industrial associations/Consortia, Clusters
How to apply Only online applications are considered with effect from 01-04-2012. Hard copy of
applications need to be sent through State Governments or their autonomous bodies or field institutes
ofthe Ministry of MSME i.e., MSME-DIs. The proposals are to be approved by the Steering Committee of
MSE-CDP.
Related scheme: 5. Micro Finance Programme
Description The Union Government has launched a scheme of micro finance and tied up with
the existing programme of SIDBI by way of contributing towards security deposits required from the
MFIs/NGOs to get loan from SIDBI. The scheme is being operated in the under-served States and
under-served pockets/districts of other States.
Nature of assistance Government of India provide funds for micro finance programme to SIDBI, which
is called ‘Portfolio Risk Fund’(PRF).At present SIDBI takes fixed deposit equal to 10% of loan amount.
The share ofMFIs/NGOs is 2.5% of loan amount (i.e., 25% of security deposit) and balance 7.5% (i.e.,
75% of security deposit) is adjusted from funds provided by the Government of India.
Who can apply MFIs/NGOs
How to apply Submit the proposal in the prescribed form to SIDBI.
Related scheme: 6. MSME Market DevelopmentAssitance (MDA)
Description As part of comprehensive policy package for MSMEs, MSME-MDA scheme has
been announced with a view to increasing the participation of representatives of
participating units. The provision of MSME-MDA scheme has been modified
recently. MDAis offered in three forms as mentioned below:
1. Participation in the international exhibitions/fairs - For registered small & micro
manufacturing enterprises with DI/DIC.
2. Financial assistance for using Global Standards (GS1) in barcoding.
3. Recognised importance of barcoding and avail financial assistance through Office of the
DC (MSME).
Purchase and Price Preference Policy - This is administered through Single Point Registration
Scheme of NSIC. Under this, 358 items are reserved for exclusive purchase from MSME by the
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.
Nature of assistance The scheme offers funding up to 75% in respect of to and fro air fare
for participation by MSME entrepreneurs in overseas fairs/trade delegations. The scheme
also has provision of funding for producing publicity material (up to 25% of costs), sector
specific studies (up to Rs.2 lakh) and for contesting anti-dumping cases (50% up to Rs.1
lakh) - for individual MSMEs & associations.
Who can apply Individual MSMEs & industry associations.
How to apply Candidates meeting the eligibility criteria may send their applications to Office of
the DC (MSME) through the concerned MSME DIs.
Related scheme 7. NationalAwards (Individual MSEs)
Description MSMEs have registered tremendous growth and progress in terms of quality of
production, exports, innovation, product development and import substitution,
very much beyond the expected objectives of the setting up of MSMEs. Entrepreneurial efforts have
made it possible to produce a number of items, which were hitherto imported. In quite a few cases new
variants so produced are having additional attributes over their original versions and are capable of
solving a multitude of user problems. All this has become possible owing to the ambitions and visionary
spirit of entrepreneurs of MSMEs.
The MoMSME with a view to recognising the efforts and contribution of MSMEs, gives NationalAwards
annually to selected entrepreneurs and enterprises under the scheme ofNationalAwards.
Deserving entrepreneurs managing MSMEs having permanent registration/have
filed Entrepreneurs’ Memorandum Part-II with notified authorities. The MSMEs should have been in
continuous production/servicing at least during the last three years.
How to apply Eligible enterprises may send nominations in the prescribed proforma (may
download from the Ministry of MSME website) to Director, MSME-DI of the state where their MSME is
registered/they have filed Entrepreneurs’ Memorandum (EM).
Related scheme 8. National Manufacturing Competitiveness Programme (NMCP)
Description The National Manufacturing Competitiveness Council (NMCC) has finalised a
five-year national manufacturing programme. Ten schemes have been drawn up including
schemes for promotion of ICT, mini tool room, design clinics and marketing support for SMEs.
Implementation will be in PPP mode, and financing will be tied up. Under this plan following
schemes are being implemented.
1 Marketing support/Assistance to MSMEs (Bar Code).
2 Support for entrepreneurial and managerial development of SMEs through incubators.
3 Enabling manufacturing sector to be competitive through Quality Management Standard &
Quality Tech. Tools (QMS/QTT).
4 Building awareness on Intellectual Property Rights (IPR) for MSME.
5 (a) Lean manufacturing competitiveness scheme for MSMEs. (b)
Compendium of success stories.
6 (a) Design clinic scheme for design expertise to MSMEs manufacturing sector (DESIGN).
(b) Case studies of design projects under design clinic scheme for MSMEs.
7 Marketing assistance & technology upgradation scheme in MSMEs.
8 Technology and quality upgradation support to MSMEs.
9 Promotion of ICT in Indian manufacturing sector (ICT)
Nature of assistance Varies for each scheme; visit the following website: http://www.dcmsme.gov.in/
schemes/nmcp_scm.htm
Who can apply MSMEs
How to apply Submit the proposal in the prescribed form to be obtained from the DC (MSME).
i). Marketing Support/Assistance to MSMEs (Bar Code)
Description Under this scheme MSEs are encouraged and motivated to use bar-codes through
seminars and reimbursement of registration fees.
Nature of assistance Reimbursement of registration fee (one time and recurring for 3 years) for bar
coding. Financial assistance for reimbursement of 75% of one-time registration fee (Under MSE-MDA)
w.e.f. 1st January, 2002 and 75% of annual recurring fee for first three years (Under NMCP) w.e.f. 1st
June, 2007 paid by MSEs to GS1 India for the use ofbar coding.
Who can apply The scheme is applicable to those MSEs with EM-II registration and registration
with GS1 India for use ofbarcode.
How to apply On getting registration for use ofbarcode for products, (http://www.gs1india.org/),
take the following steps for reimbursement of fee:
• Fill the prescribed application form for claiming reimbursement on bar code.
• The application form along with formats for supporting documents may be collected from
the Director, MSME-DI, or can be downloaded from http://www.dcmsme.gov.in/
• The filled-in application form with required documents is to be submitted to the office of
MSME-DI.
• The address of MSME-DI is given on the website: www.dcmsme.gov.in/ MSME-
DO/DCmsmeaddress.html
ii). Entrepreneurial and Managerial Development of SMEs through Incubators
Description The scheme endeavours to provide early stage funding for nurturing innovative
business ideas (new indigenous technology, processes, products, procedures, etc.) which could be
commercialised in a year. Under this scheme financial assistance is provided for setting up ofbusiness
incubators.
Nature of assistance Funding support for setting up of ‘Business Incubators (BI)’: The cost may vary
from Rs.4 to 8 lakh for each incubatee/idea, subject to overall ceiling of Rs.62.5 lakh for each BI. Items
@ per BI:
(a) Upgradation of infrastructure Rs. 2.50 lakh
(b) Orientation/training Rs. 1.28 lakh
(c)Administrative expenses : Rs. 0.22 lakh, Thus the total assistance per BI - Rs. 66.50 lakh
Who can apply Any individual or MSME having innovative ideas ready for commercialisation can
apply to the host institution (e.g., IITs, NITs, technical colleges, research institutes, etc.). See the list
ofhost institutions at
http://www.dcmsme.gov.in/schemes/Institutions_Detail.pdf
Any technical institution (as given in the EoI) which wants to become host institution can apply to the
office of the Development Commissioner – MSME (DC-MSME) or their nearest MSME-DI for funding
support.
How to apply • Application can be made by the technical institution which wants to be host
institution once a Request For Proposal (RFP)/Expression of Interest (EoI) is released.
Any individual or MSME can apply directly to their nearest host institution, a list of host institutions is
given on the website: http://www.dcmsme.gov.in/ schemes/Institutions_Detail.pdf
iii). Enabling Manufacturing Sector to be Competitive through Quality Management
Standards and Quality Technology Tools
Description The scheme endeavours to sensitise and encourage MSEs to understand and adopt
latest Quality Management Standards (QMS) and Quality Technology Tools (QTT).
Nature of assistance • Funding support for introduction of appropriate course modules in technical
institutions
• Funding support for conducting ‘QMS awareness’ workshops (applicant – expert
organisation or industry associations)
• Funding support for conducting competition watch (C-watch), study and analysis
• Funding support for introduction of QMS and QTT in selected MSMEs (applicant– expert
organisation or industry association)
• Participation in international study mission (MSEs as selected by Monitoring andAdvisory
Committee)
• A total contribution of Rs.425 lakh per year to be made by the GoI for introduction of
course material, training the trainer, awareness workshop and other activities
• Funding support of Rs.1.25 lakh per programme to be provided for conducting awareness
programme.
• Under C-watch
~ GoI contribution of Rs.2.5 lakh for professional study on threatened
products.
~ GoI contribution ofRs.7.5 lakh for technical exposure visit
~ GoI contribution ofRs.2.5 lakh for procurement of samples
~ GoI contribution of Rs.5 lakh for product development
~ GoI contribution ofRs.1.5 lakh for popularisation of improved products
• GoI contribution of Rs.2.5 lakh/unit for covering the costs of diagnostic study and for
implementation of Quality Technology Tools/Quality Management Standards (25 to 50% cost
will be paid by the participating units)
• GoI contribution of Rs.2.5 lakh per SME for international visit (25% and 50% cost to be
collected by the micro and small enterprise respectively)
Who can apply : Expert organisations like Quality Council of India (QCI), National Recruitment
Board for Personnel and Training, Consultancy Development Corporation, National Productivity Council,
Standardisation Testing & Quality Certification (STQC, a Society under the Ministry of IT), IIQM (Indian
Institute of Quality Management), Industry Associations that have taken active interest in QMS/QTT,
technical institutions, engineering colleges, tool rooms and similar bodies, and MSEs.
How to apply MSEs or clusters may contact Office of the DC (MSME). The DC office will
finalise the MSME clusters for conducting the Awareness Programme on Quality Management Standards
and Quality Technology Tools (QMS/QTT).
iv). BuildingAwareness on Intellectual Property Rights (IPR)
Description The purpose of the scheme is to enhance awareness among the MSMEs about
Intellectual Property Rights, to take measures for protecting their ideas and business strategies.
Effective utilisation of IPR tools by MSMEs would also assist them in technology upgradation and
enhancing their competitiveness.
Nature of assistance Funding support for
• Conducting awareness/sensitisation programmes on IPR (Applicants – MSME
organisations and expert agencies)
• Conducting pilot studies for selected clusters/groups of industries (Applicants – MSME
organisations, competent agencies and expert agencies)
• Funding support for conducting interactive seminars/workshops (Applicants – MSME
organisations and expert agencies)
• Funding support for conducting specialised training on IPR (Applicants – Expert agencies)
• Funding support in the form of Grant on Patent/GI Registration (Applicants – MSME units
and MSME organisations)
• Funding support for setting up IP Facilitation Centre (IPFC) for MSME (Applicants –MSME
organisations and IPR facilitating agencies)
• Funding support for organising interaction with international agencies (Applicants –MSME
organisations and IPR facilitating agencies)
• GoI assistance ofRs.1 lakh per awareness programme
• GoI assistance ofRs.2.5 lakh per pilot study
• GoI assistance ofRs.2 lakh per programme of interactive seminar
• GoI assistance of Rs.6 lakh per short term training programme and Rs.45 lakh per long
term training programme
• For registered Indian MSMEs, one time financial support limited up to Rs.25,000 on grant
of domestic patent and Rs.2 lakh for foreign patent; for registering under Geographical
Indications of Goods Act, one time financial support limited up to Rs.1 lakh
• A total financial support by GoI up to Rs.65 lakh each for establishing IPFCs which will
include one-time grant of Rs.45 lakh and Rs.18 lakh as recurring expenses for 3 years, and
Rs.2 lakh as miscellaneous charges.
• Financial support by GoI up to Rs.5 lakh and Rs.7.50 per event for domestic interventions
and international exchange programme respectively.
Who can apply • Registered MSME units
• MSME organisations like industry associations, societies, cooperatives, firms, trusts,
NGOs, institutions and universities with a track record of assisting MSMEs
Related scheme 1. Growth Capital and EquityAssistance
Description The scheme provides adequate capital to meet growth aspirations of MSMEs and
helps existing small and medium businesses to make investments in marketing, brand building,
creation of distribution network, technical know-how, R&D, software purchase, etc.
Nature of assistance Assistance in the form of mezzanine/convertible instruments, subordinated debt
and equity
Who can apply Existing small and medium businesses in need of capital for growth
i). An MSME as per definition of Government of India (MSMEDAct)
ii). SIDBI’s existing customers (meeting internal rating criteria) or
i). Units with past 3 years of profitability and 2 years of satisfactory banking credit track
record (meeting internal credit rating criteria)
ii). Acceptable external rating from CRISIL, ICRA, D&B, SMERA, etc., would be desirable.
How to apply Submit the on-line enquiry form in the website
Related scheme 2. Refinance for Small Road Transport Operators (SRTOS)
Description Expenditure on the cost of chassis, body building, initial taxes/insurance and
working capital; second-hand vehicles are not eligible for assistance. The scheme is operated through
SFCs/SIDCs/banks.
Nature of assistance Refinancing
Who can apply Small road transport operators
How to apply Apply to SFCs/SIDCs/banks.
Related scheme 3. General Refinance
Description Setting up new MSEs or expansion, modernisation, diversification, etc., of existing
units and for all activities eligible for assistance under the scheme including professional
practice/consultancy venture and service sector units such as tourism related
activities/hospitals/nursing homes/polyclinics/hotels/restaurants/ marketing and industrial
infrastructural projects.
The scheme is operated through SFCs/SIDCs/banks.
Nature of assistance For setting up new MSEs or expansion, modernisation, diversification, etc.
Who can apply All forms ofMSEs (proprietary, partnership), company, society, etc.
How to apply Apply to SFCs/SIDCs/banks
Related scheme 4. Refinance for Textile Industry under Technology Upgradation Fund
(RTUF)
Description Installation of specified types of machinery in a new unit or in an existing unit by
way of replacement of existing machinery and/or expansion.
Scheme operated through SFCs/SIDCs/banks Nature of assistance Refinancing
Who can apply Textile industries
How to apply Apply to SFCs/SIDCs/banks
Related scheme 5. Acquisition of ISO Series Certification by MSE Units
Description Expenses on consultancy, documentation, audit, certification fees, equipment and
calibrating instruments required would be taken into account for determining loan requirement.
Scheme operated through SFCs/SIDCs/banks
Nature of assistance Financial support for ISO certification
Who can apply Existing MSEs having good record of past performance and sound financial
position. The concerns should: have been in operation for a period of at least two years; earned profit
and/or declared dividend during preceding two financial years; and, not be in default to
institutions/banks in payment of their dues.
How to apply Apply to SFCs/SIDCs/banks
Related scheme 6. Composite Loan
Description Assistance for equipment and/or working capital as also for worksheds
Scheme operated through SFCs/SIDCs/banks
Nature of assistance Loan limit - Not to exceed Rs.25 lakh
Who can apply Mocro and small industries
How to apply Apply to SFCs/SIDCs/banks
Related scheme 7. Single Window
Description Providing both term loans for fixed assets and loan for working capital through a
single agency.
The total working capital requirement of such units inclusive of all fund based facilities is to be taken
into account for determining the working capital facility eligible for refinance.
Scheme operated through SFCs/SIDCs/banks
Nature of assistance Loans for fixed assets and working capital
Who can apply Entrepreneurs setting up new projects in MSE sector, new promoters acquiring
unencumbered fixed assets of existing MSE concerns from PLIs and also existing well-run units
undertaking modernisation/ technology upgradation and potentially viable sick units undertaking a
rehabilitation scheme.
How to apply Apply to SFCs/SIDCs/banks
Related scheme 8. Rehabilitation of Sick Industrial Units
Description Provides assistance for rehabilitation ofpotentially viable sick units
Scheme operated through SFCs/SIDCs/banks
Nature of assistance Assistance for rehabilitation ofpotentially viable sick MSEs.
Who can apply Potentially viable MSE units conforming to the definition of sick MSE unit.
The assistance is meant for sick MSE units for which proper rehabilitation packages have been drawn
up. Units eligible for rehabilitation assistance should be capable of being restored to normal health
within a reasonable time.
How to apply Apply to SFCs/SIDCs/banks
Related scheme 9. Development of Industrial Infrastructure for MSME Sector
Description Setting up of industrial estates/development of industrial areas including such
projects found eligible under the KVIC model.
Scheme operated through SFCs/SIDCs/banks
Nature of assistance Financial support for development of industrial infrastructure Who can apply
Promoters of industrial infrastructure
How to apply Apply to SFCs/SIDCs/banks
Related scheme 10. Integrated Infrastructural Development (IID)
Description IID centres with facilities like water supply, power, telecommunication, common
services centre including technological back up services for MSEs in rural backward areas.
The cost of improving/upgrading deficient infrastructural facilities to increase productivity and optimum
utilisation of existing centres/clusters in backward/rural areas.
Scheme operated through SFCs/SIDCs/banks
Nature of assistance Ceiling on project cost is Rs.500 lakh. Cost in excess of Rs.500 lakh may be met
by
the State/UT Government. Of Rs.500 lakh. Rs.200 lakh by grant from GoI and loan from SIDBI, from
any other bank/FI of Rs.300 lakh. In case of NE region, amount of Grant from GoI and loan from
SIDBI, from any other bank/FI would be Rs.400 lkh and Rs.100 lakh respectively.
Who can apply Implementing agencies (a public sector corporation or a corporate body or a good
NGO with a sound financial position) entrusted with the task of implementing the
scheme by the concerned State/Union Territory Government.
How to apply Apply to SFCs/SIDCs/banks
Related scheme 11. Bills Re-discounting Equipment
Description For sale/acquisition of machinery on deferred payment terms for setting up of new
MSME units is also for expansion, diversification, modernisation, replacement, addition ofbalancing
equipment, etc.
Nature of assistance Operated through scheduled commercial banks Usance ofbills - Normally 2-5 years
Who can apply Manufacturer-sellers/purchaser-users of indigenous machinery/capital equipment
one ofwhom should be in the small scale sector
How to apply In the prescribed proforma given in the SIDBI
Related scheme 12. Bills Re-discounting - Equipment (Inland Supply Bills)
Description To encourage bills culture as a method of working capital financing to ensure timely
payment, trade bills arising out of the supply of goods by MSME units and discounted with commercial
banks either by seller or buyer are re-discounted by the banks with SIDBI.
Scheme operated through scheduled commercial banks
Nature of assistance Unexpired usance - Not more than 90 days.
Who can apply MSME suppliers
How to apply Apply to scheduled commercial banks
NABARD Schemes
Related scheme 1. Producer Organisations Development Fund (PODF)
Description Extending credit facilities to take up production, aggregation, processing and/or
marketing activities
Nature of assistance Fund support to producers organisations across three levels: credit
support,
capacity building & market linkage
Who can apply Marketing federations/corporations/cooperatives
How to apply Apply to banks
Related scheme 2. Dairy Venture Capital Fund
Description Milch animal
Nature of assistance Interest-free loan - 50% ofthe outlay
Who can apply Individuals
How to apply Apply through banks
Related scheme 3. Establishing Poultry Estates and Mother Units for Rural Backyard
Poultry
Description Scheme for poultry development. The scheme has the following three components
(i) Assistance to state poultry farms
(ii) Rural backyard poultry and
(iii)Poultry estates
Nature of assistance Unit cost (unit size 1,500 chicks per batch): Rs.1.36 lakh
Who can apply Individuals
How to apply Apply to banks
Related scheme 4. Establishment/Modernisation of Rural Slaughter Houses
Description The scheme is subsidy based credit linked scheme for establishment/modernisation
ofrural slaughterhouses
Nature of assistance Capital subsidy - 50% ofthe total financial outlay
Who can apply Any company, partnership firm, NGO and individual entrepreneurs
How to apply Apply to banks
Related scheme 5. Commercial Production Units of Organic Inputs
Description The scheme has two components: Fruit and vegetable market waste compost and
bio-fertitisers - bio-pesticides production units
Nature of assistance Subsidy @ 25% of the capital cost ofthe project
Who can apply Individuals
How to apply Apply to banks
Related scheme 6. Poultry Venture Capital Fund
Description The scheme:
• encourages poultry farming activity especially in non-traditional states and provides
employment opportunities in backward areas;
• improves production of poultry products which have ready market all over country;
• improves productivity of unscientifically run units through technology up-gradation;
• provides quality meat to consumers in hygienic conditions, and improves hygienic sale
of poultry meat and products in urban areas and neighbourhood societies through poultry
dressing and marketing outlets;
• improves productivity and facilitates rearing of other poultry species like quails, ducks,
turkeys, which have good potential.
Nature of assistance • Entrepreneurs contribution (margin) - for loans upto Rs.1 lakh, banks may not
insist on margin as per RBI guidelines. For loans above Rs.1 lakh: 10% (minimum)
• Back ended capital subsidy - 25% of outlay (33.33 % for SC/ST farmers and NE states
including Sikkim)
• Effective bank loan (excluding eligible subsidy as above) - balance portion, minimum
40% of outlay
Who can apply • Farmers, individual entrepreneurs, NGOs, companies, cooperatives, groups of
unorganised and organised sector which include SHGs, Joint Liability Groups (JLGs), etc.
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