MINISTRY OF MICRO, SMALL & MEDIUM ENTERPRISES

GOVERNMENT OF INDIA

e-book on
Schemes for MSMEs

MSME SCHEMES 1
 Table of Content
Schemes implemented by M/o MSME & its organisatons

1. Prime Minister’s Employment Generation Programme

(PMEGP) 4

2. 2nd Loan for up-gradation of the existing PMEGP/MUDRA

units 6

3. Credit Guarantee Scheme for Micro & Small Enterprises

(CGTMSE) 8

4. Credit Linked Capital Subsidy Component (CLCS & TU 10

Scheme)

5. Procurement and Marketing Support (PMS) scheme 12

6. International Cooperation (IC) Scheme 14

7. Micro & Small Enterprises Cluster Development Programme (MSE 16

– CDP)

8. Scheme of Fund for Regeneration of Traditional Industries 18

(SFURTI)

9. A Scheme for Promotion of Innovation, Rural Industries and 20

Entrepreneurship (ASPIRE)

10. ZED Certification Scheme 22

11. Lean Manufacturing Competitiveness for MSMEs 24

12. Design Clinic for Design Expertise to MSMEs 26

13. Digital MSME 28

14. Entrepreneurial and Managerial Development of SMEs 30

through Incubators

MSME SCHEMES 2
 15. Awareness on Intellectual Property Rights (IPR) 32

16. Entrepreneurship Skill Development Programme (ESDP) 34

Scheme

17. National SC-ST Hub 36

18. Assistance to Training Institutions (ATI) Scheme 38

19. Coir Industry Technology Upgradation Scheme 40

20. Skill Upgradation and Mahila Coir Yojana 42

21. Interest Subsidy Eligibility Certificate (ISEC) 44

22. Work-Shed Scheme for Khadi Artisans 46

23. Rojgar Yukt Gaon 48

24. Mahatma Gandhi Institute for Rural Industrialization (MGIRI) 50

New Schemes

1. Pottery Activity under Gramodyog Vikas Yojana (GVY) scheme 52

2. Beekeeping Activity under “Gramodyog Vikas Yojana(GVY) 54

Scheme

3. Agarbatti Making Project under “Gramodyog Vikas 56

Yojana(GVY) Scheme

4. Tool Rooms and Technical Institutions - A Component of 58

Infrastructure Development & Capacity Building scheme

MSME SCHEMES 3
 Prime Minister’s Employment Generation
Programme (PMEGP)

Objective:

• The scheme aims to provide financial assistance to set

up self-employment ventures and generate sustainable
employment opportunities in rural as well as urban areas.

• To generate sustainable and continuous employment

opportunities to rural and unemployed youth as well
as prospective traditional artisans and thereby halt
occupational migration.

Key Benefits:

• Bank-financed subsidy program for setting up new micro-

enterprises in non-farm sector.

• Margin Money subsidy on Bank Loan ranges from 15% to

35% for projects up to Rs. 25 Lakh in manufacturing and Rs.
10 Lakh in the service sector

• For beneficiaries belonging to special categories such

as SC/ST/Women/PH/Minorities/Ex-Servicemen/NER, the
margin money subsidy is 35% in rural areas and 25% in
urban areas. The maximum cost of projects is Rs. 25 lakh
in the manufacturing sector and Rs.10.00 lakh in the service
sector.

Scheme applicable for:

• Any individual, above 18 years of age can apply

• Self Help Groups, Institutions registered under Societies,

Production Co-operative Societies and Charitable Trusts.

Detailed Information:

• The own contribution of the beneficiary is 10% of the project

MSME SCHEMES 4
 cost in case of general category and 5% of the project cost
in case of reserved category (SC/ST/OBC/PH/Women/Ex
Servicemen/ NER) beneficiaries.

• If the application for loan is approved, Banks sanction

and release the balance amount of 90 to 95 percent of the
total project cost suitably for setting up of the units by the
beneficiaries.

• In order to have sustainability of the projects/units set up

under the scheme, support services are also provided in
the form of Backward & Forward Linkages by organizing
events like awareness camps, workshops, EDP training to
the beneficiaries, exhibitions, etc.

• Government of India has introduced online process flow

of application and disbursement of Margin Money directly
to financing branches.

• One-page online application form is mandatory for

individuals and institutional beneficiaries on the e-portal.
The application form/PMEGP MIS portal is mobile friendly.
SMS/e-mail alerts sent to the applicant automatically by
the system or by the concerned officials at the process of
each stage.

• Model Projects of different KVI activities have been put up

on PMEGP e-portal for the benefit of potential beneficiaries.

• Model Village Industries projects prepared by NSIC have

also been linked to the website.

• To increase the registration of MSMEs in the country, the

Government has undertaken measures that the PMEGP
units can adopt the Udyog Aadhar Memorandum (UAM) to
register online.

How to apply:

• Apply on https://www.kviconline.gov.in/pmegpeportal/
pmegphome/

MSME SCHEMES 5
 2nd Loan for up-gradation of the existing
PMEGP/MUDRA units

Objective:

• With an objective to assist exiting units for expansion and

upgradation, the scheme provides financial assistance to
successful/ well performing units.

• The scheme also caters to the need of the entrepreneurs

for bringing new technology/ automation so as to
modernize the existing unit.

Key Benefits:

• Maximum subsidy would be 15% of the project cost (20%

for NER and Hill States). The balance amount of the total
project cost is provided by Banks as term loan.

Scheme applicable for:

• Existing well performing PMEGP/MUDRA units

Detailed Information:

• Further financial assistance scheme for expansion/

upgrade the existing PMEGP/MUDRA units for manufacturing
and Service/ Trading units from the year 2018-19

• The maximum cost of the project under manufacturing

sector for up-gradation is Rs.1.00 crore and Rs.25.00 lakh
under Service/ Trading sector.

• Maximum subsidy would be 15% of the project cost (20%)

for NER and Hill States) i.e. Rs. 15.00 lakh in Non-NER and Rs.
20.00 Lakh for NER and Hill States. The balance amount of
the total project cost shall be provided by Banks as term

MSME SCHEMES 6
 loan.

• All existing units financed under PMEGP/MUDRA Scheme

whose margin money claim has been adjusted and the
first loan availed has been repaid in stipulated time are
eligible to avail the benefits

• The units should have been making profit for the last three
years.

• Beneficiary can apply to the same financing bank, which

sanctioned the loan for their unit, or to any other financing
bank, which is willing to extend credit facility for second
loan.

• The beneficiary can choose any implementing agency

and that may be different from the agency chosen for 1st
loan.

• Registration of Udyog Aadhar Memorandum (UAM) is

mandatory.

• The 2nd loan should lead to additional employment

generation.

• To submit the application under 2nd loan for up-gradation,

the beneficiaries have to apply by filling application form
on PMEGP e-Portal

How to apply:

• Apply on https://www.kviconline.gov.in/pmegpeportal/
pmegphome/

MSME SCHEMES 7
 Credit Guarantee Scheme for Micro &
Small Enterprises (CGTMSE)

Objective

• To encourage first generation entrepreneurs to venture

into self-employment opportunities by facilitating
credit guarantee support for collateral free / third-party
guarantee-free loans to the Micro and Small enterprises
(MSEs), especially in the absence of collateral.

Key Benefits:

• Credit guarantee for loans up to Rs. 2 crores, without

collateral and third-party guarantee.

• Guarantee coverage ranges from 85% (Micro Enterprise

up to Rs 5 lakh) to 75% (others).

• 50% coverage is for retail activity.

Scheme applicable for

• Existing Entrepreneurs and Aspiring Entrepreneurs

Detailed Information

• Any collateral/ third party guarantee free credit facility

(both fund as well as non-fund based) extended by eligible
institutions, to new as well as existing Micro and Small
Enterprises, including Service Enterprises, with a maximum
credit cap of 200 lakh (Rupees Two Hundred lakh only)
are eligible for guarantee under the scheme. Recently,
guarantee coverage made eligible to select NBFCs and
Small Finance banks.

• The guarantee cover available under the scheme is to the

extent of 50%/ 75% / 80% & 85% of the sanctioned amount

MSME SCHEMES 8
 of the credit facility. The extent of guarantee cover is 85%
for micro enterprises for credit up to 5 Lakh. The extent of
guarantee cover is 50% of the sanctioned amount of the
credit facility for credit from 10 lakh to 100 Lakh per MSE
borrower for retail trade activity.

• The extent of guarantee cover is 80% for (i) Micro and

Small Enterprises operated and/or owned by women;
and (ii) all credits/loans in the North East Region (NER) for
credit facilities up to 50 Lakh. In case of default, the trust
settles the claim up to 75% of the amount in default of the
credit facility extended by the lending institution for credit
facilities up to 200 Lakh.

How to apply

• Through Member Lending Institutions (Banks and NBFCs)

MSME SCHEMES 9
 Credit Linked Capital Subsidy
Component (CLCS & TU Scheme)

Objective

• The objective is to facilitate technology up-gradation

in MSEs with state-of-the-art technology, with or without
expansion and also for new MSEs which have set up their
facilities by providing an upfront capital subsidy of 15 per
cent (on institutional finance of upto Rs 1 crore availed by
them).

Key Benefits

• Induction of established and improved technologies.

• 15% Subsidy on institutional credit up to Rs 1.00 crore with

a subsidy cap of Rs.15.00 lakh.

Scheme applicable for

• Existing Entrepreneurs and Aspiring Entrepreneurs

Detailed Information

• The objective of CLCS component of CLC-TUS is to

facilitate technology to MSEs through institutional finance
for induction well established and proven technologies
in the specific sub-sector/products approved under the
scheme:

• Upfront subsidy of 15% on institutional credit up to Rs.

1.0 crore (i.e. a subsidy cap of Rs. 15.00 lakh) for identified
sectors/subsectors/ technologies.

• In order to ensure fair inclusion of SC/ST category, women

entrepreneurs and entrepreneurs from NER, Hill States
(Jammu & Kashmir, Himachal Pradesh & Uttarakhand)

MSME SCHEMES 10
 Island Territories (Andaman & Nicobar and Lakshadweep)
and the identifies Aspirational Districts/ LWE Districts, the
subsidy has also been proposed to be admissible also
for investment in acquisition/ replacement of plant &
machinery/equipment & technology up-gradation of any
kind.

How to apply

• As per Scheme guidelines - Through Prime lending

Institution / Nodal Banks.

MSME SCHEMES 11
 Procurement and Marketing Support
(PMS) scheme

Objective

• To enhance the marketability of products and services in

the MSME sector.

• To promote new market access initiatives, create

awareness and educate the MSMEs about various
marketing relevant topics

• To create more awareness about trade fairs, digital

advertising, e-marketing, GST, GeM portal, public
procurement policy and other related topics etc.

Key Benefits

• Participation of Individual MSEs in domestic Trade Fair/

Exhibition

• Capacity building of MSMEs in Modern Packaging

Technique / Development of Marketing Haats.

• Organizing Domestic Trade Fair& Exhibition/ Vendor

Development Programs/ National & International
Workshops & Seminars/ Awareness programs

Scheme applicable for

• Existing Entrepreneurs

Detailed Information

• Participation of individual MSEs in domestic trade fairs/

exhibitions across the country: Maximum Budgetary
support (space rent and contingency) upto Rs.1.5 Lakh max.
for Metro & A class cities. Rs 1.0 Lakh max. for Class B cities /
NER/ J&K/ Hilly States and for other cities Rs.0.80 Lakh max.

• Organizing Domestic Trade Fairs/ Exhibition and

MSME SCHEMES 12
 participation in trade fairs/exhibitions by the Ministry/Office
of DC (MSME)/Government organizations:

• Maximum Budgetary support for space rent and advt. &

publicity for the event is as follows,

• Regional :(State/District): Rs.30.00 Lakh max.

• National: Rs.40.00 Lakh .max.

• International: As decided by Empowered Committee

subject to approval of Deptt. Of Expenditure.

• Capacity building of MSMEs in modern packaging

technique: Maximum Budgetary support of Rs.1.0 lakh max.
for ordinary packaging consultancy and Rs.1.5 lakh max. for
green packaging consultancy for MSME unit.

• Development of Marketing Haats. Maximum Budgetary

support: For Development of new MSME Haats, upper limit
of GIA will not exceed Rs. 50 lakh max.

• For Renovation/up-gradation of existing Marketing Haats,

upper limit of GIA will not exceed Rs.20 Lakh max.

• Vendor Development Programmes: Maximum Budgetary

support is as follows; State Level Vendor Development
Programme (SLVDP): Rs. 1 Lakh max. (One day) National
Level Vendor Development Programme (NLVDP): Rs. 10 lakh
max. for A class city and Rs.7.0 lakh max. for other cities.
(2-3 days)

• International/National Workshops/Seminars.: Maximum

Budgetary Support would be Rs 5.0 lakh maximum or actual
whichever is less and for National Workshop/Seminar
and Rs 7.5 Lakh maximum or actual whichever is less for
International Workshop/Seminar

• Awareness Programs: Maximum Budgetary support of Rs.

70,000/- max. per program (One day)

How to apply

• Apply on https://my.msme.gov.in/MyMsme/Reg/COM_
Matu.aspx

MSME SCHEMES 13
 International Cooperation
(IC) Scheme

Objective

• To enhance the competency of MSMEs, capture new

markets for their products, and explore new technologies
for improving manufacturing capacity, etc.

• The scheme supports MSMEs by way of participation in

international events for exploring export opportunities,
access to international business networks, technology
upgradation/modernization, improved competitiveness,
awareness of better manufacturing practices etc.

Key Benefits:

• Reimbursement for participation/visit in international

exhibitions/fairs

• Reimbursement for holding international conferences and

seminars by industry associations/Govt. organizations.

Scheme applicable for:

• Existing Entrepreneurs

Detailed Information:

• Assistance provided under the scheme:

• For Participation in International Exhibition/Fair:

• Economy class Air fare fair (maximum of Rs. 1

Lakh).

• Stall charges (maximum Rs. 1.25 Lakh).

MSME SCHEMES 14
 • Freight Charges (maximum Rs. 25,000/-)

• Entry/Registration fee up to Rs. 5000/-

• For Organizing International Conference in India

• Cost for organizing the event subject to a

maximum of Rs. 4.50 Lakh.

• Airfare for foreign speakers (minimum 03) up to

a maximum of Rs. 2.50 lakh.

• For more detailed information refer to Scheme guidelines,

on the following link: https://msme.gov.in/sites/default/
files/IC-Scheme- Guidelines-June-2018.pdf

How to apply:

• Apply on http://ic.msme.gov.in/

MSME SCHEMES 15
 Micro & Small Enterprises Cluster
Development Programme (MSE – CDP)

Objective

• To support the sustainability and growth of MSEs by

addressing common issues such as improvement of
technology, skills & quality, market access, etc.

• To create/upgrade infrastructural facilities in the new /

existing Industrial Areas / Clusters of MSEs.

• To set up Common Facility Centres (for testing, training,

raw material depot, effluent treatment, complementing
production processes, etc).

• Promotion of green & sustainable manufacturing

technology for the clusters.

Key Benefits:

• Creation of Common Facility Centers including Plug &

Play Facilities.

• Support for Infrastructure Development Projects including

Flatted Factory Complexes.

Scheme applicable for:

• Existing Entrepreneurs (in form of a SPV).

Detailed Information:

• Common Facility Centers: Creation of “tangible assets”

such as Common Production / Processing Centre, Design
Centers, Testing Facilities including Plug & Play Facilities.
GoI Assistance: up to 90% of the maximum Project cost of
Rs. 20 crores.

- Infrastructure Development: Development of land, roads,

drainage, power distribution etc. in new / existing industrial

MSME SCHEMES 16
 (multi-product) areas / estates / Flatted Factory Complex.
GoI Assistance: up to 80% of the maximum Project cost of
Rs. 15 crores.

How to apply

• Apply on https://cluster.dcmsme.gov.in/

MSME SCHEMES 17
 Scheme of Fund for Regeneration of
Traditional Industries (SFURTI)

Objective

• To organize the traditional industries and artisans into

clusters in order to make them competitive and provide
support for their long- term sustainability.

Key Benefits:

• Support traditional artisans to provide sustainable

employment

• Government of India support up to Rs. 2.5 cr. up to 500

artisans and Rs. 5 cr. for more than 500 artisans

• Set up physical infrastructure with CFCs, latest machines,

training, etc. in clusters.

Scheme applicable for:

• Existing artisans from traditional industries

Detailed Information:

• Assistance and support to traditional industry artisans

to provide them sustainable employment through Hard
Intervention in setting up physical infrastructure with CFCs,
raw material banks, latest machines, and Soft Intervention
in skill development, market promotion initiatives, etc. in
clusters.

• Financial assistance of up to 90% (95% in NER, J&K and

Hill Areas) of Hard Intervention cost and entire cost of Soft
Intervention

MSME SCHEMES 18
 How to apply

• Apply on https://sfurti.msme.gov.in/SFURTI/Home.aspx

MSME SCHEMES 19
 A Scheme for Promotion of Innovation, Rural
Industries and Entrepreneurship (ASPIRE)

Objective

• To set up a network of technology centres and incubation

centres to accelerate entrepreneurship and promote
innovation to further strengthen the competitiveness of
MSME sector.

Key Benefits

• Set up Livelihood Business Incubators (LBIs) and

Technology Business Incubators (TBIs) to skill youths for
own enterprises and incubation of innovative ideas

• Maximum Rs. 1 cr. to Government agencies and maximum

Rs. 50 Lakh to private agencies for procuring plant and
machinery

• Maximum Rs. 1 cr. given to new TBIs and maximum Rs.

30 Lakh to existing TBIs for procurement of plants and
machinery.

Scheme applicable for:

• For LBIs:

• Any agency/institution of Govt. of India/ State Govt.

• Any Private Institution under PPP mode with any

agency of Govt. of India/State Govt.

• For TBIs:

• Existing Incubation Centers under Ministries/

Departments of Govt. of India

• National/ Regional institutions of Govt. of India/ State

Govt.

• New TBIs can be set up by Industry Associations

Academic Institutions, R&D labs, Universities, Govt.

MSME SCHEMES 20
 entities and Technology Parks

Detailed Information

• LBIs are set up to train/skill youths in various vocations/

fields primarily in agro-rural space to enable them, either
to set up own enterprises or seek wage employment in
related fields/industries.

• TBIs are set up to promote youths to incubate new and

innovative ideas in agro-rural space by providing basic
incubation facilities.

How to apply

• Proposal to be filled up as per the prescribed format given

in https:// aspire.msme.gov.in and submitted to the Ministry
through Member Secretary, Scheme Steering Committee
at js.ari@nic.in

MSME SCHEMES 21
 ZED Certification Scheme

Objective

• The objective of the scheme is to enable MSMEs for

manufacturing of quality products. by inculcating Zero
Defect & Zero Effect practices in manufacturing processes,
ensure continuous improvement thereby supporting the
Make in India initiative.

Key Benefits

• Promote adaptation of Quality tools/ systems and Energy

Efficient manufacturing.

• Financial assistance will be provided to the MSMEs in

obtaining a ZED certification.

• Reimbursement of Certification fees/ Consultancy charges

on successful certification, subject to an upper ceiling as
per the scheme guideline. This can be claimed only once
each for National and International Standards.

• For MSMEs supplying for Defence, reimbursement shall

be admissible additionally on Defence related certificates/
Standards only once.

Scheme applicable for

• Existing Entrepreneurs

Detailed Information

• The scheme envisages promotion of Zero Defect and Zero

Effect (ZED) manufacturing amongst MSMEs

• Encourage and Enable MSMEs for manufacturing of

quality products using latest technology tools & to

MSME SCHEMES 22
 constantly upgrade their processes for achievement of
high productivity and high quality with the least effect on
the environment.

• Develop an Ecosystem for Zero Defect Zero Effect

Manufacturing in MSMEs, for enhancing competitiveness
and enabling exports.

• Promote adoption of Quality and recognizing the efforts of

successful MSMEs.

• Increase public awareness on demanding Zero Defect and

Zero Effect Products through the ZED Rating and Grievance
Redressal Portal.

How to apply

• Check on http://dcmsme.gov.in/schemes/clcs-tus/
Operational_Guidelines_ZED.pdf

MSME SCHEMES 23
 Lean Manufacturing Competitiveness
for MSMEs

Objective

• To enhance the manufacturing competitiveness of MSMEs

through the application of various Lean Manufacturing (LM)
techniques by – Reducing waste; Increasing productivity;
Introducing innovative practices for improving overall
competitiveness; Inculcating good management systems;
and Imbibing a culture of continuous improvement

Key Benefits

• Financial assistance is provided for implementation

of lean manufacturing techniques, primarily the cost of
lean manufacturing consultant (80% by GoI and 20% by
beneficiaries).

Scheme applicable for

• Existing Entrepreneurs

Detailed Information

• The objectives of the Scheme are to enhance the

manufacturing competitiveness of MSMEs through the
application of various Lean Manufacturing (LM) techniques.

• The scheme will be implemented in mini clusters spread

all over the country for all manufacturing sectors. The
Scheme will be implemented by National Monitoring and
Implementing Units (NMIUs), under the overall directions of
DC (MSME).

MSME SCHEMES 24
 How to apply

• Check on http://www.dcmsme.gov.in/schemes/clcs-tus/
LEAN-Operational-Guidlelines.pdf

MSME SCHEMES 25
 Design Clinic for Design
Expertise to MSMEs
Objective

• To provide expert advice and cost-effective solutions

on real-time design problems for the MSMEs in India and
to enhance their competitiveness in the global markets
through new product development or value addition for
existing problems.

Key Benefits

• To facilitate MSMEs to develop new Design strategies and

or design related products through design interventions
and consultancy. Financial assistance to the MSMEs for
engagement of design consultants for design intervention
(GoI contribution @ 75% for micro, 60% for SMEs for the
project range up to Rs. 40 lakh).

• The Design Scheme shall support design work by

reimbursing 75% of expenses incurred up to Rs. 1.5 lakh for
final year student project done for MSMEs

Scheme applicable for

• Existing Entrepreneurs

Detailed Information

• To bring Indian manufacturing sector and Design

expertise/ Design fraternity on to a common platform
and to provide expert advice and cost-effective solution
on real time design problems, resulting in new product
development, continuous improvement and value addition
for existing products including new products.

MSME SCHEMES 26
 How to apply

• MSMEs can submit their proposal to Implementing Agency

(IA) as per scheme guideline.

• The scheme guideline at: http://www.dcmsme.gov.in/

schemes/Design-Guidelines-CLCS-TUS-2019-2020.pdf

MSME SCHEMES 27
 Digital MSME

Objective

• To promote Information and Communication Technology

(ICT) in MSME Sector by adopting ICT tools and applications
in their production and business process.

• The scheme is also aimed at creating awareness,

supporting developments and e-platforms, creating
literacy, training and promoting digital marketing in MSME
sectors

Key Benefits

• To digitally empower MSMEs and enhance their

performance for greater competitiveness with low cost
and high efficiency.

Scheme applicable for

• Existing Entrepreneurs

Detailed Information

• The main objective of scheme is to make MSMEs digitally

empowered and motivate them to adopt ICT tools and
applications in their production & business processes with
a view to improve their competitiveness in national and
international Market.

MSME SCHEMES 28
 How to apply

• Apply at: http://www.dcmsme.gov.in/schemes/

DigitalMSME-Guideline-CLCS-TUS-2019-2020.pdf

MSME SCHEMES 29
 Entrepreneurial and Managerial
Development of SMEs through Incubators

Objective

• To promote emerging technological and knowledge

based innovative ventures that seek the nurturing of ideas
from professionals beyond the traditional activities of
Micro, Small & Medium Enterprises (MSMEs)

Key Benefits

• Funding support up to Rs. 15 Lakh for development of

innovative ideas into commercial products.

• Seed funding support up to Rs. 100 Lakh for setting up new

units for commercialization of successful innovative ideas

Scheme applicable for

• Existing Entrepreneurs and Aspiring Entrepreneurs

Detailed Information

• The main objective of the scheme is to promote &

support untapped creativity of individual and to promote
adoption of latest technologies in manufacturing as well as
Knowledge based innovative MSMEs (ventures) that seek
the validation of their ideas at the proof of concept level.

• The scheme also supports engagement with Enablers

who will advise such MSMEs in expanding the business by
supporting them in design, strategy and execution. The
Enablers will play a pivotal role and would be integral part

MSME SCHEMES 30
 of the business development.

How to apply

• Apply at: http://www.dcmsme.gov.in/schemes/

Incubator-Guidelines-CLCS-TUS-2019-2020.pdf

MSME SCHEMES 31
 Awareness on Intellectual Property
Rights (IPR)

Objective

• To enhance awareness among the MSMEs about

Intellectual Property Rights, to take measures for protecting
their ideas and business strategies thereby assisting them
in in technology upgradation and enhancement of their
competitiveness.

Key Benefits

• Reimbursement of Patent/Trademark/GI

• Patent:

• Indian Patent up to Rs.1.00 Lakh

• Foreign Patent up to Rs. 5.00 Lakh

• Trademark up to Rs. 0.10 Lakh

• GI Registration Rs. 2.00 Lakh

• Assistance for setting up IP Facilitation Centre up to Rs.

1.00 cr. for period of 5 years

Scheme applicable for

• Existing Entrepreneurs

Detailed Information

• To enhance the awareness of Intellectual Property

Rights (IPRs) amongst the MSMEs to encourage creative
intellectual endeavor in Indian economy;

MSME SCHEMES 32
 • To take suitable measures for the protection of ideas,
technological innovation and knowledge-driven business
strategies developed by the MSMEs for;

• To provide appropriate facilities and support for protection

and commercialization of Intellectual Property (IP) for the
benefit of MSME sector;

• To assist SMEs in effective Utilization of IPR Tools for

technology up-gradation, market and business promotion
and competitiveness. enhancement.

How to apply

• View IPR Guidelines http://www.dcmsme.gov.in/schemes/

IPR-Guidelines-CLCS-TUS-2019-2020.pdf

MSME SCHEMES 33
 Entrepreneurship and Skill
Development Programme (ESDP) Scheme

Objective

• To promote new enterprises, capacity building of existing

MSMEs and inculcating entrepreneurial culture in the
country

Key Benefits

• Widen the base of entrepreneurship by development,

achievement, motivation and entrepreneurial skill to the
different sections of the society.

Scheme applicable for

• Aspiring and Existing Entrepreneurs

Detailed Information

• Entrepreneurship/ Self-employment awareness and

motivation to different sections of the society including
SC/ ST/ Women, differently abled, Ex-servicemen and BPL
persons as career options.

• Enterprise Facilitation for Ideation, Mentoring and

incubation, Credit facilitation, Market accessibility,
Enterprise Clinic, Diagnostic studies in the event of sickness,
counseling and other facilities.

• Entrepreneurship & Skill Training in Agro Based Products,

Hosiery, Food & Fruit Processing Industries, Carpet Weaving,
Mechanical Engineering Workshop/ Machine Shop, Heat
Treatment, Electroplating, Basic/Advance Welding/
Fabrication/Sheet metal work, Basic/ Advance Carpentry,
Glass & Ceramics etc.

• Management capacity building Training to Existing

Entrepreneurs and their supervisory staff in Industrial

MSME SCHEMES 34
 Management, Human Resource Management, Marketing
Management, Export Management/Documentation &
Procedures, Materials Management, Financial/Working
Capital Management, Information Technology, Digital
Marketing, Quality Management/QMS/ISO 9000/EMS,
WTO, IPR, Supply Chain Management, Retail Management,
Logistics Management etc.

How to apply

• To be apply through MSME-DI, MSME-TC

websites. The scheme link - http://dcmsme.gov.in/
Enterprise&skillDevelopment.htm

MSME SCHEMES 35
 National SC-ST Hub

Objective

• To provide professional support to Scheduled Caste and

Scheduled Tribe Entrepreneurs to fulfill the obligations
under the Central Government Public Procurement
Policy for Micro and Small Enterprises Order 2012, adopt
applicable business practices and leverage the Stand-Up
India initiatives.

Key Benefits

• To achieve 4% Public Procurement target from SC-ST

entrepreneurs

• Facilitating SC/ST Entrepreneurs to be part of vendor

development programs and mentoring support

• Collection, collation and dissemination of information

regarding SC/ST enterprises and entrepreneurs

• Distribution of trade specific tool kits to trained candidates

Scheme applicable for

• Existing and Aspiring SC/ST Entrepreneurs

Detailed Information

• The National SC-ST Hub (NSSH) has been set up to provide

professional support to Scheduled Caste and Scheduled
Tribe Entrepreneurs to fulfil the obligations under the Central
Government Public Procurement Policy for Micro and Small
Enterprises Order 2012, adopt applicable business practices
and leverage the Stand-Up India initiative. The key action
areas of NSSH include vendor development, participation in

MSME SCHEMES 36
 public procurement, building reliable database, mentoring
and handholding support, policy advocacy with states,
credit facilitation, capacity building, private affirmative
action, technology upgradation, marketing support, and
special subsidies under various schemes. The NSSH works
on the mentioned priority areas through various sub-
schemes which are as follows:

• Special Credit Linked Capital Subsidy Scheme

• Special Marketing Assistance Scheme

• Single Point Registration Scheme

• Bank Loan Processing Reimbursement Scheme

• Bank Guarantee Charges Reimbursement Scheme

• Testing Fee Reimbursement Scheme

• Export Promotion Council Membership Reimbursement

Scheme

• Top 50 NIRF Rated Management Institution’s Short-Term

Training Program Fee Reimbursement Scheme

How to apply

• Apply on https://www.scsthub.in/

MSME SCHEMES 37
 Assistance to Training Institutions
(ATI) Scheme

Objective

• To create and strengthen infrastructure and assistance

for entrepreneurship and skill development training
programmes.

Key Benefits

• Support for infrastructure and capacity building of training

institutions of Ministry of MSME and existing State level EDIs.

• Support for skill development programmes by training

institutions of the Ministry of MSME.

Scheme applicable for

• Only for training institutions of Ministry of MSME and State

level EDIs.

Detailed Information

• Assistance may be provided for creation or strengthening/

expansion of infrastructure, including opening of new
branches/centres to training institutions of Ministry of MSME
and for meeting revenue deficit, if any, of National Institute
for Micro, Small and Medium Enterprises (NIMSME).

• The maximum assistance under the scheme to a State

level EDI will be restricted to Rs.250 lakh in each case.
This grant would be utilized for development of physical
infrastructure, equipment, faculty training and development
of capability in undertaking studies and research on issues
related to MSME sector. This grant would be over and above
the grant, if any, received by that institution earlier under

MSME SCHEMES 38
 the ATI scheme.

• For the purpose of grant under this category, an EDI

owned and controlled by a State Government / UT would
be selected as recommended by the State Government/
UT. The selected state level EDI will have to enter into a
partnership agreement (or, MOU) with NIMSME to formulate
and implement the approved proposal.

How to apply

Training institutions of the Ministry of MSME and State level

EDIs may send their applications to the Director/Deputy
Secretary (EDI), Ministry of MSME.

MSME SCHEMES 39
 Coir Industry Technology
Upgradation Scheme

Objective

• To provide assistance to the entrepreneurs for procurement

of eligible Plant & Machinery for modernization, upgradation
and/or establishing a new unit.

Key Benefits

• To establish new state of the art coir processing units

• To provide modern infrastructure facilities to the

production units.

• Upper ceiling of Financial assistance will be Rs.2.50 crores.

Scheme applicable for

• Existing and Aspiring Entrepreneurs

Detailed Information

• The scheme aims at giving away assistance to the

entrepreneurs for upgrading and/or procurement of
eligible plant and machinery for modernization and
thereby establishing a new unit that is capable of making
an application for the larger investment in the coir sector.
The financial assistance provided under this scheme will
be set at 25% of the total cost of admissible items of ‘plant
and machinery’ that are procured by the Coir units. All coir
production or processing units that are registered with the
‘Coir Board’ under ‘Coir Industry’ (Registration) Rules 2008
and are having ‘Udyog Aadhar’ are eligible to apply for
the financial assistance available under this scheme for
modernization.

MSME SCHEMES 40
 How to apply

• Apply on http://coirboard.gov.in/

• The applicant/beneficiary unit seeking assistance under

this component shall file applications online with all
relevant details /documents prescribed.

MSME SCHEMES 41
 Skill Upgradation and Mahila
Coir Yojana

Objective

• Impart training in processing of coir and value addition

to potential workers, coir artisans/entrepreneurs through
training centres of Coir Board.

• Provide self-employment opportunities to rural women

artisans in regions processing coconut husk.

Key Benefits

• Training to personnel in the cadres of supervisors/

instructors/ artisans in coir industry.

• EDPs/Workshops/Seminars on development of coir

industry.

Scheme applicable for

• Existing and Aspiring Entrepreneurs.

Detailed Information

• Any individual can avail of the technologies available with

Coir Board by paying a nominal fee including training /
incubation /handholding support/assistance for setting up
new units from R & D Institutes of the Board.

MSME SCHEMES 42
 How to apply

• Apply on http://coirboard.gov.in/

• The officer-in-charge of the Regional Extension Centre

will handle selection of trainees for training programmes
conducted at the Regional Extension Centres. Trade
Associations, Unit Owners, NGOs, Co-operatives and
Industries Department will sponsor such candidates and
recommend them for training.

MSME SCHEMES 43
 Interest Subsidy Eligibility
Certificate (ISEC)

Objective

• To provide funding for khadi programme undertaken

by khadi institutions by mobilizing funds from banking
institutions for filling the gap between the actual fund
requirements and availability of funds from budgetary
sources.

Key Benefits

• Credit at the concessional rate of interest is made

available as per the requirement of the Khadi Institutions
(KI) to mobilize additional requirements of fund from the
Financial Institutions / Banks.

• The KI is required to pay only 4% interest rate. The difference

between the actual Interest charged by the Bank and 4% is
borne by the KVIC as “Interest Subsidy”

Scheme applicable for

• All Khadi Institutions registered with the KVIC or State Khadi

and Village Industries Boards (KVIBs) can avail of financing.

Detailed Information

• To extend the financial assistance to the needy eligible

Khadi institutions for development of Khadi and Polyvastra
Programme.

• To ensure adequate working fund to Khadi Institutions.

• To ensure liquidity to Khadi Institutions by taping banking

resource.

MSME SCHEMES 44
 How to apply

• Apply on http://www.kviconline.gov.in/kieportal/jsp/index.
jsp

MSME SCHEMES 45
 Work-Shed Scheme for
Khadi Artisans

Objective

• To facilitate and empower khadi spinners and weavers to

chart out a sustainable path for growth, income generation
and better work environment.

Key Benefits

• To provide better ambience by providing a better

workplace to artisans to enable them to carry out their
spinning and weaving work efficiently.

• To provide more storing and working space for housing

slivers, raw material, implements etc.

• To help in improving the efficiency and thereby the

production, productivity of spinners, weavers and also to
increase their earnings.

Scheme applicable for

• Khadi/ polyvastra producing Institutions and Khadi

Artisans

Detailed Information

• Financial assistance is provided to those Khadi artisans

who belong to BPL category. In the states where BPL
card is being issued, they should be covered under
the scheme. Where BPL cards are not being issued at
present, identification of poor artisans may be made in a
transparent and open process. The benefits of the scheme
would be made available to only those artisans who work
for at least 100 days in a year.

MSME SCHEMES 46
 How to apply

• Apply on http://www.kvic.gov.in/kvicres/index.php

MSME SCHEMES 47
 Rojgar Yukt Gaon

Objective

• Scheme aims towards development of Khadi and creation

of sustainable employment opportunities

Key Benefits

• To transform socio-economically distressed villages into

sustainable and self-reliant Khadi based enterprises.

• To give further motivation to Khadi Sector it is proposed to

introduce RYG scheme with enterprise-led business model
for strengthening Khadi Institutions (KIs).

Scheme applicable for

• New Entrepreneur or Corporate entity with partnership

with KIs

Detailed Information

• Create an additional 12,500 direct employment in 50

villages;

• Develop a sustainable model of Khadi-based business

enterprise in the villages with a tripartite collaborative
model of entities from the Government, business and the
village community to produce quality goods;

• Facilitate the overall development of the selected villages

in terms of infrastructure and amenities;

• Develop skills where they don’t exist, provide opportunities

where they are not available, generate income and build

MSME SCHEMES 48
 sustainable self-reliance to communities.

How to apply

• Apply on http://www.kvic.gov.in/kvicres/index.php

MSME SCHEMES 49
 Mahatma Gandhi Institute for Rural
Industrialization (MGIRI)

Objective

• To support, upgrade and accelerate the process of

Rural Industrialization in the country to move towards
the Gandhian vision of sustainable village economy self-
sufficient in employment and amenities

Key Benefits

• Science and technology Intervention & Innovations for

Rural Industries

• Networking and National/ International Collaboration on

R&D and Technology Transfer related to KVI Sector

• Skill/ Entrepreneurship Development Training for Enterprise

development in KVI sector

Scheme applicable for

• Existing and Aspiring Entrepreneurs

Detailed Information

• Any individual entrepreneur can get help in technology up

gradation, product quality improvement, DPR preparation
and product testing in KVI sector and on-line design
support for garment sector.

• Any individual entrepreneur can get Skill/Entrepreneurship

Development Training to set-up enterprise in KVI sector

• Any individual entrepreneur can avail exiting portal

like www.ruralhaat.com and www. Udyamisahayak.com
evolved by MGIRI for obtaining information on machinery
and equipment availability and product marketing support

MSME SCHEMES 50
 for village industries.

How to apply

• Apply on http://www.mgiri.org/

MSME SCHEMES 51
 Pottery Activity under
Gramodyog Vikas Yojana (GVY) scheme

Objective

• To increase the production, technical knowhow of pottery

artisans and to reduce cost of production

• To enhance the income of pottery artisans by providing

skill development training and modern and automated
equipment

• To provide skill-development training to SHGs of pottery-

artisans on focused products like garden pots, khullad,
decorator products etc.

• To encourage the successful potter to set up his own unit

under PMEGP scheme

• To develop necessary market linkages by tying up with

exports and large buying houses.

• To innovate various new products and raw materials to

make international scale pottery

Type of assistance

• Wheel Pottery Training Program for traditional pottery

artisans.

• Press Pottery training program for pottery as well as non-

pottery artisans.

• Jigger-Jolly training program for pottery as well as non-

pottery artisans.

• Trainer’s training program for skilled traditional pottery

artisans who want to work as master trainers.

• Assistance by providing pottery wheel, Clay Blunger,

Granulator etc.

MSME SCHEMES 52
 Who can apply

• The artisans between 18 years and up to 55 years of age.

• Preference to be given to the people trained in the related

activity, people pursuing the same activity earlier, based
on their education, profile & minimum of 50% to SCs / STs /
Women candidates / BPL category

• Non-pottery artisan who is interested to start new industry

can be selected for training of press pottery and jigger-jolly
etc.

How to apply

•By responding to the advertisements to be given by the

State /Divisional Directors of KVIC locally through print and
electronic media by inviting applications from prospective
beneficiaries/ SHGs to receive training/ machines etc.

Whom to contact

• State Director, Khadi and Village Industries Commission.

Address is available at http://www.kviconline.gov.in

MSME SCHEMES 53
 Beekeeping Activity under
Gramodyog Vikas Yojana (GVY) Scheme

Objective

• To adopt scientific bee management practices

• To utilize available natural resources in beekeeping

• To create sustainable employments for the beekeepers /

farmers

• To provide supplementary income for the beekeepers /

farmers

• To create awareness about Honey and other Hive Products

and benefits of beekeeping in cross pollination

Type of assistance

• 5 days beekeeping training is provided to the beneficiary

through various training centers / State Beekeeping
Extension Centers / Masters’ Trainer as per prescribed
syllabus.

• Assistance with Bee boxes, Tool kits etc.

Who can apply

• Persons in the age group between 18 years to 55 years

• One person from one family will be eligible for 10 bee boxes,
with bee colonies and tools kit (Bee veil, smoker, Knife and
hive tool)

• Persons already trained in beekeeping by KVIC / KVIB /

NABARD / KVK (s) / Agriculture - Horticulture Boards / Eligible
Beekeeping NGO (s), etc. eligible to get the support of bee
boxes with bee colonies and tool kit.

• Persons who have availed benefits from other Govt.

Schemes for the same / similar purpose will not be eligible;
the beneficiary shall give declaration to this effect.

MSME SCHEMES 54
 How to apply

• By responding to the advertisements to be given by the

State / Divisional Directors of KVIC locally through print &
electronic media inviting applications along with project
proposals from prospective beneficiaries / SHGs etc.

Whom to contact

• State Director, Khadi and Village Industries Commission.

Address is available at http://www.kviconline.gov.in

MSME SCHEMES 55
 Agarbatti Making Project under
Gramodyog Vikas Yojana (GVY) Scheme

Objective

• To revive Agarbatti industry in the country and increase

indigenous production of Agarbatti to reduce imports

• To impart training to the artisans working in the Agarbatti

sector and assist them with Agarbatti manufacturing
machines, raw material for manufacturing Agarbatti. etc.

• To create sustainable employment for the traditional

Artisans and increase their wages

• To develop backward and forward linkages and hand

holding support to the artisans, SHGs etc.

Type of assistance

• 10 days’ Agarbatti skill upgradation free training (20

candidates per batch) by experts in Agarbatti industry.

• Assistance with Agarbatti manufacturing machines, raw

material for manufacturing Agarbatti.

Who can apply

• Artisans in the age group of 18 years to 55 years having

Aadhar Card / Voters’ ID with photographs and Ration
Cards, etc.

• One person from one family for pedal operated and two
persons from one family for groups activity (SHGs) for
automatic Agarbatti machine

• For SHGs or Groups, all the members will be trained.

• Persons already trained in Agarbatti making by KVIC / KVIB

/ NABARD / KVK (s) / Training centers recognized by State or
Central Govt. or Bank / Eligible NGO (s), etc.

• Preference to be given to the artisans working with KVI

MSME SCHEMES 56
 institutions for production of Agarbatti.

• Persons who have availed benefits from other Govt.

Schemes for the same / similar purpose will not be eligible;
the beneficiary to give declaration to this effect.

How to apply

By responding to the advertisements to be given by the

State /Divisional Directors of KVIC locally through print and
electronic media by inviting applications from prospective
beneficiaries/ SHGs to receive training/ machines etc.

Whom to contact

• State Director, Khadi and Village Industries Commission.

Address is available at http://www.kviconline.gov.in

MSME SCHEMES 57
 Tool Rooms and Technical Institutions - A Component
of Infrastructure Development & Capacity Building
scheme

Objective

Tool Room & Technical Institutions are concentrated on an

integrated Development of the relevant sector of industries
to help MSME. Total 18 MSME Tool Rooms & Technical
institutions established PAN India serving in the relevant
sector like General Engineering, foundry & forging ,
electronics, fragrance, glass, sports good and footwear etc.

Key Benefit

• To improve access of MSMEs to tooling facilities for

enhancement of their efficiency and providing industry
ready manpower by conducting training programme.

•  Process & Product development in relevant sector.

•  Consultancy and job works in relevant sector.

Who can apply

• Industrial Units (focusing on MSME sector)

• The intake eligibility for the training programmes from

school dropout to M. tech level.

Detailed Information

• 18 Tool Room & Technical Institutions (TRs &TIs) under

O/o DC (MSME), Ministry of MSME  are concentrating on
an integrated development of the related segments
of industries by way of providing quality tools, trained
personnel and consultancy in tooling and related areas,
specific product groups like Foundry & Forging, Electronics,
Electrical , Electronics, Fragrance & Flavour, Glass, Sport
Goods, and footwear etc. The Ministry has been investing
periodically to upgrade the TRs & TIs by introducing new

MSME SCHEMES 58
 technologies such as 3D Printing, Glass Machining, CAD/
CAM, CNC machining for tooling, vacuum heat treatment,
Robotics and Process Automation etc.

• TRs & TIs are conducting various training Programme

includes  NSQF Compliance Courses, AICTE/NCVT/SCVT
approved courses and variety of training courses as
per needs of industry to provide them industry ready
manpower & create Entrepreneurship. TRs & TIs have
also developed special training programmes to meet the
requirements at international level. Technology Centres
are conducting training programmes for international
participants sponsored under various agreements like
Technical Co-operation Scheme of Colombo (TCS), Special
Commonwealth African Assistant Programme (SCAAP),
Indian Technical and Economic Co-operation (ITEC), Aid to
Sri Lanka etc

   

• In addition, these institutes provide technical services

such as design of parts and components, materials testing,
heat treatment, quality control, and technical consultancy
related to the product & process improvement. TRs
& TIs apart from extending design, development &
manufacturing support to MSMEs for complex tools, parts
and components (many that serve as import substitutes)
have also supported the strategic sectors such as
aerospace, defence, atomic energy etc. of the country for
their R&D requirements.  

• All the TRs & TIs adhere to the principles of Total Quality
Management (TQM). They are ISO 9001-2000 certified
institutions and a few of them are ISO-14000, OHSAS-18000,
ISO-29990 and ISO-50001 certified. Central Tool Room &
Training Centre, Bhubaneswar is also AS-9100 certified for
Aero-space Component Supply.

How to apply

Online application can be filled at http://dcmsme.gov.in/

CLCS_TUS_Scheme/Tool_Room_Tech_Institutions/Scheme_
Guidelines.aspx or different concerned Tool Room & Technical
institutions website

MSME SCHEMES 59
 Important
Contact
Numbers

MSME SCHEMES 60
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 MINISTRY OF MICRO, SMALL & MEDIUM ENTERPRISES
GOVERNMENT OF INDIA

MSME SCHEMES 68