1. SCHEMES / PROGRAMMES MINISTRY OF MSME in Uttar Pradesh A PRESENTATION

2. Growth of MSEs in Uttar Pradesh
Year / Stat.
Growth rate (%)
No. Of units
28.98
Employment
26.67
Investment
(Rs. Cr.)
21858
23407
24852
47.34
Production
40513
46927
55153
117.26

3. IMPORTANT SCHEMES
Credit Guarantee Scheme
Credit Linked Capital Subsidy Scheme
ISO-9000/14001 /HACCP Assistance
Integrated Infrastructural Development
Micro and Small Enterprises Cluster Development Programme
Technology Development Centres

4. Credit Guarantee Fund Scheme for Micro and Small Enterprises
Launched on 30 August 2000 and became operational with effect from 1 January, 2001
Operated by the CGTMSE
Provides guarantees to MLIs for loans sanctioned without collateral and/or third party guarantee up to Rs. 50 lakh
Guarantee cover upto 80%

5. Proposals approved for U. P . under CGS
Proposals
Approved
1055
1109
1539
Loan
Amount
(In lakh)

6. Credit Linked Capital Subsidy Scheme (CLCSS)
Technology upgradation of MSEs
Nodal Agencies & PLIs--- SIDBI, NABARD, SBI, Canara Bank, BOB, PNB, BOI, Andhra Bank, SBBJ, , etc.
Provide 15% capital subsidy for improved technology --- loan up to Rs.100 lakh
Coverage :- 48 products/sub-sectors

7. 6600 229 180 4.11 UP Units Assisted (as on 31 March 2008) All India
Amount reimbursed
(Rs. Cr.)
6600
229
180
4.11
All India UP

8. ISO-9000/14001 /HACCP Scheme
Reimbursement to the extent of 75% of the expenditure (max. Rs.75000)
All MSEs that have filed EM eligible
All India :
Units Assisted : 17067
Amount Disbursed : Rs Cr.
No. Of beneficiaries in U P

9. Integrated Infrastructural Development (IID) Scheme
Provide developed sites with basic infrastructural facilities like power, water, drainage, roads, common facilities, etc
Project cost --Rs. 5 crore
Central Government provides 40 percent grant up to a maximum of Rs. 2 Cr.

10. Integrated Infrastructural Development (IID) Scheme
(Contd.)
106 projects sanctioned
Scheme also provides for upgradation of infrastructure in old industrial estates
Subsumed in MSE-CDP

11. IID Centres in Uttar Pradesh
No.
IID Centre
Implementing
Agency
Project
Cost
(in Cr.)
GOI
Grant
Status 1
Bhadohi
BIDA
5.94
2.00
Completed 2
Banther
(Unnao)
UPSIDC
5.50
1.83 3.
Kosi-Kalan
(Mathura)
7.00
1.62 4.
Etah
5.15
1.79 5
Kursi Rd.
(Barabanki)
5.06
1.22 6
Baghpat
5.48
1.30 7
Masoori
(Ghaziabad)
5.09
1.25 8
Ram Nagar
(Chandouli)
5.67
1.17
Under progress

12. Micro and Small enterprises Cluster Development Programme (MSE-CDP)
Includes diagnostic study, trust building, development of skills,
marketing & export, technology upgradation of enterprises,
formation of consortia, setting up CFCs, etc.
386 clusters taken up for development
Guidelines revised in March 2006 to
i) Raise the project cost to Rs 10 Cr. and GOI assistance
up to 80%
ii) Introduce PPP mode
iii) Enable State Governments/Agencies/SPVs to implement projects
iv) Enable assistance for infrastructure upgradation
Special measures for women-owned enterprises

13. Clusters Assisted Uttar Pradesh in the Last 2 Years
Implementing Agency
Clusters taken for soft interventions
Amount Sanctioned ( )
Clusters taken for diagnostic studies
Amount sanctioned ( )
Government of U.P 09
19.35 (Amount sanctioned in )
47 ( )
Under Process
MSME-DI Kanpur 06
9.40 05
2.50
MSME-DI Allahabad 02
6.28 -
MSME-DI Agra 03
1.50
MSME TDC Firizabad 01
2.25
NIESBUD 07
15.75
NIMSME 22
37.12
CIPET Lucknow
5.06

14. MSME Technology Developmentt Centres in U P
-Assistance to MSEs in product and process development Testing, calibration and common facility services Skill development training programmes
-Consultancy services
Name of Research Institute
Number of persons trained in
Number of units benefited
PPDC, Agra
913
1274
CDGI, Ferozabad
146
542
FFDC, Kannauj
2225
1015
PPDC, Meerut
665
506
CFTI Agra
3079
462

15. NATIONAL MANUFACTURING COMPETITIVENESS PROGRAMME (NMCP)
Formulation of NMCP announced in Budget, to support MSMEs
Its Role is to :
Ensure MSME Sector Grows at a Healthy Rate
Draft ‘National Strategy for Manufacturing’
Ten Schemes drawn up under NMCP at Rs. 956 crore
Implementation of Schemes to be in PPP Mode
Programme deals with Firm-Level Competitiveness, addressing issues of Competitiveness against Global Challenges

16. NATIONAL MANUFACTURING COMPETITIVENESS PROGRAMME - COMPONENTS
Full Name of the Scheme
Short Name
Marketing Support/Assistance to MSMEs BAR CODE
Support for Entrepreneurial and Managerial Development
of MSMEs INCUBATORS
Enabling manufacturing sector to be competitive through
quality management standard and quality technology tools QMS/QTT
National Campaign for Investment in Intellectual Property IPR
National Programme on Application on Lean Manufacturing LEAN
Mini Tool Rooms proposed to be set up by Ministry of MSME MTR
Promotion of ICT in Indian Manufacturing Sector ICT
Technology and Quality Upgradation support for MSMEs TECH UP
Design Clinic Scheme to bring design expertise to the
Manufacturing sector DESIGN
Marketing Assistance/SMEs and technology upgradation
activities - Ministry of SSI in co-operation with TIFAC/CSIR C WATCH

17. NMCP – New Activities (Over next 4 years)
Rs. Crore No
Name of the Component
4 years
GOI Share (RE)
Total Project Cost
GOI Share 1
BAR CODE
1.50
0.20 2
INCUBATORS
79.45
66.50
8.00 3
QMS / QTT
50.00
40.00
7.00 4
IPR
55.00 5
LEAN
280.80
246.00
20.00 6
MTR
210.00
135.00 7
ICT Opt. I *
Opt. II
207.00
104.00
6.00
100.00
60.00 8
TECH UP
93.50
78.60
10.00 9
DESIGN
41.00
5.00 10
C WATCH
53.00
26.50
4.00
TOTAL
973.25
745.10
88.20
* Option I is kept on hold with TPC Rs cr, GOI Share Rs cr and RE Rs cr.

18. STATUS OF NMCP SCHEMES i Bar Coding (1. 5) 0.1 0.20 ii
S. No.
Name of Scheme
(Cost of Scheme)
EFC
Clearance RE BE i
Bar Coding (1. 5)
Operational from 01/6/07
0.1
0.20 ii
Incubators (79.45) 
8.00
iii
QMS / QTT (50)
7.00 iv
IPR (55) v
Lean (280.80)
20.00 vi
MTR (210)
vii
ICT (100)
6.00
viii
TECH UP (93.50)
10.00 ix
Design (50)
5.00 x
C Watch (53)
4.00
Total
01.0
88.20
Rs. in Crore

19. TECHNOLOGY STRATEGY: Upcoming
BAR CODE
Existing MDA Scheme modified to popularize Bar Coding
Bar Coding an effective Tool to improve marketability
Reimbursement allowed :
One Time Registration Fee
75% of Annual Fee for 1st 3 years (Bar Code Certificate)
1400 SMEs to be Benefitted during 11th FY Plan

20. TECHNOLOGY STRATEGY: Upcoming
1 / 2
INCUBATORS
Object :
Assist Incubation of Innovative Ideas
Encourage Ideas to Become SMEs
Total Project cost – Rs cr
GOI Share – Rs cr
BE – Rs cr

21. TECHNOLOGY STRATEGY: Upcoming
2 / 2
INCUBATORS
100 BIs to be Located in R&D 25 p.a
Govt. Grant (Max. 85%) = Rs. 4 to 8 lakhs per Idea
Each BI to Assist 10 Ideas / Units
R&D Institutions and BIs to Suggest & Nurture
Can also be Dovetailed with other Schemes
Tie Up ‘Successes’ with VC / Angel Funds
Publicity & Proposals Essential for Success

22. Mini Tool Rooms Establishment of MTRs inPPP mode
Model 1: pvt enterprise led-viability gap funding –40%
Model 2: pvt enterprise +State Govt-viability gap funding-40%
Model 3: state govt. entity(land+bldg~6 cr) +Centre—9 cr
T.A.s----RFPs to issue
GoI allocation-Rs establish min. 15 MTRs

23. TECHNOLOGY STRATEGY: Upcoming QUALITY MGT. SYSTEMS / TOOLS
1 / 3
QUALITY MGT. SYSTEMS / TOOLS
( QMS / QTT )
MSME’s ISO Reimbursement Scheme Successful
QMS: ISO (Food), ISO (Health) etc.
QTT: Introduce proven Tools like 6-Sigma, 5-S, Kaizen, TPM, TQM etc.
Total Project cost – Rs cr (GoI = 80%)
BE – Rs cr
EFC has Cleared. Guidelines being Finalized

24. Schemes of NSIC Marketing Support
NSIC’s Single Point Registration Scheme (SPRS)
Technology Support
Training Programmes

25. MARKETING SUPPORT
1. Single Point Registration Scheme (SPRS) under Govt. Stores Purchase Programme
2. Consortia & Tender Marketing
3. Raw material Distribution
4. Exhibitions & Buyer Seller Meets

26. Consortia and Tender Marketing
1. NSIC submits bids on behalf of MSEs against the tenders of Government Deptts/PSUs.
2. Orders are farmed out to MSEs for execution.
3. Raw material assistance is granted to such units.
4. Bills are realized by NSIC for payment to supplier MSEs.
5. Part payment upto 70% is made to supplier MSEs before realization of bills

27. Raw Material Distribution
1. NSIC distributes basic raw materials like Aluminum, Copper and Iron & Steel to MSEs in relatively smaller quantities and at competitive rates
2. Tie ups with bulk Raw material manufactures e.g NALCO, BALCO, IOC, SAIL, RINL, Hindustan Zinc Ltd., Hindustan Copper Ltd etc.

28. Exhibitions & Buyer Seller Meets
1. To help MSEs to exhibit their products in national and International exhibitions
About 60 exhibitions organised/participated in a year.
Assiatance granted as per Government rules
i) Upto 60% concession on stall rental.
ii) Upto 75% reimbursement in fare
upto Rs.40,000/-.
iii) Freight reimbursement upto Rs.15,000/-
(Total Assistance not to exceed Rs.1.25 lac)

29. 4. Buyer Seller Meets organized between Govt. Deptts./ PSUs and MSEs.
5. Vendor development of Micro and Small Enterprises for Govt. Deptts. / PSUs.

30. TECHNOLOGY SUPPORT NSIC offers small units the following technology
support services through its Technical Services
Centres and Extension Centres:
Material equipment testing facilities through accredited laboratories
Training on Product design through CAD
Common facility support in machining through CNC.
Energy and environment services at selected centres
Testing facility for electrical equipments
Classroom and practical training for skill upgradation

31. TRAINING PROGRAMMES - Training Courses conducted by NSIC Technical Services Centres
Chennai
Footwear Manufacturing, Electrical Gadgets Maintenance, Motor Rewinding etc.
Howrah
Refrigeration & AC repair, Welding, Fitter, Automobile repairing, Material Testing etc.
Hyderabad
Electronic assembly line, PC Hardware Maintenance, High end software development courses,
New Delhi
CAD/CAM, CNC operations, Material testing, Draftsman, Machinist, Turner, S/W courses etc.
Rajkot
Energy Audit, Diesel Engine Testing, CNC milling, Office Automation etc.

32. Credit Support 1. Tie-ups with various banks for sanction of loans
(United Bank of India, UCO Bank, Oriental Bank of Commerce, Bank of Maharashtra, Central Bank of India, HSBC, AXIS Bank and YES Bank)
2. Help provided in preparation of credit proposals of MSEs for onward submission to banks for sanction of loan
3. Raw Material provided on easy credit terms against Bank Guarantee and advance against bills under tender marketing

33. Coverage under KVI sector ---UP
X Plan
50 regd instns of KVIC/B
15.06 lakh jobs (3.43 lakh in Khadi & lakh in VI)
Production :Rs cr
9062 projects assisted & lakh jobs created under REGP

34. KVI sector in UP ISEC –Subsidy –Rs 4.74 crore (06-07)
REGP: 1243 projects+ 31,000 jobs (07-Feb 08)
ISEC –Subsidy –Rs 4.74 crore (06-07)
Marketing Rebate –Rs crore (06-07)
PRODIP-57 projects (since 02)
SFURTI-13 clusters (4 Khadi+ 9 VI)

35. Merger of PMRY and REGP to form PMEGP
PMRY (introduced in 1993) extended to cover rural areas in No more exclusivity of PMRY. There is overlap with REGP.
Subsidy levels too low in PMRY – illustrated in separate slide/s.
Higher unit cost of projects permissible under REGP (Rs.25 lakh as against Rs.5 lakh under PMRY, that too from )
Many States have schemes with more attractive benefits/assistance/interventions
Some examples
Bangla Swanirbhar Karma Sansthan Prakalpa (West Bengal)
Sri Vajpayee Bankable Yojana (Gujarat)
Chief Minister’s Rozgar Yojana (Uttar Pradesh)
Recovery rates of Bank loans are much lower in PMRY (32-38%) as compared to REGP (68 to 88%) 35 35

36. Merger of PMRY and REGP to form PMEGP Salient Modifications
Scheme Design
‘apriori’ allocation of targets of margin money subsidy amongst marginalised sections of beneficiaries.
Higher subsidy to lowest cost range of projects/units to marginalised sections.
Earmarking higher proportion of projects for marginalised sections of beneficiaries.
Projects costing above Rs.5 lakh can be set up in urban areas. 36 36

37. Merger of PMRY and REGP to form PMEGP
Salient Modifications (…contd.)
Scheme Design (…contd.)
Subsidy as per cent of project cost to various categories of beneficiaries in manufacturing sector.
Category of Beneficiary
Existing
PMEGP
PMRY*
(max. amount)
REGP
Project cost ranges
Upto Rs.2 lakh
Above Rs.2 lakh and upto Rs.5 lakh
Above Rs.5 lakh and upto Rs.25 lakh
General
12500
25%
20%
10%
SC/ST
30%
40%
15%
OBC
*Rs.15000/- per entrepreneurs for NER, HP, UA and J&K. 37 37

38. Merger of PMRY and REGP to form PMEGP
Salient Modifications (…contd.)
Implementation & Monitoring
Involvement of Gram Panchayats in publicity and identification of beneficiaries at the grass root level.
Provision for availing the services of NGOs/Voluntary Organisations for improved targetting and selection of beneficiaries.
Updating of Project Profiles in consultation with senior officers of participating Banks.
Enlarging the scope of Entrepreneurship Development Programme.
Making the District Level Selection Committee collectively responsible for ensuring proper selection of beneficiaries. 38 38

39. Merger of PMRY and REGP to form PMEGP
Salient Modifications (…contd.)
Implementation & Monitoring
Putting in place a uniform verification and reporting process of units set up.
Aggressive publicity of CGTMSME amongst Banks, beneficiaries and State Government agencies.
Providing more attractive marketing linkages by tying up the units with exhibitions/fairs at District/Zonal/State/National level.
Working out MIS and tracking system of monitoring the application of beneficiaries, employment actually generated and performance of the units.
Monthly/Quarterly/Half Yearly Reviews of performance at operational/Ministry level, with participation by Planning Commission in the monitoring at Ministry level.
Targets to be allotted to States/DICs (like in PMRY) - 40%, and KVIC (as in REGP) – 60%. 39 39

40. KVIC - XI Plan New Schemes
Workshed Scheme for Khadi Artisans
Objectives:
To provide Worksheds to Khadi artisans for better work environment
38,000 khadi artisans proposed to be covered during the XI Plan.
A maximum assistance of Rs. 25,000 (per unit) is proposed
Total Plan Outlay - Rs. 127 crore
Government Grant - Rs. 95 crore
Rs. 25 crore earmarked in BE
Approval of Finance Ministry being obtained.
Guidelines are under preparation 40

41. KVIC - XI Plan New Schemes
Strengthening of infrastructure of existing weak Khadi Institutions and assistance for marketing infrastructure
Objectives:
To assist 200 weak khadi institutions and 30 marketing outlets for renovation and creating other marketing infrastructure
To provide higher levels of wages to artisans and upliftment of the Below Poverty Line (BPL) families in backward districts through Khadi activities
Total Plan Outlay - Rs crore
Government Grant – Rs crore
Token provision of Rs crore earmarked in BE
SFC Note circulated. 41

42. KVIC - XI Plan New Schemes
Scheme for Enhancing Productivity & Competitiveness of Khadi Industries and Artisans
Objective:
To assist 200 khadi institutions (including 50 new institutions managed by SC/ST) towards enhancing their productivity and competitiveness.
To improve the productivity of the sector through replacement of charkhas / looms, to add value to khadi products by encouraging conversion from fabric to readymade garments and to make the khadi industry competitive with more market driven, profitable production and higher wages to artisans
Total Plan Outlay - Rs. 90 crore
Government Grant – Rs crore
Rs. 10 crore earmarked in BE
EFC has approved and recommended the scheme. 42

43. THANK YOU