Micro, Small and Medium Enterprises
Micro, Small and medium enterprises (MSMEs) are the major contributor to Indian Economy. They provide employment to over 40% of workforce in India and contribute around 45% of manufacturing output. In India, due to their low scale and poor adoption of technology, MSMEs have very poor productivity. Financing is the biggest challenge and the lack of it is the main reason for an SME going out of business.
Recently, Government changes the criteria for defining MSME. According to the new amendment, MSME will be categorised on the basis of their annual turnover instead of investment in plant and machinery/equipment as under:
|Nature of Business||Turnover|
|Micro enterprise||Upto 5 crore|
|Small enterprise||Upto 75 Crore|
|Medium enterprise||Upto 250 Crore|
Schemes for MSME
1. Prime Minister Employment Generation Programme
|Nature of Assistance||Manufacturing = Rs. 25 Lakhs
Service Sector = Rs. 10 Lakhs
|How to Apply||The beneficiaries can also submit their application online at http://www.kviconline.gov.in/pmegp/pmegponlineapp and take the printout of the application and submit the same to respective offices along with Detailed Project Report and other required documents.|
2. Credit Guarantee Trust Fund for Micro & Small Enterprises
|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|
|How to Apply||Candidates meeting the eligibility criteria may approach banks / financial institutions, and select Regional Rural Banks which are eligible under the scheme. Web links are www.dcmsme.gov.in/schemes/sccrguarn.htm|
3. Interest Subsidy Eligibility Certificate (ISEC)
|Nature of Assistance||Credit at a concessional rate of interest of 4% per annum for working capital is made available and 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 registered with the KVIC/State Khadi and Village Industries Boards (KVIBs)|
|How to Apply||The Khadi institutions will apply to the financing bank for working capital alongwith the ISEC certificate issued by KVIC. Based on the working capital sanctioned, financing bank will raise the reimbursement claim to the nodal branch for the differential interest rate over and above 4%.|
There are many schemes specially designed for MSME which can be accessed through http://msme.gov.in/all-schemes
How to Register MSME with Government or Getting Udyog Aaadhar Number ??
Registration of MSME with Government not statutory but for availing benefits of various schemes of government, Udyog Aaadhar Number is must. Following is the procedure for registration of your MSME with government.
Login to https://udyogaadhaar.gov.in/UA/UAM_Registration.aspx. Enter Aaadhar No. and name of entrepreneur. Site will verify your name with Aadhar database. After verification, following details will require for registration:
After submitting application, Portal generate certificate of registration mentioning Udyog Aaadhar Number.
Benefits of Udyog Aaadhar Registration: