Micro, Small & Medium Enterprises (MSMEs) contribute enormously to the economic and social evolution of the country by promoting entrepreneurship and generating employment opportunities. The Union Budget 2022-23 highlights the MSME sector, a vital sector that makes up for about 45 per cent of the country’s total manufacturing output, 40 per cent of exports, and almost 30 per cent of the national GDP.

BUDGET COVERS FOLLOWING POINTS REGARDING MSME

Udyam, e-Shram, National Career Service (NCS) and Aatamanirbhar Skilled Employee Employer Mapping (ASEEM) portals will be interlinked, and their spectrum will be broadened.

 They will now serve as portals with live, organic databases, delivering G2C, B2C, and B2B services.

 These services will relate to credit facilitation, skilling, and recruitment to formalise the economy and improve entrepreneurial opportunities

Emergency Credit Line Guarantee Scheme (ECLGS) has delivered much required additional credit to more than 130 lakh MSMEs.

 This has allowed them to mitigate the unfavourable influence of the pandemic. The hospitality and corresponding services, especially those by Micro and Small Enterprises (MSEs), are yet to regain their pre-pandemic business level.

Regarding these factors, the ECLGS will be extended up to March 2023, and INR 50,000 crores will expand its guarantee cover to a total of INR 5 lakh crore, with the additional amount reserved exclusively for hospitality-related enterprise

Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme will be revamped with funds infusion.

 This will stimulate additional credit of INR 2 lakh crore for MSEs and boost employment opportunities.

Raising and Accelerating MSME Performance (RAMP) programme with an outlay of INR 6,000 crore over five years will be rolled out.

This will enable the MSME sector to become more resilient, competitive and efficient.

Objective

The main objective of Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) the fund shall be to facilitate the States in mobilising the resources for expanding coverage of Micro Irrigation by taking up special and innovative projects and also for incentivising micro irrigation beyond the provisions available under Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)-PDMC to encourage farmers to install micro irrigation systems

Key highlights

• Outlay of Rs. 93,068 crore, including Rs.37,454 crore central assistance to States

• Benefit to about 22 lakh farmers, including 2.5 lakh SC and 2 lakh ST farmers90% grant to two National Projects- Renukaji (Himachal Pradesh) andLakhwar (Uttarakhand) -critical for water supply to Delhi and also to other participating States (Himachal Pradesh, Uttarakhand, UP, Haryana and Rajasthan) and for rejuvenation of river Yamuna
• Additional irrigation potential of 13.88 lakh hectare under Accelerated Irrigation Benefit Programme (AIBP)New projects included under AIBP Focused completion of 60 ongoing projects30.23 lakh hectare of command area development works

• Under ‘Har Khet Ko Pani’, 4.5 lakh hectare irrigation through surface minor irrigation and rejuvenation of water bodies, and 1.52 lakh hectare ground water irrigation in suitable blocks
• Completion of watershed projects covering 49.5 lakh hectare rainfed/degraded lands to bring additional 2.5 lakh hectar
• Central funding of 90% of water component for two national projects, namely Renukaji Dam Project (Himachal Pradesh) and Lakhwar Multipurpose Project (Uttarakhand) has been provisioned.
• The two projects would provide beginning of storage in Yamuna basin benefitting six states of upper Yamuna basin, augmenting water supply to Delhi as well Himachal Pradesh, Uttarakhand, UP, Haryana, and Rajasthan and a major step towards rejuvenation of Yamuna.

Har Khet Ko Pani (HKKP) aims for enhancement of physical access on the farm and expansion of cultivable area under assured irrigation.

Under HKKP, surface minor irrigation and repair-renovation-restoration of water bodies component of PMKSY is targeted to provide additional 4.5 lakh hectare irrigation.

 In view of importance of rejuvenation of water bodies, the Cabinet has approved a paradigm shift in funding of their rejuvenation in both urban and rural areas, with significant expansion of their inclusion criteria, and enhancement of central assistance from 25% to 60% in general area.

Further, Ground Water component of HKKP, approved provisionally for 2021-22, targets creation of irrigation potential of 1.52 lakh hectare.

Watershed Development component focuses on development of rainfed areas towards soil and water conservation, regeneration of ground water, arresting runoff and promoting extension activities related to water harvesting and management.

The approved Watershed Development component of Department of Land Resources envisages completion of sanctioned projects covering 49.5 lakh hectare rainfed/ degraded lands to bring additional 2.5 lakh hectare under protective irrigation, during 2021-26.

A specific provision for development of springsheds has been included in the program.

The Union Budget 2022 seeks to complement macro-economic level growth with a focus on micro-economic level all inclusive welfare. The Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman tabled the Union Budget 2022-23 in Parliament today.

The key highlights of the budget are as follows:

PART A

• India’s economic growth estimated at 9.2% to be the highest among all large economies.
• 60 lakh new jobs to be created under the productivity linked incentive scheme in 14 sectors.
• PLI Schemes have the potential to create an additional production of Rs 30 lakh crore.
• Entering Amrit Kaal, the 25 year long lead up to India @100, the budget provides impetus for growth along four priorities:
• PM GatiShakti
• Inclusive Development
• Productivity Enhancement & Investment, Sunrise opportunities, Energy Transition,     and Climate Action.
• Financing of investments

PM GatiShakti

• The seven engines that drive PM GatiShakti are Roads, Railways, Airports, Ports, Mass Transport, Waterways and Logistics Infrastructure.

PM GatiShkati National Master Plan

• The scope of PM GatiShakti National Master Plan will encompass the seven engines for economic transformation, seamless multimodal connectivity and logistics efficiency.
• The projects pertaining to these 7 engines in the National Infrastructure Pipeline will be aligned with PM GatiShakti framework.

Road Transport

• National Highways Network to be expanded by 25000 Km in 2022-23.
• Rs 20000 Crore to be mobilized for National Highways Network expansion.

Multimodal Logistics Parks

• Contracts to be awarded through PPP mode in 2022-23 for implementation of Multimodal Logistics Parks at four locations.

Railways

• One Station One Product concept to help local businesses & supply chains.
• 2000 Km of railway network to be brought under Kavach, the indigenous world class technology and capacity augmentation in 2022-23.
• 400 new generation Vande Bharat Trains to be manufactured during the next three years.
• 100 PM GatiShakti Cargo terminals for multimodal logistics to be developed during the next three years.

Parvatmala

• National Ropeways Development Program, Parvatmala to be taken up on PPP mode.
• Contracts to be awarded in 2022-23 for 8 ropeway projects of 60 Km length.

Inclusive Development

Agriculture

• Rs. 2.37 lakh crore direct payment to 1.63 crore farmers for procurement of wheat and paddy.
• Chemical free Natural farming to be promoted throughout the county. Initial focus is on farmer’s lands in 5 Km wide corridors along river Ganga.
• NABARD to facilitate fund with blended capital to finance startups for agriculture & rural enterprise.
• ‘Kisan Drones’ for crop assessment, digitization of land records, spraying of insecticides and nutrients.

Ken Betwa project

• 1400 crore outlay for implementation of the Ken – Betwa link project.
• 9.08 lakh hectares of farmers’ lands to receive irrigation benefits by Ken-Betwa link project.

MSME

• Udyam, e-shram, NCS and ASEEM portals to be interlinked.
• 130 lakh MSMEs provided additional credit under Emergency Credit Linked Guarantee Scheme (ECLGS)
• ECLGS to be extended up to March 2023.
• Guarantee cover under ECLGS to be expanded by Rs 50000 Crore to total cover of Rs 5 Lakh Crore.
• Rs 2 lakh Crore additional credit for Micro and Small Enterprises to be facilitated under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE).
• Raising and Accelerating MSME performance (RAMP) programme with outlay of Rs 6000 Crore to be rolled out.

Skill Development

• Digital Ecosystem for Skilling and Livelihood (DESH-Stack e-portal) will be launched to empower citizens to skill, reskill or upskill through on-line training.

· Startups will be promoted to facilitate ‘Drone Shakti’ and for Drone-As-A-Service (DrAAS).

Education

• ‘One class-One TV channel’ programme of PM eVIDYA to be expanded to 200 TV channels.

· Virtual labs and skilling e-labs to be set up to promote critical thinking skills and simulated learning environment.

• High-quality e-content will be developed for delivery through Digital Teachers.

• · Digital University for world-class quality universal education with personalised learning experience to be established.

Health

• An open platform for National Digital Health Ecosystem to be rolled out.

• ·National Tele Mental Health Programme’ for quality mental health counselling and care services to be launched.

• A network of 23 tele-mental health centres of excellence will be set up, with NIMHANS being the nodal centre and International Institute of Information Technology-Bangalore (IIITB) providing technology support.

Saksham Anganwadi

• Integrated benefits to women and children through Mission Shakti, Mission Vatsalya, Saksham Anganwadi and Poshan 2.0.
• Two lakh anganwadis to be upgraded to Saksham Anganwadis.

Har Ghar, Nal Se Jal

• Rs. 60,000 crore allocated to cover 3.8 crore households in 2022-23 under Har Ghar, Nal se Jal.

Housing for All

• Rs. 48,000 crore allocated for completion of 80 lakh houses in 2022-23 under PM Awas Yojana.

Prime Minister’s Development Initiative for North-East Region (PM-DevINE)

•  New scheme PM-DevINE launched to fund infrastructure and social development projects in the North-East.
• An initial allocation of Rs. 1,500 crore made to enable livelihood activities for youth and women under the scheme.

Vibrant Villages Programme

• Vibrant Villages Programme for development of Border villages with sparse population, limited connectivity and infrastructure on the northern border.

Banking

• 100 per cent of 1.5 lakh post offices to come on the core banking system.
• Scheduled Commercial Banks to set up 75 Digital Banking Units (DBUs) in 75 districts.

e-Passport

• e-Passports with embedded chip and futuristic technology to be rolled out.

Urban Planning

• Modernization of building byelaws, Town Planning Schemes (TPS), and Transit Oriented Development (TOD) will be implemented.
• Battery swapping policy to be brought out for setting up charging stations at scale in urban areas.

Land Records Management

• Unique Land Parcel Identification Number for IT-based management of land records.

Accelerated Corporate Exit

• Centre for Processing Accelerated Corporate Exit (C-PACE) to be established for speedy winding-up of companies.

AVGC Promotion Task Force

• An animation, visual effects, gaming, and comic (AVGC) promotion task force to be set-up to realize the potential of this sector.

Telecom Sector

• Scheme for design-led manufacturing to be launched to build a strong ecosystem for 5G as part of the Production Linked Incentive Scheme.

Export Promotion

• Special Economic Zones Act to be replaced with a new legislation to enable States to become partners in ‘Development of Enterprise and Service Hubs’.

AtmaNirbharta in Defence:

• 68% of capital procurement budget earmarked for domestic industry in 2022-23, up from 58% in 2021-22.

· Defence R&D to be opened up for industry, startups and academia with 25% of defence R&D budget earmarked.

· Independent nodal umbrella body to be set up for meeting testing and certification requirements.

Sunrise Opportunities

• Government contribution to be provided for R&D in Sunrise Opportunities like Artificial Intelligence, Geospatial Systems and Drones, Semiconductor and its eco-system, Space Economy, Genomics and Pharmaceuticals, Green Energy, and Clean Mobility Systems.

Energy Transition and Climate Action:

• Additional allocation of Rs. 19,500 crore for Production Linked Incentive for manufacture of high efficiency solar modules to meet the goal of 280 GW of installed solar power by 2030.

· Five to seven per cent biomass pellets to be co-fired in thermal power plants:

•  

• CO₂ savings of 38 MMT annually,
• Extra income to farmers and job opportunities to locals,
• Help avoid stubble burning in agriculture fields.

· Four pilot projects to be set up for coal gasification and conversion of coal into chemicals for the industry

· Financial support to farmers belonging to Scheduled Castes and Scheduled Tribes, who want to take up agro-forestry.

Public Capital Investment:

• Public investment to continue to pump-prime private investment and demand in 2022-23.
• Outlay for capital expenditure stepped up sharply by 35.4% to Rs. 7.50 lakh crore in 2022-23 from Rs. 5.54 lakh crore in the current year.
• Outlay in 2022-23 to be 2.9% of GDP.
• ‘Effective Capital Expenditure’ of Central Government estimated at Rs. 10.68 lakh crore in 2022-23, which is about 4.1% of GDP.

GIFT-IFSC

• World-class foreign universities and institutions to be allowed in the GIFT City.
• An International Arbitration Centre to be set up for timely settlement of disputes under international jurisprudence.

Mobilising Resources

• Data Centres and Energy Storage Systems to be given infrastructure status.

· Venture Capital and Private Equity invested more than Rs. 5.5 lakh crore last year facilitating one of the largest start-up and growth ecosystem. Measures to be taken to help scale up this investment.

· Blended funds to be promoted for sunrise sectors.

· Sovereign Green Bonds to be issued for mobilizing resources for green infrastructure.

Digital Rupee

• Introduction of Digital Rupee by the Reserve Bank of India starting 2022-23.

Providing Greater Fiscal Space to States

• Enhanced outlay for ‘Scheme for Financial Assistance to States for Capital Investment’:
  • From Rs. 10,000 crore in Budget Estimates to Rs. 15,000 crore in Revised Estimates for current year

• Allocation of  Rs. 1 lakh crore in 2022-23 to assist the states in catalysing overall investments in the economy: fifty-year interest free loans, over and above normal borrowings
• In 2022-23, States will be allowed a fiscal deficit of 4% of GSDP, of which 0.5% will be tied to power sector reforms

Fiscal Management

• Budget Estimates 2021-22: Rs. 34.83 lakh crore
• Revised Estimates 2021-22: Rs. 37.70 lakh crore
• Total expenditure in 2022-23 estimated at Rs. 39.45 lakh crore
•  Total receipts other than borrowings in 2022-23 estimated at Rs. 22.84 lakh crore
• Fiscal deficit in current year: 6.9% of GDP (against 6.8% in Budget Estimates
• Fiscal deficit in 2022-23 estimated at 6.4% of GDP

PART B

DIRECT TAXES

To take forward the policy of stable and predictable tax regime:

• Vision to establish a trustworthy tax regime.
• To further simplify tax system and reduce litigation.

Introducing new ‘Updated return’

• Provision to file an Updated Return on payment of additional tax.
• Will enable the assessee to declare income missed out earlier.
• Can be filed within two years from the end of the relevant assessment year.

Cooperative societies

• Alternate Minimum Tax paid by cooperatives brought down from 18.5 per cent to 15 per cent.

• To provide a level playing field between cooperative societies and companies.
• Surcharge on cooperative societies reduced from 12 per cent to 7 per cent for those having total income of more than Rs 1 crore and up to Rs 10 crores.

Tax relief to persons with disability

• Payment of annuity and lump sum amount from insurance scheme to be allowed to differently abled dependent during the lifetime of parents/guardians, i.e., on parents/ guardian attaining the age of 60 years.

Parity in National Pension Scheme Contribution

• Tax deduction limit increased from 10 per cent to 14 per cent on employer’s contribution to the NPS account of State Government employees.
• Brings them at par with central government employees.
• Would help in enhancing social security benefits.

Incentives for Start-ups

• Period of incorporation extended by one year, up to 31.03.2023 for eligible start-ups to avail tax benefit.
• Previously the period of incorporation valid up to 31.03.2022.

Incentives under concessional tax regime

• Last date for commencement of manufacturing or production under section 115BAB extended by one year i.e. from 31^st March, 2023 to 31^st March, 2024.

Scheme for taxation of virtual digital assets

• Specific tax regime for virtual digital assets introduced.
• Any income from transfer of any virtual digital asset to be taxed at the rate of 30 per cent.
• No deduction in respect of any expenditure or allowance to be allowed while computing such income except cost of acquisition.
• Loss from transfer of virtual digital asset cannot be set off against any other income.
• To capture the transaction details, TDS to be provided on payment made in relation to transfer of virtual digital asset at the rate of 1 per cent of such consideration above a monetary threshold.
• Gift of virtual digital asset also to be taxed in the hands of the recipient.

Litigation Management

• In cases where question of law is identical to the one pending in High Court or Supreme Court, the filing of appeal by the department shall be deferred till such question of law is decided by the court.
• To greatly help in reducing repeated litigation between taxpayers and the department.

Tax incentives to IFSC

• Subject to specified conditions, the following to be exempt from tax
  • Income of a non-resident from offshore derivative instruments.
  • Income from over the counter derivatives issued by an offshore banking unit.
  • Income from royalty and interest on account of lease of ship.
  • Income received from portfolio management services in IFSC.

Rationalization of Surcharge

• Surcharge on AOPs (consortium formed to execute a contract) capped at 15 per cent.
• Done to reduce the disparity in surcharge between individual companies and AOPs.
• Surcharge on long term capital gains arising on transfer of any type of assets capped at 15 per cent.
• To give a boost to the start up community.

Health and Education Cess

• Any surcharge or cess on income and profits not allowable as business expenditure.

Deterrence against tax-evasion

• No set off, of any loss to be allowed against undisclosed income detected during search and survey operations.

Rationalizing TDS Provisions

• Benefits passed on to agents as business promotion strategy taxable in hands of agents.
• Tax deduction provided to person giving benefits, if the aggregate value of such benefits exceeds Rs 20,000 during the financial year.

INDIRECT TAXES

Remarkable progress in GST 

• GST revenues are buoyant despite the pandemic – Taxpayers deserve applause for this growth.

Special Economic Zones

• Customs Administration of SEZs to be fully IT driven and function on the Customs National Portal – shall be implemented by 30^th September 2022.

Customs Reforms and duty rate changes

• Faceless Customs has been fully established. During Covid-19 pandemic, Customs formations have done exceptional frontline work against all odds displaying agility and purpose.

Project imports and capital goods

• Gradually phasing out of the concessional rates in capital goods and project imports; and applying a moderate tariff of 7.5 percent   – conducive to the growth of domestic sector and ‘Make in India’.
• Certain exemptions for advanced machineries that are not manufactured within the country shall continue.
• A few exemptions introduced on inputs, like specialised castings, ball screw and linear motion guide – to encourage domestic manufacturing of capital goods.

Review of customs exemptions and tariff simplification

• More than 350 exemption entries proposed to be gradually phased out, like exemption on certain agricultural produce, chemicals, fabrics, medical devices, & drugs and medicines for which sufficient domestic capacity exists.

• Simplifying the Customs rate and tariff structure particularly for sectors like chemicals, textiles and metals and minimise disputes; Removal of exemption on items which are or can be manufactured in India and providing concessional duties on raw material that go into manufacturing of intermediate products – in line with the objective of ‘Make in India’ and ‘Atmanirbhar Bharat’.

Sector specific proposals

Electronics

• Customs duty rates to be calibrated to provide a graded rate structure – to facilitate domestic manufacturing of wearable devices, hearable devices and electronic smart meters.
•  Duty concessions to parts of transformer of mobile phone chargers and camera lens of mobile camera module and certain other items – To enable domestic manufacturing of high growth electronic items.

Gems and Jewellery

• Customs duty on cut and polished diamonds and gemstones being reduced to 5 per cent; Nil customs duty to simply sawn diamond – To give a boost to the Gems and Jewellery sector

.

• A simplified regulatory framework to be implemented by June this year – To facilitate export of jewellery through e-commerce.

• Customs duty of at least Rs 400 per Kg to be paid on imitation jewellery import – To disincentivise import of undervalued imitation jewellery.

Chemicals

• Customs duty on certain critical chemicals namely methanol, acetic acid and heavy feed stocks for petroleum refining being reduced; Duty is being raised on sodium cyanide for which adequate domestic capacity exists – This will help in enhancing domestic value addition.

MSME

• Customs duty on umbrellas being raised to 20 per cent. Exemption to parts of umbrellas being withdrawn.
• Exemption being rationalised on implements and tools for agri-sector which are manufactured in India
• Customs duty exemption given to steel scrap last year extended for another year to provide relief to MSME secondary steel producers
• Certain Anti- dumping and CVD on stainless steel and coated steel flat products, bars of alloy steel and high-speed steel are being revoked – to tackle prevailing high prices of metal in larger public interest.

Exports

• To incentivise exports, exemptions being provided on items such as embellishment, trimming, fasteners, buttons, zipper, lining material, specified leather, furniture fittings and packaging boxes.

• Duty being reduced on certain inputs required for shrimp aquaculture – to promote its exports.

Tariff measure to encourage blending of fuel

• Unblended fuel to attract an additional differential excise duty of Rs 2/ litre from the 1^st of October 2022 – to encourage blending of fuel.

Objectve

The main objective of Scheme is to create an integrated workspace and linkages_ based for entrepreneurial ecosystem for startup  that is operationally and viable and increase the chance of success ,and decrease the time and cost requires to start and grow  a new business. subsidy for Incubation Centers Schemes To Setup Incubation Centers For Apparel Manufacturing -msme incubation scheme

The  outcomes include

Promote entrepreneurship in apparel manufacturing.

Create additional manufacturing capacity.

Generate additional employment opportunities.

The target of the scheme is to establish 3 incubation centres in the period of 12^th  Plan of Scheme.-msme incubation scheme

The Project

The Project is to establish an incubation facility in the textile parks. Each incubation centre shall have a maximum of 3 incubaees.

1- Incubates:

Incubates shall be identified and selected from the following category of individuals:

Degree/ Diploma holders of any discipline related to textile, apparel, fashion design etc.

 First generation entrepreneurs Design preneurs

Incubation Period:

The period for each Incubate shall be three years. It is envisaged

that during this period the entrepreneur shall have acquired the capability and skills to

independently operate his own venture.

Project Component

The eligible component of the Project are

Component A: Infrastructure Support

1- PLUG AND PLAY FACTORY BUILDING – READY TO USE PLUG AND PLAY FACTORY BUILDING WITH A TOTAL AREA ARE NOT EXCEEDING 45,000 sq ft @15,000 sq ft per incubate. which can either be spread over three levels (G+2) or over a single floor. This shall comprise of operations area, packing, office, store, workers amenities, display, etc.

 2- PLANT AND MACHNERY – : comprising of minimum 100 stitching machines along with ancillary machinery per incubate.

Component B: Capacity Building Support and Linkages

1- Training support for 200 workers per Incubatee. The training shall be carried

out for 3 months in accordance with the norms of the Integrated Skills

Development Scheme (ISDS) of the Ministry of Textiles

2- Training on Entrepreneurship Development to the incubatee for 1 month

3- Training on Product Design and Development services to the incubate

4- Support to Market Linkages though exposure visits by participation/visit 3

domestic exhibitions (atleast 1 per year) and a visit to an international fair.

The assistance provided by Ministry to support the capacity building and market linkages per Incubatee is enumerated below

SR NO.	COMPONENT	DURATION AND FEE	PER INCUBATEE(IN LAKHS)
1	Skill Development for workers	3 month training for 200 workers @ Rs 10,000 per trainee	20 LAKHS
2	Market Linkages for incubatee	3 domestic exhibition and 1 international exhibition	5
3	EDP Programme for incubatee	I month training programme for Incubatee	1
4	Design service Per Incubatee	5 lakhs	5
	TOTAL		31 LAKHS

Grant Assistance and Release of Grant

Component	Grant Assistance
Component I – Infrastructure	100% grant – in – aid will be provided towards infrastructure support not exceeding Rs 4 cr per incubate and Rs. 12 cr per Incubation Centre
Component II Capacity Building Services and Linkages	I00% grant -in-aid towards Capacity Building Services and Linkages @ Rs 3l lacs (maximum) per incubatee

subsidy for Incubation Centers Schemes To Setup Incubation Centers For Apparel Manufacturing

The PM mitra scheme will develop integrated large scale and modern industrial infrastructure facility for total value-chain of the textile industry for example, spinning, weaving, processing, garmenting, textile manufacturing, processing & printing machinery industry. Pm Mega Integrated Textile scheme

PM MITRA Parks will be set up on the basis of proposals received from State Governments having ready availability of contiguous and encumbrance-free land parcel of minimum1000 acres.

Eligibility

SPV will be a legal entity (with 51% equity shareholding of State Government and 49% of Central Government) set up by the State Government for the purpose of implementing the PM MITRA Park Project.

The selection of PM MITRA Park sites will be done in a two stage selection process on Challenge Method.

Stage 1: Selection of Sites offered by State Governments through Challenge Route:

Stage 2 : Development of the Park

Funding & Release of Grant under PM MITRA Park Scheme by GOI

The Scheme has a budget outlay of Rs. 4445 Crore including administrative expenses of Rs 30 crore over 7-year period up to 2027-28.

Development Capital Support (DCS):

The Central Government will provide DCS in the form of Grant in Aid (Capital) to the Park SPV. DCS is a support for creation of Core Infrastructure e.g. Internal Road; Power Distribution Infrastructure; Water and Waste Water treatment and other facilities; Development of Plug & Play Infrastructure for Textiles Designers, Apparel Manufacturers, Accessories Manufacturers; Factory Sites; Incubation Centre etc. DCS can also be used for creating Support Infrastructure e.g. Common Processing Facility, Common Effluent Treatment Plant (CETP), Workers’ Hostel & Housing, (Specially for women Worker), Health Facility, Training & Skill Development, Warehousing, Logistics etc

The DCS will be provided in two Phases:

 Phase I – ₹ 300 Cr for Greenfield Park and ₹100 Cr for Brownfield Park, as per phasing of construction. Concession period will be 25 years till completion of Phase 1

 Phase II – ₹ 200 Cr for Greenfield Park and ₹100 Cr for Brownfield Park

Competitive Incentive Support (CIS):

For incentivizing manufacturing units to get established early in PM MITRA Park, there is a provision of ₹ 300 Cr per park.  Incentive will be provided to manufacturing units up to 3% of the total sales turnover to the unit established in the PM MITRA Park to reduce its cost and offset its disadvantages to a certain extent.

i. The CIS will be Fund Limited and it will be available on a first come first serve basis.

 ii. The incentives will only be available to those manufacturing companies who are not availing benefits of Production Linked Incentive (PLI) for Textile Scheme.

 iii. There will be a cap of ₹10 Crore per annum on incentive and a maximum cap of ₹30 Crore on incentive for one anchor investor company with an investment of ₹300 Crore or above in its unit in PM MITRA Park.

 iv. There will be a cap of ₹5 Crore per annum on incentive and a maximum cap of ₹15 Crore on incentive for one investor company with an investment of ₹100-300 Crore.

 v. There will be a cap of ₹1 Crore per annum on incentive and a maximum cap of ₹3 Crore on incentive for other investor companies and tenant companies, but they must have employment of 100 persons and above.

Pm Mega Integrated Textile scheme

The key objectives of the Solar programme are

a. To promote subsidy for grid connected rooftop solar programme RTS in all consumer segments, viz., residential, institutional, social, Govt., commercial, industrial etc.

b. To bring DISCOMs at forefront as key drivers for rapid deployment of RTS.

c. To create awareness, capacity building, human resource development, etc.

d. To promote sustainable business models

. e. To create additional RTS capacity of 38000 MW in the country by 31.12.2022

out of which a capacity of 4000 MW in residential sector with Central Financial Assistance and 34000 MW in other sectors

(i.e., Social and Government and educational andPSUs, Statutory /Autonomous bodies, and Private Commercial

as well as, Industrial Sectors etc.) by suitably incentivizing DISCOMs f. To promote domestic manufacturing of solar cells and module..

COMPONENTS

Component A: Setting up of 4000 MW of grid connected rooftop solar projects in residential sector with Central Financial Assistance (CFA)

: In most of the States/UTs the residential sector enjoys benefit of subsidized electricity; therefore, beneficiaries of this sector would not be inclined to adopt rooftop solar until some capital CFA mechanism is put in place to reduce the cost of rooftop solar.

Further, considering the fact that lower consumption slab pays lower tariff and vice versa, the CFA for RTS is also required to be restructured.

Component B: Incentives to Electricity Distribution Companies (DISCOMs) based on achievement towards initial 18000 MW of grid connected rooftop solar plants 5.2.1

Since DISCOMs are required to incur additional expenditure for implementation of programme and in terms of additional man-power, creating infrastructure, capacity building, awareness, etc.,

these will be compensated by providing performance linked incentives. The incentives may be provided for each MWp capacity of solar rooftop, added by them in their distribution area over and above 10% of base capacity

installed at the end of previous year. However, such incentives will not be applicable with retrospective effect.

These incentives will be provided to enable DISCOMs to create an enabling ecosystem for expeditious implementation of RTS projects in their area.

S. No	Parameter	Incentive to be Provided
1	For installed capacity achieved above 10 % and up to 15 % over and above of the install ed base capacity* within a financial year	5% of the applicable cost** for capacit y achieved above 10 % of the installed base capacity
2	For installed capacity achieved beyond 15 % over and above of the installed base capa city* within one financial year	5% of the applicable cost** for capacit y achieved above 10 % and up to 15 % of the installed base capacity PLUS 10 % of the applicable cost** for capacity achieved beyond 15 % of the installed base capacity

The incentive mechanism has been illustrated in the following table

Discoms	Installed base capacity (MW)	Achievement under programme (MW)	Percentage Achievement of installed base capacity (%)	Capacity eligible for 5% incentives (MW)	Capacity eligible for 10% incentives (MW)
A	100 MW	10 MW	10%	Nil	Nil
B	100 MW	12 MW	12%	2MW	NIL
C	100 MW	20 MW	20%	5 MW	5 MW
D	100 MW	30 MW	30%	5 MW	15 MW

PLI scheme for Drone

Objective

The objective of this s

PLI scheme for Drone is to incentivise manufacturing of drones and drone components in India so as to make them self-sustaining and globally competitive.

Eligibility

PLI scheme for Drone for all manufacturers of drones in India shall be eligible for this scheme subject to compliance with other requirements specified herein.

All manufacturers of the following drone components shall be eligible, subject to compliance with other requirements specified herein: 6 THE GAZETTE OF INDIA : EXTRAORDINARY

 a) Airframe, propulsion systems (engine and electric), power systems, batteries and associated components, launch and recovery systems;

 b) Inertial Measurement Unit, Inertial Navigation System, flight control module, ground control station and associated components;

 c) Communications systems (radio frequency, transponders, satellite-based etc.);

d) Cameras, sensors, spraying systems and related payload etc.;

e) ‘Detect and Avoid’ system, emergency recovery system, trackers etc. and other components critical for safety and security.

The list of eligible drones and drone components may be modified by the Central Government from time to time.

All manufacturers of drones and drone components whose annual sales turnover is above the following threshold shall be eligible for claiming PLI:

Minimum annual sales turnover for claiming PLI
Indian MSME and startups	Indian Non-MSME
Drone (INR Cr)	Component (INR Cr)	Drone (INR Cr)	Component (INR Cr)
2	0.5	4	1

Computation of the incentive

1. Eligible sales turnover is defined as the total sales turnover achieved in a financial year (net of GST) from the sale of drones and drone components as stated in such manufacturer’s GST returns.
2. Eligible purchase cost is defined as the total cost (net of GST) incurred in a financial year for purchase of drones and drone components as stated in such manufacturer’s GST returns.
3. Eligible value addition in India in a financial year shall be eligible sales turnover minus the eligible purchase cost as defined above.
4. For ample clarity, developers of software for drones and drone components are also eligible for the PLI, subject to the eligibility norms and guidelines of this scheme.
5. The PLI rate applicable to the eligible value addition in India shall be 20% for the entire tenure of the scheme.

Illustrative PLI calculation for a manufacturer (for sample year FY 2021-22)
Claim year	Sales – Net of GST (INR cr)	Purchase – Net of GST (INR cr)	Eligible value addition in India (INR cr)	PLI rate for value addition (%)	Applicable PLI (INR cr)
FY 21-22	100	60	40	20%	8

Ministry of Food Processing Industry (MoFPI) has launched Prime Minister Formalisation of Micro food processing Enterprises (PM FME) scheme under the Aatmanirbhar Bharat Abhiyan with the aim to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector. Seed Capital component

 The scheme to be implemented over a period five years from 2020-21 to 2024-25 with a total outlay of Rupees 10,000 crore. The scheme has a special focus on supporting Groups engaged in Agri-food processing such as Farmer Producer Organizations (FPOs), Self Help Groups (SHGs) and Producers Cooperatives along their entire value chain.

The PMFME scheme support in terms of:

1. Seed capital @ Rs. 40,000/- per SHG member for working capital and purchase of small tools
2.   Food processing entrepreneurs through credit-linked capital subsidy@35% of the eligible project cost with a maximum ceiling of Rs.10 lakh per unit
3.  Credit linked grant of 35% for capital investment to FPOs/ SHGs/ producer cooperatives. iv. Support for marketing & branding to micro units

Eligibility Criteria for Seed Capital for SHGs

1. Only SHG members that are presently engaged in food processing would be eligible for financial support;
2.   The SHG member has to commit to SHG and CBO for utilization of this amount only for working capital and purchase of small tools related to food manufacturing
3.  Before providing the seed capital, SRLM through its CBOs would collect basic details for each of the members viz. Details of the product being processed, annual turnover, Source

Scale of Assistance to SHGs

The loans to SHG members for working capital and procurement of the tools would depend on the annual turnover of their existing enterprises.

 The enterprises could of two categories – those that are seasonal and others that operate throughout the year. The funding support would vary depending on the nature of operations. The following table provides the maximum loans amount and the details of release permissible under the working capital and for purchasing equipment

Type of enterprise	Annual Turnover Rs	Maximum Loan amount for working capital Rs	Maximum Loan for small tools / equipment Rs	Maximum loan amount Rs.
Seasonal enterprise	X	100% of X	40% of X	40,000
Perennial enterprise	X	50% of X	40% of X	40,000

If a seasonal enterprise has a turnover of Rs 20,000, then the maximum permissible loan for meeting the working capital is 100% of 20,000 ie. Rs 20,000. For tools it is 40% of 20,000 ie. Rs 8,000. So, the maximum permissible loan to SHG member is Rs 28,000. If the perennial enterprise has a turnover of Rs 20,000, the maximum permissible loan for meeting the working capital is 50% of 20,000 ie. Rs 10,000. For tools, it 40% of 20,000 ie. Rs 8,000. So, the maximum permissible loan is Rs 18,000.

 Interest Rate for loan to SHGs:

 The PM FME beneficiary can be charged a maximum interest of 6% for the loan. The interest spread to be provided to SHG, VO and CLF would be decided by the SRLM

Branding And Marketing Support Scheme – PMFME

Marketing and branding support would be provided to groups of FPOs/SHGs/ Cooperatives or anSPV of micro food processing enterprises under the scheme. Following the ODOP approach, marketing & branding support would only be provided for such a product at the State or regional level.-Branding And Marketing Support Scheme

Some highlights

• Under the scheme, Incentive is extended for the promotion of only Indian Brands abroad
• Support for Branding is intended for developing market for all Indian food products in brand consumer packs including those covered in the four product segments
• Under the Scheme, the following four Segments of food products are cover:
  • Ready to Eat/ Ready to Cook (RTE/RTC)
    • Fruits and Vegetable Products
    • Marine Products
    • Mozzarella Cheese
• Applicants will extended financial incentives @ 50% of expenditure on Branding & Marketing abroad subject to a maximum grant of 3% of Sales of food products or Rs 50 crore per year, whichever is less. The minimum expenditure for Incentive shall be Rs. 5 crore over a period of five years. In such case, an admissible grant would be Rs 2.5 crore

Eligible items for support under the scheme:

1. Training relating to marketing to fully funded under the scheme;

2. Developing a common brand and packaging including standardization to participate in common packaging;

3. Marketing tie-up with national and regional retail chains and state-level institutions;

4. Quality control to ensure product quality meets the required standards.

Support for marketing and branding requires developing a common brand, common packaging, and product standardization. The appropriate level for common branding and packaging would differ from place to place, case to case, and product to product. Whether it should district, regional, or state level would be decided by the concerned SNA in each case. Therefore, the proposal for support to marketing and branding should prepared by the SNA.

Support for branding and marketing would limited to 50% of the total expenditure. The maximum limit of grant in such cases would be as prescribed. No support would be provided for opening retail outlets under the scheme.

Vertical products at the national level could also be provided support for branding & marketing on the same lines as described above for ODOP focus. Such support for common branding/packaging and marketing would be provided at the national level. Proposal for that support should sent to MoFPI by the states or national level institutions or organizations or partner institutions.

Eligibility criteria:

The proposals should fulfill the following conditions: –

1. The proposal should relate to ODOP
2. The minimum turnover of product to be eligible for assistance should be Rs 5 crore
3. The final product should the one to be sold to the consumer in a retail pack
4. Applicant should be an FPO/SHG/cooperative/ regional – State levels SPV to bring a large number of producers together
5. Product and producers should be scalable to larger levels
6. Management and entrepreneurship capability of promoting entities should established in the proposal.