Micro, Small and Medium Enterprises (MSME) has been
a backbone of the economic growth over the last few decades. MSMEs play crucial
role in providing large employment opportunities on low investments thereby
reducing the major employment problems and also help in industrialization of
rural & backward areas.
Government in order to support and promote the small
business has extended relaxations to MSMEs through various subsidies, schemes
and incentives. This
helps them in encouragement, enhancement of their business thereby helps in
improving productivity of the enterprises.
A brief on few of
the schemes provided by the government are as follows:
1. Providing
financial assistance on International Co-operation
This scheme covers the deputation
of MSME to other countries for promoting the MSME business, products, infusion
of the technology, facilitating joint ventures. This scheme provides financial
assistance of up to 95% of air tickets and for lodging purpose of
entrepreneurs. Through this scheme the government shall provide the assistance
to MSME attending international exhibitions, trade fair, conferences, seminars.
This scheme shall also cover the common expenses of delegation like freight
& insurance, local transport, communication services, etc.
2. Assistance
to Training Institutions scheme for establishments of new institutions
Under this scheme government
provide the capital assistance of 150 lakhs but subject to max 50% of project
cost for creation of infrastructure for conducting entrepreneurship development
and skill development programmes. However, for the North Eastern region, Andaman
& Nicobar and Lakshadweep, maximum assistance would be Rs.270 lakhs or 90%
of 2 project cost, whichever is less.
3. Marketing
Assistance Scheme
Under this
scheme government provides assistance for organizing exhibitions abroad and
providing financial assistance of upto 95% of the airfare and for lodging of entrepreneurs
and for co-sponsoring would be limited to 40% of the net expenditure, subject
to a maximum amount of Rs.5 lakh.
4.
CreditGuarantee Trust
This trust has been set up by ministry of MSME and
SIDBI in order to implement Credit Guarantee Scheme under which collateral free
loan up to a limit of ₹ 100 lakh is available for individual Micro & small
enterprises (MSE) on payment of guarantee fee to bank by the MSE.
5.
Prime Minister’s Employment
Generation Programme
Under
this scheme the government provides the certain percentage of subsidy of cost
of production depending upon sector they are into.
Under the manufacturing sector of
max investment size of 25 lakh
1.
Rural
sector
·
General-
25% of cost of production of subsidy
·
Special(SC/ST/OBC)-35%
of cost of production of subsidy
2.
Urban
Sector
·
General-
15% of cost of production of subsidy
·
Special(SC/ST/OBC
)-25% of cost of production of subsidy
Under the service sector of max
investment size of 10 lakh
1.
Rural
sector
·
General-
25% of cost of production of subsidy
·
SC/ST/OBC-35%
of cost of production of subsidy
2.
Urban
Sector
·
General-
15% of cost of production of subsidy
·
SC/ST/OBC-25%
of cost of production of subsidy
From time
to time government lends numerous benefits to MSME Registration for the
economic growthon which we will brief later on.
Source
url- http://enterslice.over-blog.com/2018/05/government-msme-schemes-for-entrepreneurs.html
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