New Delhi : Distressed Assets Fund -Subordinate Debt for stressed MSMEs- Credit Guarantee Scheme- Subordinate Debt (CGSSD):
The Scheme was launched on 24.06.2020 and it has been extended till 31.03.2022. During the period of January, 2021 to November, 2021, guarantee to 537 borrowers amounting to Rs. 59.98 crore have been released.
ii) Fund of Funds Scheme for MSMEs: Self Reliant India (SRI) FUND
- a) SRI Fund is a Category-II Alternative Investment Fund registered with SEBI with Mother Fund / Daughter Fund structure. The Government of India is the sole anchor investor with the initial budgetary support of Rs. 10,000 crore to the mother fund in phased manner. This shall stand leverage to the extent of Rs. 50,000 crores through Daughter Funds. For anchoring the Mother Fund, NSIC Venture Capital Fund Limited (NVCFL), subsidiary of The National Small Industries Corporation Limited (NSIC) has been incorporated under the Companies Act 2013.
- b) NVCFL has been registered as a Category II Alternative Investment Fund and the Private Placement Memorandum of SRI Fund has been approved. Contribution Agreement, duly vetted by the Department of Legal Affairs, Ministry of Law & Justice was executed by the Anchor Investor (M/o MSME, Government of India), Sponsor (NSIC), AIF Company (NVCFL) and the Investment Manager (SBICAP Ventures Limited), in the presence of the Hon‟ble Minister of MSME, Hon‟ble Minister of State for MSME and Secretary MSME.
- c) Within 3 months of signing of the Contribution Agreement, Rs. 2,640 crore (representing 26.38% of the total Fund corpus) has been committed. By the end of FY2021-22, it is expected another Rs. 500 crore worth of commitments will be provided. However, deployment of Funds will be in phases as per demand raised by the empanelled Daughter Funds.
- a) To provide funding support to the MSMEs through the Daughter Funds, as growth capital in the form of equity or quasi-equity, for enhancing equity / equity like financing to MSMEs, listing of MSMEs on Stock Exchanges and supporting faster growth of MSME Businesses and thereby ignite the economy and create employment opportunities.
- b) supporting enterprises which have the potential to graduate beyond the MSME bracket and become National / International champions; and
- c) supporting MSMEs in making India self-reliant by producing relevant technologies, goods and services.
- d) The fund shall be dispersed through daughter funds across the Nation to all MSMEs as defined in MSMED Act.
2. Policy Initiatives:
- a) Udyam Registration (UR) Portal:
It provides faceless, fully online, paperless and transparent MSME registration process fully integrated with Income Tax and GSTIN systems. Total MSMEs Registered on Udyam Registration Portal during the period from 01.01.2021 to 31.10.2021 is 38,78,748.
b) Exemption from requirement of having GSTIN
This Ministry, wide notification No. S.O.1055(E) dated 05.03.2021, has notified that the exemption from the requirement of having GSTIN shall be as per the provisions of the Central Goods and Services Tax Act, 2017 (12 of 2017), which will let more and more MSMEs to register on Udyam Registration portal.
c) Inclusion of Retail and Wholesale Trade:
With effect from 2nd July, 2021, the Government has included Retail and Wholesale trades as MSMEs. They are allowed to be registered on Udyam Registration Portal. Benefits to them are restricted to Priority Sector Lending only.
· Inclusion of Urban Street Vendors in MSME Category:
With effect from 2nd. August. 2021, the Government has included Street Vendors as Retail Trades as MSMEs. They are allowed to be registered on Udyam Registration Portal. Benefits to them are restricted to Priority Sector Lending only.
d) SAMADHAAN Portal for delayed payments:
A special sub-portal within SAMADHAAN portal (https://samadhaan.msme.gov.in/) an online reporting system developed for reporting the dues and monthly payments by GOI Ministries and CPSEs to the MSMEs was launched on 14″ June, 2020. Dues of Rs. 50,438.59 crore have been paid to the MSME vendors by Government Ministries/Departments/CPSUs during the period from 01.01.2021 to 31.10.2021.
3. MSME Champions:
- MSME Champions scheme has been formulated through Standing Finance Committee (SFC) by merging all 6 components of erstwhile Technology Upgradation Scheme (TUS). It is a Holistic Approach to unify, synergize and converge various schemes and Interventions with a single purpose. The end objective is to pick up clusters and enterprises and modernize their processes, reduce wastages, sharpen business competitiveness and facilitate their National and Global reach and excellence. There are 3 components under the new MSME Champions scheme, the details of which are as below:
- MSME-Sustainable (ZED)
- MSME-Competitive (LEAN)
- MSME-Innovative (for Incubation, IPR, Design and Digital MSME)
The Digital MSME will be interlinked with all the other components of the MSME Champions Scheme.
The details on the objectives and achievements in MSME Champions Scheme (erstwhile CLCS-TUS comprising six components ZED, Lean, Incubator, Design, IPR, & Digital MSME) are as follows:
Brief Achievements of MSME Champions Scheme (erstwhile CLCS-TUS) for the period (January, 2021 to October/November, 2021)
|Name of the Scheme||Description||Who can apply/ How to Apply||Achievements
(January, 2021 to
|MSME Sustainable (ZED) Certification is
an extensive drive to
|23948 nos. of MSMEs registered
under ZED scheme
amongst MSMEs about Zero Defect Zero Effect (ZED) practices and motivate and incentivize them for ZED Certification while also encouraging them to become MSME Champions. Through the journey of ZED Certification, MSMEs can reduce wastages substantially, increase productivity, enhance environmental consciousness, save energy, optimally use natural resources, expand their markets, etc. MSMEs will also be motivated to adopt best practices in work culture, standardization of products, processes and systems etc. in order to enhance their global competitiveness and sustainability. The ZED Certification aims at enhancing the competitiveness of an MSME by assessment, modification through guidance, handholding, managerial and technological intervention – not just certification.
|g MSMEs.||since inception.
503 MSMEs has been rated under the scheme.
(LEAN) Scheme is for enhancing the
|In 267 clusters
approx.) the Scheme
MSME Sectors through implementation of Lean Tools and Techniques. Lean Tools and Techniques are a tested and proven
competitiveness of MSME sector.
|g MSMEs.||has been
implemented throughout the country by QCI and NPC.
Reduction in waste and savings through Lean Manufacturing: 5-
Innovative (Incubation, IPR, Design and Digital MSME) SME-
Innovative (for Incubation, IPR, Design and Digital MSME)
|MSME Innovative is a
new concept for MSMEs with a
incubation, design intervention and by protecting IPR in a single mode approach to create awareness amongst MSMEs about India‟s innovation and motivate them to become MSME Champions. This will act as a hub for innovation activities facilitating and guiding development of ideas into viable business proposition that can benefit society directly and can be marketed successfully.
“Digital MSME” Scheme is to make MSMEs digitally empowered and motivate them to adopt digital tools,
|(i) Incubation: Udyam Registered manufacturin g MSMEs/Othe rs To||Host Institutes (HIs)
approved: 39 nos.
Ideas approved: 87 nos.
|(ii) Design: Udyam Registered manufacturin g MSMEs
MSMEs can submit their proposal to Implementing Agency (IA) as per scheme Guideline.
The scheme guideline is available at:
|No. of Professional Design /Student Projects
22 nos. of Toy Design Projects approved under the scheme.
Ministry has signed
20 MoUs with IITs/NITs for implementation of Design Scheme
Ministry of MSME, UNIDO, Global Environment Fund (GEF) -5 Project on “Promoting Market Transformation for Energy Efficiency in MSMEs.
The project intends to develop and promote market environment for MSMEs by introducing energy efficient technologies and enhancing the use of identified technologies in the clusters. The programme focuses on ten clusters from seven sectors (Pulp & Paper, Textile, Food Processing, Pharma, Chemical & Dye, Foundry & Forging, Iron & Steel). The project is under GEF programmatic framework for energy efficiency in India and includes United Nations Industrial Development Organization (UNIDO) as the Implementing Agency (IA) and Ministry of MSME as the Lead Executing Agency (EA). The key executing partner for the project is Energy Efficiency Services Ltd (EESL). Small Industrial Development Bank of India (SIDBI) and Bureau of Energy Efficiency (BEE) are the guiding agencies for the project.
The project specific objectives are as follows:
Energy Saving Target:
The project is expected to result directly 956,183.80 GJ of energy savings per year, with lifetime investment for 10 years, as a result of saving of 9,561,838 GJ energy. There will be a target of reduction of 86,000 Tonnes of CO2 emission per year.
iii. 470 MSME units will be directly benefitted by adoption of 35 energy efficient technologies. So far, due to this intervention, around 50 MSME units have implemented these energy efficient technologies in their units.
(b) Single Use Plastic (SUP) : Ministry of Environment, Forest & Climate Change had issued a notification in the Gazette of India vide G.S.R. 571(E) on 12th August 2021 for amending Plastic Waste Management Rules, 2016, inter alia prohibiting the use of identified single use plastic items by 2022.Considering the adverse impacts of littered plastic waste on both terrestrial and aquatic ecosystems, Ministry of MSME is actively supporting the Implementation of Plastic Waste Management Rule-2016 and its amendment in the year 2018 & 2021 including phasing out of notified single use plastic items across the MSMEs. The details of the few actions taken are as below:
iii. Based on the consultation/suggestions emerged from the stakeholders, MoEFCC, industry associations, experts, MSME Officials, a comprehensive action plan is prepared for assisting MSMEs through various schemes of this Ministry w.r.t. technology up gradation, creating awareness, marketing supports, infrastructural support and for adopting alternatives to SUP etc.
(c) Hydrogen As a Fuel For MSMEs: Under National Hydrogen Mission and the vision of Prime Minister, this Ministry has taken a lead to explore the possibility of the feasibility of using Hydrogen as a fuel by MSMEs in their manufacturing process.
4. Prime Minister’s Employment Generation Programme (PMEGP):
5. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE):
During the period January 2021 to 30th. November ,2021, a total of 7,53,321 guarantees have been approved, involving an amount of Rs. 43,474.28 crore approximately.
6. Interest Subvention Scheme for Incremental Credit to MSMEs- 2018:
During the period January 2021 to 30th November 2021, a total of 92517 borrowers have been benefited by releasing an amount of Rs. 210.71 crore approximately. The scheme was in force till 31.03.2021.
7. Cluster Development Programme
8. SFURTI Clusters:
9. Technology Centers/Tool Rooms:
ACHIEVEMENTS /INITIATIVES OF THE OFFICE OF DC (MSME) DURING
FY 2020-21 (during 1st Jan 2021 to 25 Nov. 2021)
(i) A precision component “Grip Jaw” (an import substitute) through reverse engineering which is used in clamping of sheets in Steel Rolling Mill. This item is manufactured for M/s. Automotive India, Kolkata, an MSME.
(ii) Auto coupler male & female assembly through reverse engineering for perching Nitrogen gas into the molten material in Tata Steel Jamshedpur. It is an import substitute (being imported from Germany).
(iii) 42 nos. tools which are used in manufacturing of Russian made 7.62mm PKT Machine Gun Bullet Loader Mechanism (Import Substitute) for Ordnance Factor y, Dumdum.
Fight against Covid 19 :-
For Covid-19 related MSME TCs have developed, manufactured various components /products and shared these with MSMEs for domestic/indigenous production and marketing.
10. Technology Centre Systems Programme (TCSP):
11. Technology Centres/ Extension Centres (TCEC):
12. Public Procurement Policy for MSEs Order, 2012:
Key features of “MSME SAMBANDH PORTAL”:
As per information uploaded on MSME SAMBANDH Portal for FY 2018-19, 2019-20, 2020-21 and current year (Till 08.12.2021) the details of the annual/Month wise (January,2020-November,2021) procurement of goods and services from MSEs including SC/ST and Women by the CPSEs is given as under:
13. GeM- Government e-Marketplace:
14. Entrepreneurship Skill Development Programme (ESDP):
15. Promotion of MSMEs in North Eastern Region (NER) and Sikkim:
16. National Schedule Caste and Schedule Tribe Hub (NSSH):
Intervention undertaken under National SC-ST Hub and the achievement during the period January 2021 to November 2021 include the following:
17. Popularizing Khadi and Empowering Village Industries
17.1 Khadi Vikas Yojana (Khadi Programme):-
a) Modified Market Development Assistance (MMDA}
b) Interest Subsidy Eligibility Certificate (ISEC) Scheme
c). Work-shed Scheme for Khadi Artisans
d). Strengthening of Infrastructure of Existing Weak Khadi Institutions and assistance for marketing infrastructure
17.2 Gramodyog Vikas Yojana (Village Industry Programme)
b. Honey Mission/beekeeping under Agro Based and Food Processing Industry:
17.3 Khadi Reform and Development programme
17.4. Performance of Khadi& Village Industries 1st January 2020 To 31st October, 2020
(Rs. in crore and Employment in lakh persons)
18. Coir Vikas Yojana:
19. Assistance to Training institutions: –
20. International Cooperation: –
(i) Bilateral Matter:
(ii) Brief of International Cooperation (IC) Scheme:
International Cooperation (IC) Scheme is a Central Sector Scheme administered by Ministry of Micro, Small and Medium Enterprises (MSME). The Scheme is in operation since 1996. IC Scheme guidelines 2021 aims to capacity build MSMEs for entering export market by facilitating their participation in international exhibitions/trade fairs/conferences/seminars/buyer-seller meets abroad as well as providing them with actionable market-intelligence and reimbursement of various costs involved by export of goods and services. The scheme provides opportunities to MSMEs to continuously update themselves to meet the challenges emerging out of changes in technology, changes in demand, emergence of new market etc.
‘Sambhav’ e-National level Awareness Programme is being implemented by the Ministry to promote entrepreneurship culture and create awareness about schemes/initiatives of the Ministry amongst students & Youth through Audio/video film presentations. The Programme has been launched on 27.10.2021. Under the mass outreach programme, students of different colleges from all parts of the country are being encouraged to take up entrepreneurship. Further, as on 02.12.2021, a total of 61,481 students have participated in
“Sambhav” across India.