Guidelines for Promotion of MSMEs in NER and Sikkim
The Ministry of MSME is proactively aiming to promote MSMEs in the country. However, there is a need for particular treatment when it comes to the development of MSMEs in the North Eastern Region and Sikkim. With this goal in mind, a specific scheme for the 'Promotion of MSMEs in the North Eastern Region and Sikkim' was authorized on August 2, 2016, after combining the four schemes, viz.
Toolrooms and technical institutions.
Promoting MSMEs in the North Eastern Region and Sikkim.
Infrastructure support for MSME Testing Centers, Testing Stations, Training Institutes, Workshops, and MSME Development Institutes (Field Institutes).
Capital Outlay on Public Works: The EFC created and approved a new Central Sector Scheme of "Technology and Enterprise Resource Centres" at its meeting on January 16, 2018. The Competent Authority has approved the scheme.
Revised Scheme Guidelines:
In addition to replacing previous recommendations, these new rules for the Scheme "Promotion of MSMEs in the North Eastern Region and Sikkim" cover financing structures and procedures. The guidance will be effective prospectively from the date of issuance, ensuring that all stakeholders are considered. Past liabilities will be addressed in accordance with the scheme's existing guidelines.
Eligibility and Applicability for the Scheme:
The eligibility for the scheme is determined by the state government or any state government organization involved in promoting MSMEs.
Objective of the Promotion of MSMEs in the North Eastern Region and Sikkim:
The scheme aims to provide financial assistance primarily for infrastructure development, productivity enhancement, sustainability, competitiveness, and growth. It addresses common issues such as improving technology, skills, quality, and market access for Micro, Small, and Medium Enterprises (MSMEs).
Establish shared facilities in NER and Sikkim to support manufacturing, testing, packaging, R&D, product and process innovation, and training for natural resources such as fruits, spices, agriculture, forestry, sericulture, and bamboo.
In order to develop the tourism industry in NER and Sikkim, it is essential to establish standard services such as a kitchen, bakery, laundry and dry cleaning, refrigerated and cold storage, IT infrastructure, potable water, a display center for local products, a center for cultural activities, and more within a cluster of homestays.
To develop and improve infrastructure in new and existing industrial areas for MSMEs.
Components of the Scheme:
The sub-components of the scheme include:
1. Establishing new Mini Technology Centers and updating those that already exist
Objective: The scheme aims to provide state governments with funding to develop new mini-technology centers and upgrade their current ones.
Financial assistance:The financial support will cover up to Rs. 10.00 crore, or 90% of the cost of buildings, machinery, and equipment. The Indian government will not fund land costs, and building costs can only be up to 20%.
2. Creation of both new and existing industrial estates
Objective: The goal is to provide financial support for the growth of both new and existing industrial estates.
Financial assistance:For the construction of new and existing industrial estates, 80% of the cost of infrastructure facilities up to Rs. 8.00 crore would be approved. The infrastructure would consist of highways, banks, storage and marketing outlets, water and telecommunication facilities, drainage and pollution control services, and a power distribution system.
3. Capacity Building of Officers
Objective: Capacity By assigning them to different techno-managerial training programs in MSME institutions like NI-MSME, Hyderabad & MSME Technology Centers, and other reputable organizations at the national level, officers involved in the promotion and development of MSMEs are built.
Financial assistance:The Government of India would pay the training price and officers' boarding and lodging costs directly to the training institutions (for a maximum of seven days) under the proposal. The state governments or the relevant departments would be responsible for covering the cost of TA/DA for the domestic training. Apart from the course price, the Government of India will cover the cost of TA/DA for international training programs if the participant travels by the quickest economy class route. The maximum amount that can be spent on both is Rs. 1.5 lakh per participant. Individual state governments will be responsible for covering the costs related to the domestic area.
4. Additional Activities:
Objective: Funds from the scheme can be used for a number of projects, including research studies, evaluation studies, institute strengthening (soft intervention only), etc. Demand-based services like knowledge services and human capital development, company development services, and access to operational services (business ecosystem), including markets, business networks, technology, finance, and infrastructure, will also be included. For the growth and promotion of businesses in the fields of honey, bamboo, organic products, etc., state governments or other organizations may create these projects specifically. It is also possible to construct IT modules that will make doing business easier for micro and small businesses operating in Sikkim and NER.
Financial assistance:With complete justification for each DPR component, each such intervention may cost up to Rs. 1.00 crore.
MSME Benefits in the North Eastern Region and Sikkim:
The company has a number of advantages when it registers as an MSME.
Loans from banks (collateral-free)
The Indian government has made collateral-free loans available to all small and micro businesses. This initiative provides benefits to both existing and new enterprises. The Credit Guarantee Trust Fund Scheme was established by the Government of India, SIDBI (Small Industries Development Bank of India), and the Ministry of Micro, Small, and Medium Enterprises to ensure that the Credit Guarantee Scheme is accessible to all micro and small enterprises.
Patent Registration Subsidiary
Under the existing law, MSMEs registered with the MSME ministry are entitled to a 50% reimbursement on the cost of patent registration. This incentive encourages both large corporations and small businesses to develop new technologies and activities. Businesses can submit a request to the appropriate ministries to obtain the subsidies.
Interest Rate Exemption for Overdrafts
Businesses and companies categorized as MSMEs are eligible for a 1% reduction on their overdraft under a scheme that differs from bank to bank. Because of this, small businesses are safer during unpredictable market conditions.
Anti-Payment Protection (Delayed Payments)
Late payments pose a continuous threat to MSMEs, disrupting their entire business. In order to safeguard registered firms, the Supreme Court has ruled that any purchaser of goods or services from a registered MSME must make payment on or before the agreed-upon date or within 15 days of accepting the goods or services. If the buyer fails to make payment within 45 days of receiving the goods or services, interest will be levied on the agreed-upon amount.
Electricity bills are lower.
Any business with an MSME Registration Certificate is eligible for energy bill reductions. The discount is available to micro, small, and medium-sized companies that apply to the Department of Electricity and provide their certificate of registration.
Reimbursement of ISO Certification Fees
Any micro, small, or medium-sized registered business may seek reimbursement for costs related to achieving ISO certification. This encourages business owners to obtain their companies ISO accredited so they may export high-quality goods and conduct international trade.
Applying for the Promotion of MSMEs in the North Eastern Region and Sikkim:
Suppose the state government wants to receive funding under the scheme. In that case, it will create a proposal and choose an agency, ideally the Department of Industries & Commerce or another state government agency that promotes MSMEs, to carry out the project. After that, the plan can be submitted for approval on the scheme portal, www.ner-promotion.msme.gov.in.
Conclusion
Micro, small, and medium-sized enterprises, or MSMEs, are now a vital component of the Indian economy. MSMEs enable a nation's citizens to go it alone, creating new jobs and diversifying the GDP of an area. By providing jobs, loans, and other services to the artisans, they have also contributed to the revival of the artisans in India's outlying regions. Additionally, they consistently support the modernization of the nation and our society at large, as well as the development of infrastructure and technical developments.
Additional Read:
Everything to know about MSME Innovative Schemes
The Growth of MSME: Key Objectives & Benefits of the RAMP Scheme
A Comprehensive Guide to CGTMSE Loan For MSMEs
Understanding CGTMSE: Small Business Financing Made Easy
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