Scheme 1. Prime Ministers Employment Generation Programme, PMEGP
Sub scheme 1.1. Prime Minister’s Employment Generation Programme (PMEGP)
To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises MSME consultancy
Levels of funding under PMEGP
For setting up of new micro enterprise
| Categories of beneficiaries under PMEGP (for setting up of new enterprises) | Beneficiary’s contribution (of project cost) | Rate of Subsidy (of project cost) | Rate of Subsidy (of project cost) |
| Area (location of project/unit) | Urban | Rural | |
| General Category | 10% | 15% | 25% |
| Special (including SC / ST / OBC /Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas etc. | 05% | 25% | 35% |
2nd Loan for up gradation of existing PMEGP/MUDRA units
| Categories of beneficiaries under PMEGP (for up gradation of existing units) | Beneficiary’s contribution (of project cost) | Rate of Subsidy (of project cost) |
| All Categories | 10% | 15% (20% in NER and Hill States) |
Sub scheme 1.2. Credit Guarantee Trust Fund for Micro & Small Enterprises (CGT SME)
Description
Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI) jointly established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in order to implement Credit Guarantee Scheme for Micro and Small Enterprises. The corpus of CGTMSE is contributed by Government of India and SIDBI. 75% of the loan amount to the bank is guaranteed by the Trust Fund.
Credit facilities eligible under the Scheme
The Trust shall cover credit facilities (Fund based and/or Non fund based) extended by Member Lending Institution(s) to a single eligible borrower in the Micro and Small Enterprises sector for credit facility (i) not exceeding Rs. 50 lakh (Regional Rural Banks/Financial Institutions) and (ii) not exceeding Rs.100 lakh (Scheduled Commercial Banks and select Financial Institutions) by way of term loan and/or working capital facilities on or after entering into an agreement with the Trust, without any collateral security and\or third party guarantees or such amount as may be decided by the Trust from time to time.
Nature of assistance
Collateral free loan up to a limit of ₹ 100 lakh is available for individual MSE on payment of guarantee fee to bank by the MSE.
Who can apply?
Both existing and new enterprises are eligible under the scheme.
Sub scheme 1.3 Interest Subsidy Eligibility Certificate (ISEC)
Description
The Interest Subsidy Eligibility Certificate (ISEC) Scheme is an important mechanism of funding khadi programme undertaken by khadi institutions. It was introduced to mobilise funds from banking institutions for filling the gap between the actual fund requirements and availability of funds from budgetary sources.
Nature of assistance
Under the ISEC Scheme, credit at a concessional rate of interest of 4% per annum for working capital, is made available as per the requirement of the institutions. The difference between the actual lending rate and 4% is paid by the Central Government through KVIC to the lending banks.
Who can apply?
The Khadi institutions, having valid Khadi certificate and sanctioned khadi programme.The Institutions registered with the KVIC/State Khadi and Village Industries Boards (KVIBs) can avail of financing under the ISEC Scheme, the Scheme supports only the khadi and the polyvastra sector
Scheme 2. Development of Khadi, Village and Coir Industries
Sub scheme 2.1. Market Promotion & Development Scheme (MPDA)
Description
The Market Promotion and Development Assistance Scheme (MPDA) has been launched as a unified scheme by merging different schemes implemented by the Khadi sector including publicity, marketing, market promotion and marketing development assistance. Further, grant/subsidy will also be available for construction of Khadi plazas. The overall objective of the scheme is to ensure increased earnings for artisans.
Nature of assistance
Modified MDA (MMDA) shall be allowed @ 30% on the Prime cost of Khadi (cotton, silk, woollen) and Polyvastra
Who can apply?
he Khadi institutions, having valid Khadi certificate and categorised as A+,A,B and C only are eligible to avail MMDA grant from KVIC.
Sub scheme 2.2. Revamped Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
Description
The main objectives of the scheme are to:
- To organize the traditional industries and artisans into clusters in order to make them, competitive and provide support for their long term sustainability;
- To provide sustained employment for traditional industry artisans and rural entrepreneurs;
- To enhance marketability of products of such clusters by providing support for new products, design intervention and improved packaging and also the improvement of marketing Infrastructure;
- To equip traditional artisans of the associated clusters with the improved skills and capabilities through training and exposure visits;
- To make provision for common facilities and improved tools and equipments for artisans;
- To strengthen the cluster governance systems with the active participation of the stakeholders, so that they are able to gauge the emerging challenges and opportunities and respond to them in a coherent manner;
- To build up innovative and traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnerships, so as to gradually replicate similar models of cluster- based regenerated traditional industries.
Nature of assistance
The Scheme would cover three types of interventions namely:
‘Soft Interventions’, ‘Hard Interventions’ and ‘Thematic Interventions’. The project outlay for various clusters is as follows: Heritage cluster (1000-2500 artisans Rs 8 cr; Major cluster (500-1000 artisans *): Rs 3 cr; Mini cluster (Up to 500 artisans*) Rs 1.5 cr. *For NER/ J&k and Hill States, there will be 50% reduction in the number of artisans per cluster.
Soft Interventions: A maximum ceiling of Rs 25.00 lakhs (100% scheme funding) Hard Interventions: As per project requirement (75% scheme funding)
Cost of Technical Agency is calculated at 8 % of Soft and Hard Interventions (100% scheme funding). Cost of Implementing Agency/ Cluster Executive is fixed at a ceiling of Rs. 20.00 lakhs (100% scheme funding).
Who can apply?
Non-Government Organizations (NGOs), Institutions of the Central and State Governments and, Semi-Government institutions, field functionaries of State and Central Govt., Panchayati Raj institutions (PRIs), and similar agencies, with suitable expertise to undertake cluster development.
Sub Scheme
2.3 Coir Vikas Yojana (CVY)
| Sr.no | Sub scheme | Description | Nature of assistance | Who can apply? |
| 2.3.1 | Coir Industry Technology Upgradation Scheme (CITUS) | A new component namely “Coir Industry Technology Up gradation Scheme (CITUS)” has been introduced replacing the earlier component i.e. “Development of Production Infrastructure” of Coir Vikas Yojana for giving away assistance to the entrepreneurs for procurement of eligible Plant & Machinery for modernization, up gradation and/or establishing a new unit on making application for the purpose to go for larger investment in the coir sector | The financial assistance shall be 25% of the cost of admissible items of Plant and Machinery procured by the Coir units for modernization, upgradation and/or establishing a new unit. The upper ceiling of the financial assistance will be Rs.2.50 crores per coir unit/ project. | All coir production/processing units newly established will be eligible to apply for assistance. All coir production/ processing units registered with Coir Board under Coir Industry (Registration) Rules, 2008 and having Udyog Aadhar are eligible to apply for financial assistance for modernisation under this scheme. |
| 2.3.2 | Science and Technology (S&T) for Coir | The component envisages extension of the outcomes of research at the laboratory level for application at the field level and extension of testing and service facility. | Technology Transfer, Incubation, Testing and Service Facilities | Technology Transfer, Incubation, Testing and Service Facilities |
Scheme 3. Technology Upgradation and Quality Certification
Sub scheme 3.1 Credit Linked Capital Subsidy for Technology Upgradation (CLCSS)
Description
CLCSS provides 15% subsidy for additional investment up to ₹ 1 crore for technology upgradation by MSEs. Technology upgradation would ordinarily mean induction of state-of-the-art or near state-of-the- art technology. In the varying mosaic of technology covering more than 7,500 products in the Indian small scale sector,
Nature of assistance
The revised scheme aims at facilitating technology upgradation by providing 15% up front capital subsidy to MSEs, including tiny, khadi, village and coir industrial units, on institutional finance availed by them for induction of well established and improved technologies in specified sub-sectors/products approved under the scheme.
Scheme 4 . Entrepreneurship and Skill Development Programme
Sub scheme 4.1. Entrepreneurship Skill Development Programme (ESDP)
Entrepreneurship Development Programmes are being organized regularly to nurture the talent of youth by enlightening them on various aspects of industrial activity required for setting up MSEs. These EDPs are generally conducted in ITIs , Polytechnics and other technical institutions, where skill is available to motivate them towards self-employment.
Nature of assistance
20 % of the total targeted of ESDPs are conducted exclusively for weaker sections of the society i.e. (SC/ST/women and PH) with a stipend of Rs.500/- per month per candidate under the Promotional Package for (Micro, Small Enterprises) MSEs. No fee is charged from the candidates under these programmes.
Who can apply?
Institutions of Ministry of MSME and existing State level EDIs.
Scheme 5 . Infrastructure Development Programme
Sub scheme 5.1. Micro & Small Enterprises Cluster Development (MSE-CDP)
The Ministry of MSME has adopted cluster development approach for enhancing productivity and competitiveness as well as capacity building of MSEs. The Scheme supports financial assistance for establishment of Common Facility Centres (CFCs) for testing, training centres, R&D, Effluent Treatment, raw material depot, complementing production processes etc
Nature of assistance
Hard interventions, i.e., setting up of CFCs with maximum eligible project cost of Rs 15.00 cr with GoI contribution of 70% (90% for special category States and for clusters with more than 50% women/micro/village/ SC/ST units). Infrastructure development in the new/ existing industrial estates/areas in which the maximum eligible project cost is Rs 10.00 cr, with GoI contribution amounting to 60% of project cost (80% for special category States and for clusters with more than 50% women/micro/SC/ST units).
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