1. MICRO, SMALL & MEDIUM ENTERPRISES DEVELOPMENT INSTITUTE
(BRANCH)
AUTONAGAR
VISAKHAPATNAM
( MINISTRY OF MSME, GOVT. OF INDIA)
A presentation by K R K Prasad, Director, MSME-DI, (Br) ,Visakhapatnam

2. OBJECTIVE of the Organization
"Imparting greater vitality and growth impetus  to the Micro, Small and Medium Enterprises (MSME) in terms of output, employment and exports and instilling a competitive culture based on heightened technology awareness."

3. MSME-DI ( Vizag) hierarchical structure
Min of MSME
DC(MSME)
MSME-DI Hyderabad
Br. MSME-DI, Vizag
Separate Ministry dedicated to promotion of MSME sector
Apex body for formulating policy for MSME development
Present jurisdiction extends to 5 coastal districts of Skk, Vzn, Vizag, EG & WG

4. The MSMED Act, 2006 – a paradigm shift
Service sector recognized. ‘Industry’ replaced by ‘Enterprise’
Micro enterprise recognized as a separate category
Medium enterprise defined for the first time
Legal provision for delayed payments strengthened
Statutory basis to purchase policy and National Board for MSMEs
Registration of MSMEs made optional

5. Definition of M S M E Manufacturing sector
( Investment limits in Plant & Machinery)
Service sector
( Investment limit in Equipment)
Micro
Upto Rs 25 lakhs
Upto Rs 10 lakhs
Small
Upto Rs 5 crores
Upto Rs 2 crore
Medium
Upto Rs 10 crore
Upto Rs 5 crore

6. ACTIVITIES OF MSME-DI (BR)
Assistance for start-ups:
Free consultancy in
Selection of product, location, process, machinery etc.
Assistance in Project Report preparation
Guidance in getting registrations (preliminary and permanent) and other documentation required
Liaisoning with other development agencies for providing support to start- ups.

7. Assistance to start-ups
Training :
Prospective entrepreneurs or their personnel are provided training in the areas of
1. Industrial Motivation Camps
2. Entrepreneurship Development
3 . Entrepreneurship and Skill Development
4. Management Development

8. Industrial motivation campaigns (IMC)
Organized with a view to motivate youngsters towards self-employment by starting small enterprises.
Educated young people are introduced to the exciting world of entrepreneurship, its advantages and challenges.
They are encouraged to give shape to their ideas Are explained about the Govt and Non Govt machinery existing to assist them.
Organized mostly in Engg colleges, degree colleges and MBA colleges, as also in villages and small towns

9. Entrepreneurship Skill development programmes
A start-up entrepreneur lacks real-time knowledge of running an enterprise. Entrepreneurship Development Programmes ( EDPs / ESDPs ) of MSME-DI exposes him to various aspects like :
information on product/process design,
manufacturing practices involved,
testing and quality control,
selection and usage of appropriate machinery and equipments,
project profile preparation,
marketing avenues/techniques,
product/service pricing,
export opportunities,
infrastructure facilities available,
financial and financial institutions,
cash flow, etc
Socially and Economically backward groups are given priority. Stipendiary programmes are organized for them.

10. Management Development Programmes
Aim to sharpen the Managerial and decision-taking skills of existing/prospective entrepreneurs.
Help in increasing productivity and efficiency of existing units through better Management practices.
Scope covers areas like Industrial Management, Human Resource Development, Marketing Management, Export Documentation, Materials Management, IPR, Communication skills, etc.

11. Finance related Assistance to start-ups: CGMSE
Credit Guarantee Scheme for MSEs ( CGS) provides credit ( term loan and working capital) to start-up MSEs / existing MSEs without the hassles of collateral/third party guarantee. MSEs within credit cap of Rs100 lakhs are eligible. Guarantee cover is to the extent of 75% ( 80% for women entrepreneurs) of sanctioned credit, with max guarantee cap of Rs 62.5 lakh ( Rs. 65 lakh for women entrp)

12. CGMSE
Guarantee cover is 85% for Micro units for credit upto Rs 5 lakhs
All Scheduled Commercial Banks, some Regional Rural Banks, SIDBI and NSIC are eligible Member Lending Institutions (MLIs)
Manufacturing or Service MSEs are eligible .(except retail trade)
Guarantee fee of 1 .5% of sanctioned loan between 5 to 100 lakhs payable upfront ( 1% for loans less than 5 lakhs)
Annual service fee of 0.75% of amount guaranteed ( 0.5% for loans less than 5 lakhs)
Interest rate shall not exceed 3% over and above the Prime lending rate of the bank.

13. Schemes for existing entrepreneurs
Schemes for MSMEs are classified under:
MSME-DO Schemes
National Manufacturing Competitiveness Programme

14. Schemes of Min. of MSME : For Marketing
Marketing Development Assistance: MSME-DI facilitates MSEs to participate in selected International Trade Fairs by reimbursing 50% of cost towards space rent and75% of airfare. (limited to Rs lakhs per MSE) ( 100% for Women, SC/ST/NER)
International Co-operation Scheme:
Assistance for participation of MSME delegation in Int Trade Fairs, Market survey, Business Development.
Assistance for organizing International conferences in India or abroad
Vendor Development programmes: organized with an aim to promote vendor registration and increase participation of MSMEs in supplying to PSUs/ Govt Depts etc in accordance to Public Procurement Policy.
20 Products reserved for exclusive manufacture by Micro & Small enterprises.

15. Reserved products Pickles & chutneys Steel almirah Bread
Rolling shutters
Mustard oil ( excpt solvent extracted)
Steel chairs – all types
Steel tables- all other types
Ground nut oil ( excpt solvent extracted)
Steel furniture – all other types
Padlocks
Wooden furniture and fixtures
Stainless steel utensils
Exercise books and registers
Domestic utensils – Aluminium
Wax candles
Laundry soap
Safety matches
Fire works
Agarbathies
Glass bangles

16. For Technology Upgradation
CLCSS: Credit Linked Capital Subsidy Scheme provides 15% subsidy to MSEs adopting specific identified modern technology . List of identified technologies available at
ISO 9000/14000 Scheme : Reimbursement of expenses incurred in acquiring ISO 9000, 14000, HACCP standards s.t max of Rs /-

17. Vendor Development – Public Procurement Policy
Every Central Ministry/Department / PSU to set goals for procuring products/services from MSEs.
From April 2015, 20% purchases from MSEs by all Central Ministries, Depts and PSUs becomes mandatory.
4% of the total purchase should be from SC/ST MSE entrepreneurs. ( i.e, 20% of above mentioned 20%)
Price preference: In tender, if an MSE quotes price within L1 + 15%, and L1 when L1 is quoted by a non-MSE., then MSE should be allowed to supply a portion of the requirement by bringing down price to
Tender sets to be provided free of cost. MSEs to be exempted from paying EMD.
358 items reserved for exclusive purchase from MSEs.

18. For Women entrepreneurs – TREAD
Aims at providing financial assistance to women who have no access to credit.
Funding done through NGOs
30% GoI grant for income generating activities for group of women through NGO
Grant of upto Rs 1 lakhs for Training organizations to conduct training programmes for empowerment of women.

19. MSE-Cluster Development Programme
Aims at sustainable growth of MSEs by addressing common issues , and capacity building of MSEs for common supportive action.
To create /upgrade infrastructural facilities in new or existing clusters, and to set up common facility centres in the clusters
Provides for soft interventions like training, exposure, tech upgradation, brand equity, business development etc. GoI grant of 75% subject to a max project cost of Rs 25 lakhs per cluster
Hard interventions like setting up CFC. GoI grant of 70% of project cost of 15 Cr. ( for SC/ST/Women cluster 90% grant)

20. Export promotion Training in Export Packaging
Management Development Programmes in Export procedures and Documentation
Seminars on WTO

21. National Manufacturing Competitiveness Programme ( NMCP) Schemes
Promoting use of Bar code
Establishment of Incubators
Promoting Lean Manufacture
Promoting QMS/QTT
Design Clinics
Technology & Quality Upgradation ( TEQUP)
Marketing & Tech. Upgradation
Promoting ICT among MSMEs

22. Promoting use of Bar code
Scheme aims at motivating MSEs to use Bar Code. Helps MSEs in better inventory control, easy market access, business development
Scheme provides reimbursement of 75% of One time fee and three years’ annual fee

23. Establishment of Business Incubators
Scheme provides financial assistance to established Institutions to set up Business Incubators for incubating new business ideas.
Rs 100 crore earmarked for developing 100 incubators. Each incubator to develop 10 new ideas

24. Promoting Lean Manufacture
Aims to create awareness among MSMEs about optimum utilization of resources, time, space etc leading to increased competitiveness
To be implement through a cluster based approach
MSMEs assisted in creation of SPV, implementation of Lean techniques

25. Improving productivity through use of Quality Management Standards & Quality Technology Tools
Aims at creating awareness among MSMEs on use of quality management standards for becoming globally competitive.
MSMEs can improve product quality, reduction in rejections, time saving etc using these tools.
MSME-DIs assist in creating awareness about, and in implementation of QMS/QTT

26. Intellectual Property Rights
Scheme aims to create awareness on the need for protecting intellectual properties by MSMEs.
Scheme provides financial assistance for ( by way of reimbursement) :
Domestic patent registration Rs0.25 lakhs
International patent registration – Rs lakhs
GI registration – Rs 1.00 lakh
Other assistance for conducting Awareness programmes (upto Rs 1 lakh), starting IPR Facilitation Centre ( Rs 65 lakhs) etc.

27. Design Clinic
Scheme aims at bringing Indian MSMEs and design experts on a common platform to enable MSMEs access expert advice and cost effective solutions in solving designing problems.
Helps MSMEs move up value chain from mere manufacturers to design and manufacture.
Fin. Asst. As a grant of 60% of total project cost upto Rs 9 lakhs for individual ( or not more than 3 MSMEs)
For a group of 4 or more MSMEs, grant is 60% of approved project cost, or Rs 15 lakhs, whichever is less.
NID Ahmadabad , IISC Bangalore and CSIR are nodal agencies for the scheme.

28. TEQUP – ( Technology & Quality Upgradation )
Scheme aims at sensitizing Indian MSMEs to adopt Energy Efficient technologies
Also aims at encouraging MSMEs to go in for product quality improvement through international and national certification.
Awareness camps for sensitizing MSMEs with expert organizations like BEE/TERI, UNIDO etc

29. TEQUP contd
GoI grant of 25% ( of approved cost as per DPR) for implementing Energy Efficient Technologies.
Reimbursement of 75% of application fee, license fee, product testing charges, inspection fee of Certification body to MSMEs for National certification ( upto Rs 1.5 lakhs) and International Certification ( Upto Rs 2 lakhs)

30. MATU - (Marketing and Technology Upgradation )
Assistance for participating in local exhibitions/trade fairs ( train fare, space rent ) upto max of Rs 30,000/ - reimbursed.
Assistance for adopting Good Governance Practices like Limited Liability Partnership ( LLP) etc.
Reimbursement for acquiring ISO ,ISO22000 and ISO27000 Certification

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