Government Schemes

Pradhan Mantri Mudra Yojana Govt. Of India

Objective Of The Scheme

Mudra loan is extended for a variety of purposes which provide income generation and employment creation. The loans are extended mainly for :

• Business loan for Vendors, Traders, Shopkeepers and other Service Sector activities
• Working capital loan through MUDRA Cards
• Equipment Finance for Micro Units
• Transport Vehicle loans

Directorate of Industries Government of Maharashtra

Micro & Small Enterprises-Cluster Development Programme (MSE-CDP)

Govt. of India has announced schemes for upgradation of potential industrial clusters. Maharashtra has a rich inherent potential for cluster of traditional as well as advanced enterprises. Directorate of Industries has taken elaborate steps to explore these clusters by effectively implementing the cluster schemes.

Broad features of modifications are as below:

• Maximum project cost for Common Facility Centre (CFC) from ₹ 10 Crore to ₹ 15 Crore, with Government of India contribution of 70%
• Maximum project cost for Infrastructure Development to ₹ 10 Crore, with Government of India contribution of 60%
• For Soft interventions maximum limit of project cost Rs.10.00 lakh. As per the modifications in the guidelines on 27th July, 2016 the Govt. of India will not give any grant for diagnostic study report (DSR) and Soft Interventions. However, if detailed project report is finally approved, sum of Rs.10.00 lakh will be consider as a contribution by the Special Purpose Vehicle (SPV) towards the project
• Enhancement of the cost ceiling for preparation of Detailed Project Report (DPR) for CFC and/or Infrastructure Development to ₹ 5 Lakhs

Directorate of Industries Government of Maharashtra

In pursuance of the Industrial Policy-1977, a programme for setting up District Industries Centres (DICs) was launched by the Government of India, to be operational from 1st May 1978. The programme provided for setting up a DIC in each district of the country, in a phased manned in order to make the district headquarters a focal point for the development of small-scale and cottage industries, to shift the emphasis from cities and state capitals to the district headquarters and to provide under a single root, all services and support needed by small and village entrepreneurs.

Following are the schemes under District Industries Centre (DIC):

• Prime Minister’s Employment Generation Program (PMEGP)
• Seed Money Scheme
• DIC Loan Scheme
• Entrepreneurship Development Training Program
• District Award Schemes

Directorate of Industries Government of Maharashtra

Maharashtra State Industrial-Cluster Development Programme (MSI-CDP)

Govt. of Maharashtra has announced Maharashtra State Industrial Cluster Development Programme (MSICDP) Govt. Resolution dated 25.02.2014 for D & D+, no industry districts Naxalite affected areas.

Benefits under MSICDP

To conduct Soft Intervention (SI) Programme:

Maximum limit of the project cost for SI is ₹ 10.00 lakhs which includes GoM grant@ 90% & Beneficiaries contribution @10%.

To conduct Soft Intervention (SI) Programme:

Maximum Grant in aid from Govt. of Maharashtra for setting up of CFC is limited to ₹ 5.00 Crores or 70% of the approved project cost whichever is lower.

GoM grant will be 80% for clusters with
100% micro units /more than 50% Women owned units.

Support for International Patent Protection In Electronics and Information Technology (SIP-EIT)

Headed by the Department of Electronics and Information Technology (DeitY), the SIP-EIT aims at:

• Providing financial aid to MSMEs and technology startups.
• Formulating international patent filings.
• Revitalizing the ethics of innovation.
• Acknowledging the capabilities of global IP.
• Seizing growth opportunities in ICTE sectors.
• The refunding will be limited to 15lakhs INR or 50% of total expenses in filling out patent applications.

Multiplier Grants Scheme (MGS)

Headed by the Department of Electronics and Information Technology (DeitY), MGS strives at:

• Initiating inter-organisational R&D collaborations between industries and education for better insight.
• Regulating development of products and packages through R&D institutions.
• The government has made very specific announcements for the financial incentives associated with MGS. The individual industry should be limited at 2cr per project for a time period of 2 years. The collective industries should be limited at 4cr per project for a 3 year time period.

Performance and Credit Rating Scheme

Headed by the National Small Industries Corporation, the Performance and Credit Rating Scheme aims at:

• Elucidating on a SWOT analysis of small-scale industries.
• Legitimately formed under the Ministry of MSME along with leading stakeholders to boost business in small-scale industries.
• If the ratings are 50lakhs, 25,000INR will be contributed. For turnover of 200lakhs, 30,000 INR will be contributed and for turnover of 400 lakhs, 40,000 INR will be contributed.

Credit Linked Capital Subsidy For Technology Upgradation (CLCSS)

Govt is clearly aware that technology is the tool that can propel Indian startups and MSMEs to compete with global competitors.

This is the reason for the creation of Credit Linked Capital Subsidy for Technology Upgradation (CLCSS) scheme, wherein Govt provides financial help to MSMEs to upgrade their technology and implement state of the art technological platform for their business.

Under CLCSS, Govt provides 15% subsidy for investment up to Rs 1 crore for upgrading technology for startups and MSMEs in India. More than 7500 products/services are covered under this scheme.

National Clean Energy Fund (NCEF)

Headed by the Indian Renewable Energy Development Agency (IREDA), The NCEF aims at:

• Reviving the existing operations of small hydropower projects and biomass power by bringing down the cost of financing.
• This can be done by introducing refinancing at economic rates of interests.
• The funding is extracted from the NCEF.
• The maximum refinancing amount is set to INP 15cr per project. Refinancing should not exceed 30%of the loan and is cited at 2% interest rate from IREDA to the respective banks and financial institutes.

Modified Special Incentive Package Scheme (M-SIPS)

Headed by the Department of Electronics and Information Technology (DeitY), M-SIPS aims at:

• Spreading awareness about Intellectual Property Rights among various stakeholders in the E&IT sector.
• Supporting IPR workshops and seminars to spread awareness.
• The Indian Government provides for a capital subsidy of 20% for SEZ units and 25% for non-SEZ units. It is centred around electronic manufacturing. Additionally, it provides for reimbursements for capital excise by non-SEZ units.

Pradhan Mantri Mudra Yojana

PM Modi launched Pradhan Mantri Mudra Yojana, wherein Micro Units Development and Refinance Agency Bank or MUDRA Banks provide loans at low rates to micro-finance institutions and non-banking financial institutions, who in turn provide low-interest loans to startups and MSMEs.

Categories of businesses, which can avail loans under MUDRA loan for startups:

• Category 1: Shishu, which is for new businesses. Loans up to Rs 50,000 can be availed
• Category 2: Kishor, which is a mid-aged business. Loans up to Rs 5 lakh can be availed
• Category 3: Tarun, which is an existing, experienced business. Loans up to Rs 10 lakh can be availed.
• Mudra scheme covers MSMEs such as Small Manufacturing Units, Retailers, Wholesalers, Artisans, and more.

Design Clinic For Design Expertise To MSMEs

Design and innovation is critical for any sector, and every startup and MSME should have a design-centric approach to solve the problems of their niche. In order to encourage and inspire small businesses to experiment and try out new designs for their products, the MSME Ministry has created a Design Clinic for inducing design related expertise for startups and MSMEs.

Under this scheme, Govt will provide upto Rs 60,000 aid for attending design seminars and upto Rs 3.75 lakh or 75% of the cost of a seminar, wherein the entrepreneur and/or their team can learn and implement design theories and learn more about them. Via this program, entrepreneurs can know about the latest trends and practices related to designs, interact and network with other designers, entrepreneurs, and learn in-depth about design mentality and theories.