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MSME schemes - Do you know all of them?

How many Government schemes are currently in place to support our micro, small and medium enterprise sector? You may find this a little difficult to answer! Some of the schemes are widely known, but about many others information is not easily available. Here, I have prepared a list of various programmes, schemes and incentives offered by the MSME ministry, and request you to check whether you are aware of them or not.

As far as credit facilitation -- the biggest problem of our MSMEs -- is concerned, there are a number of schemes, including Credit Guarantee Fund Scheme for MSEs (CGMSE) that covers collateral free credit facility, Micro Finance Programme operated by SIDBI, Trade Related Entrepreneurship Assistance and Development (TREAD) Scheme for women, and Performance and Credit Rating Scheme under which MSMEs can get themselves rated by any of seven accredited agencies.  

Similarly for skill development, there are a number of programmes, including Industrial Motivation Campaigns, Entrepreneurship Development Programmes (EDPs), Entrepreneurship Skill Development Programmes (ESDPs), Management Development Programmes (MDPs), Rajiv Gandhi Udyami Mitra Yojana (RGUMY), etc. In addition, a number of Tool Rooms & Technical Institutions and Technology Development Centres (Research Institutes) located across the country provide training and assistance to MSMEs.

To support small enterprises in marketing, the MSME ministry offers as many as five schemes, including International Co-operation Scheme, Market Development Assistance Scheme for MSEs (SSI-MDA) - Participation in Exhibition, Vendor Development Programme for Ancillarisation, WTO Export Programme (EP), and Public Procurement Policy for goods produced and services rendered by MSEs by the Central Ministries, Departments and PSUs.

On technology upgradation, there are two notable MSME schemes: Credit Linked Capital Subsidy Scheme and ISO 9001/ISO 1400/HACCP Certification Reimbursement Scheme. Under the first scheme, 15 percent upfront capital subsidy is provided on term loan for induction of improved technologies while the second one is designed to incentivize quality upgradation, improvement, environment management and food safety systems.

For enhancing manufacturing competitiveness, the Ministry offers a number of schemes including Lean Manufacturing Competitiveness Scheme and Design Clinic Scheme, Promotion of ICT Tools in MSME sector, Technology and Quality Up-gradation Support, Marketing Assistance and Technology Up-gradation Support, National Campaign for Building Awareness on IPR, Support for Entrepreneurial and Managerial Development of SMEs through Incubators, Encouraging Adoption of Bar Codes, etc.

So, there is no dearth of schemes -- close to 58 only from the Ministry of MSME, and and if we add to them those offered by NSIC, KVIC, and Coir Board, the list will get much longer-- but despite this, the sector has not achieved much from them. Beyond doubt, this is primarily due to the operational inefficiencies in our current system for small business support, and only a genuine root-and-branch reform in this direction could change the situation, but at the same time I think our lack of awareness is also responsible, at least to some extent.

I hope you will find this information useful. If you need some more information on the MSME schemes, I request you to write to us.