e l c o V P Sharma m - Franchise India · • Soft Interventions - Maximum limit for project cost would be Rs. 25.00 lakh per cluster. GoI grant for the soft interventions will be

W

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V P Sharma

Dy. Director (Chem)

MSME Development Institute,

10,Polo ground Industrial Estate,

Indore1MSME-DI, Indore

Head of officeAddl.Secretary&Development Commissioner

(MSME), Ministry of(Micro, Small and Medium Enterprises) Govt. of India

Nirman Bhawan, New Delhi

Web site : www.dcmsme.gov.in

2MSME-DI, Indore

Aims and Objectives

"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."

3MSME-DI, Indore

The main services rendered by DC (MSME)

office are

• Advising the Government in policy formulation for the promotion and development of MSMEs.

• Providing techno-economic and managerial consultancy, common facilities and extension services to MSMEs.

• Providing facilities for technology upgradation, modernisation, quality improvement and infrastructure.

4MSME-DI, Indore

Services Rendered

• Developing Human Resources through training and skill upgradation.

• Providing economic information services.

• Maintaining a close liaison with the Central Ministries, Planning Commission, State

• Governments, Financial Institutions and other Organizations concerned with development of MSMEs.

5MSME-DI, Indore

services rendered

contd….

• Evolving and coordinating Policies and

Programmes for development of MSMEs

as ancillaries to large industries.

6MSME-DI, Indore

Office of AS&DC (MSME) Network

• MSME-DI (Formerly SISI)

• Training Institutes

• Autonomous Bodies

7MSME-DI, Indore


Sr. NETWORK ABBREVIATION

1 Micro, Small & Medium Enterprises

Development Institute.

MSME-DI

2 Branch Micro, Small & Medium

Enterprises Development Institute

Br. MSME DI

3 Micro, Small & Medium Enterprise

Promotional Testing Institute.

MSMEPTI

4 Micro, Small & Medium Enterprise

Tool Room.

MSME-TR

5 Centre for Development of Glass

Industry.

CDGI

6 Hand Tool Design Development &

Training Centre.

HTDDTC

8MSME-DI, Indore


Sr. NETWORK ABBREVIATION


Testing Centre.

MSME (TC)


Testing Station.

MSME (TS)

9 Electronic Service & Training Centre. ESTC

10 Institute for Design, Electrical

Measuring Instruments.

IDEMI

11 Fragrance & Flavour Development

Centre.

FFDC

12 Centre for Footwear Training

Institute.

CFTI

9MSME-DI, Indore

Services of AS&DC (MSME) Network

MSME provides many services through its network for Micro, small scale& Medium industries.

Specialized services of Marketing, Export promotion and International co-operation are also available through a series of schemes and incentives.

10MSME-DI, Indore

Services of AS&DC (MSME) Network

• Testing

• Technical

• Extension Services

• Training & Manpower Development

• Technology Trends and Trade Reports

11MSME-DI, Indore

Schemes of DC-MSME

12MSME-DI, Indore

MSE Cluster Development

Programme

.

13MSME-DI, Indore

WHAT IS CLUSTER?

• Concentration of units producing same/similar products (or engaged in same line of industrial activity) located within a defined geographical area, such as Mohalla, Taluka or Tehsil;

• Combination of villages/blocks and even smaller districts may also fall under the geographical extent of cluster;

• Principal characteristics: commonality of production process, quality control, testing, energy conservation & application of technology;

• Common challenges, bottlenecks and opportunities;

14MSME-DI, Indore

FIRM FIRM

FIRM

FIRM FIRM

Commercial service providers

(Designer, Testing Laboratory, Transporter,

Financier, Import Agents etc.)

Public and Private service institutions

Policy

Environment

International

Environment

Selling

Agents

Direct

Customer

Machinery

supplier

Raw

Material

Supplier

15MSME-DI, Indore

OBJECTIVES

• Cluster approach is key strategy for enhancing

productivity/competitiveness of small

enterprises;

• Facilitate economies of scale in terms of

deployment of resources;

• For integrated and focused development of

micro and small enterprises;

16MSME-DI, Indore

Features of the Cluster

• Clusters have common challenges and

opportunities.

• Similar level of technology and

structures.

• Similarity or complementarily in the

methods of production, quality control

and testing, energy consumption,

pollution control etc.17MSME-DI, Indore

SCOPE OF THE SCHEME

• Diagnostic Study– all aspects to suggest emphasis;

• Forming Associations - Trust building & Developing Identity;

• Workshops, Seminars, Awareness Campaign, Training and Study visits;

• Common Purchase, lower Costs;

• Re-sourcing of better technology ;

• Technology transfer through training/ demonstrations;

18MSME-DI, Indore

SCOPE OF THE SCHEME

• Apportion different aspects of production among units – specialization

• Setting up of Common Facility Centre (CFC), Mini Tool Room, Testing Lab, Design Centre, Common Raw Material Bank

• Common/complementary sales and branding

• Easier Credit – use of Micro Finance/Credit Guarantee

• Handholding support in general

19MSME-DI, Indore

SELECTION OF CLUSTER

• Importance of the Cluster(s) in terms of number of units, employment, production, export etc;

• Existence of critical gaps;

• Viability of the cluster;

• Vibrancy of local Industry Association;

• Social and Environmental considerations;

• Preference for clusters having sizeable presence of women entrepreneurs.

20MSME-DI, Indore

SEQUENCING OF CLUSTER (CDP)

• Selection of Cluster(s);

• Selection of Cluster Development Executives (CDE) /Cluster Development Agency (CDA)/Local Organiser (LO);

• Trust Building;

• Diagnostic Study;

• Preparation of Action Plan;

• Approval of Budget;

• Implementation of Action Plan;

• Monitoring and Evaluation;

• Handing over and Exit;

21MSME-DI, Indore

MSE-CDP Methodology

• Selection of Clusters

• Size

• Scope for growth,

• Cluster’s importance,

• Imminent threats etc.

• Diagnostic Study

• Study about its constraints,

• Potential,

• Local linkages and support mechanism.

22MSME-DI, Indore

Trust Building

• Collective and collaborative efforts.

• Preparing a realistic action plan for

the cluster.

• Support from clients, service

providers and support agencies.

23MSME-DI, Indore

Action Plan

It is a road map that will help to develop

and foster lasting relationships among the

cluster actors while at the same time

delivering visible results.

It is based on the collective vision of the

cluster. Identifying the suitable

intervention and their sequencing are

important.

24MSME-DI, Indore

Implementation

• The cluster actors interact with one

another and conduct their business.

• The responsibility for their

implementation of various activities is

progressively shifted to the private

sector with support drawn from local

institutions.

25MSME-DI, Indore

Monitoring & Evaluation

Quantifiable outputs as a result of

implementation are monitored and

evaluated.

26MSME-DI, Indore

LEVELS OF IMPLEMENTATION

• 3 Level of Intervention :

• Mentor (Technical Institutions or MSMEs or Expert/ Consultants or even Big Buyers) who advises and provide handholding support ;

• CDE (Cluster Development Executive) who actually executes and monitors all interventions – can be DIC- Officer, MSME-Officer, Retired Expert or even Hired Person ;

• NDA (Network Development Agent) or Local Organiser (LO)–Local person from cluster;

• CDE essential, Mentor & NDA/LO optional;

27MSME-DI, Indore

IMPLEMENTING AGENCIES

• State Govt’s (DICs, other Autonomous Bodies); Central Govt (MSME-DI’s etc.) or Others (National and International Institutions/ Society / NGO);

• In case the implementing agency is not the State Government or its organization, the agency will also need to necessarily come through the State Government;

• For select interventions, Business Development Service (BDS) providers can be engaged (for identifying technology gaps, developing markets and export linkages);

28MSME-DI, Indore

Implementation of the CDP

• Cluster projects are implemented by

Special Purpose Vehicles (SPV)

consisting of the actual/ likely cluster

beneficiaries/ enterprises organized in

any legally recognition, like co-

operative society, registered society,

trust, company etc.

29MSME-DI, Indore

Main activies in cluster Programme

• In cluster Programme there are following two main activities.

• Soft activity : This includes interventions for soft activities viz capacity building, market development activities, management development and technology up gradation.

• Hard Activity : This includes intervention for hard activities viz. Establishment of common facility center (CFCs) etc.

30MSME-DI, Indore

Priority for Special categories

• Cluster should have suitable presence of Women entrepreneur

• Entrepreneur belongs to SC/ ST/ OBC/ Minorities etc.

• Micro enterprises.

• Special benefit for micro & Village enterprises ---

• Clusters of micro and village enterprises have the provision of enhancing financial support by 10%

31MSME-DI, Indore

Duration for completion of cluster project

• As per existing guidelines project duration for cluster is 18 months.

• Role of CDE in cluster scheme—

• CDE- cluster Development Executive plays very important role in the project. He is the officer from the Govt. agencies and one of the member of SPV.

• He conceptualizes the overall developmental strategy of the cluster, co-ordinates the activities and initiates implementation.

32MSME-DI, Indore

Integrated Infrastructural Devlopment(IID)

Scheme (Subsumed in MSE-CDP)

• To Provide Developed Sites With Basic Infrastructural Facilities Like Power, Telecommunication, Roads, Water,drainage,& Pollution Control Facilities,, Banks, Raw Material Storage, Marketing Outlets, Common Facilities Services,& Technological Backup Services Etc.

• The GOI grant will be 60 % of the cost of project of Rs 10 Cr.(excluding cost of land). Fund will be released on reimbursement basis or on matching share basis.

33MSME-DI, Indore

Breakup of Fund

• 1. Land Development & Other Overhead

infrastructure – Rs 7.50 Cr.

• 2. Administrative & Other services

complex – Rs 1.50 Cr.

• 3.Effluent treatment facilities – Rs 0.80Cr.

• 4. Contingencies and pre-operative

expenses – 0.20 Cr.

34MSME-DI, Indore

FUNDING PATTERN:GENERAL

• Contribution of the Ministry of MSME

(GOI) shall not exceed 60% of the total

project cost subject to a ceiling of Rs.10

crore per project;

• In all cases (where required), the entire

cost of land and building shall be met by

the SPV/State Government concerned.

35MSME-DI, Indore

Financial support from GOI

under MSE-CDP scheme

• Contribution of Ministry of MSME (Govt. of India) will not exceed 80% of the total project cost. Subject to a ceiling of Rs. 15 crores per project including Rs. 25 lakh for soft activities under soft interventions.

• Contribution from beneficiaries in cluster scheme

• Scheme expects at least 10% contribution from stake holders/ beneficiaries of the cluster projects.

36MSME-DI, Indore

Funds

• Go I grant of maximum Rs. 2.50 lakh will be provided for preparation of DSR for one cluster. For the field organizations of the Ministry of MSME, this financial support will be Rs 1.00 lakh

• Soft Interventions - Maximum limit for project cost would be Rs. 25.00 lakh per cluster. GoI grant for the soft interventions will be 75% of the sanctioned amount of the project cost.

• Detailed Project Report (DPR): A GoI grant of maximum Rs. 5.00 lakh will be provided for preparation of a technical feasible and financially viable project.

37MSME-DI, Indore

Funds• Hard Interventions (setting up of CFCs):

• The GoI grant will be restricted to 70% of the cost of

project of maximum Rs 15.00 crore. GoI grant will be

90% for CFCs in NE & Hill States, Clusters with more

than 50% (a) micro/ village (b)women owned (c) SC/ST

units.

• The cost of project includes cost of Land (subject to

max. of 25% of Project Cost), building, pre-operative

expenses, preliminary expenses, machinery &

equipment, miscellaneous fixed assets, support

infrastructure such as water supply, electricity and

margin money for working capital.

38MSME-DI, Indore

PROCEDURE FOR APPROVAL

• Development Commissioner (MSME) for project costing less than 1 crore.

• Steering Committee under the Chairmanship of Secretary (MSME) for projects costing Rs.1 crore and above.

• Disbursement of funds to be made to SPV/Implementing Agency, under intimation to the State Government.

• Internal Finance scrutinizes and gives final clearance.

39MSME-DI, Indore

Ultimate result due to cluster projects

• Increased income, investment, capacity utilization, cost

deduction, community empowerment, energy conservation,

pollution control.

• Infrastructure creation and linkage through govt. scheme.

• Enhance collective economic efficiency

• Developing culture of co-operation and team work

• Strengthened local governance strength.

• Creation of competitive market.

40MSME-DI, Indore

Opportunities for Banks

• Common procurement of Raw Material

• Common Facility Centers

• Technology Up gradation under CLCSS

• Mutual Credit Guarantee Funds

• Integrated Infrastructure Up gradation Scheme

• Industrial parks

• Credit required for Export, Term Loan etc.

41MSME-DI, Indore

Proposals forwarded to Head Quarter

(Organized Sector)• Agriculture Implements Cluster – Khurai (Sagar)

• Offset Printing & Packaging Cluster - Indore

• Gur Cluster – Narsinghpur

• Dal Cluster - Katni

• Readymade Garments Cluster (Ladies) - Jabalpur

• Engineering Cluster - Mandideep (Raisen)

• Timber Merchant & Wooden Furniture Cluster - Jabalpur

• Handloom Cluster - Saunsar (Chhindwara)

• Agarbatti Cluster - Ujjain

• Cotton Seed Oil & Ginning Cluster - Khargone

• Cotton Seed Oil & Ginning Cluster - Khandwa

• Bell Metal Cluster - Tikamgarh

• Power loom Cluster - Ujjain

• Marble Cluster – Katni

42MSME-DI, Indore

Activity undertaken by MSME-DI Indore

• Proposals forwarded to Head Quarter (un-organized Sector) – 12

• Leather Products Cluster - Dewas

• Wooden furniture & Handicrafts Cluster-Chandrapur, Distt . Chhatrapur

• Gazak Cluster – Morena

• Gud Cluster- Narsinghpur, Gadarwara & Kareli

• Two Wheeler Repairing Workshop cluster- Indore

• Weavers cluster - Burhanpur

43MSME-DI, Indore


• Ratlami Sev Cluster- Ratlam

• Shoe Manufacturing Cluster- Indore

• Fast Food / Refreshment Cluster- Indore

• Artificial Jewelry & Glass Bead items Cluster-Kaymore, Distt Katni

• Stone Art Cluster- Katni

• Shellc/ lakh item manufacturing cluster- Indore

44MSME-DI, Indore


• On going cluster – 05

• Plastic Packing Cluster Indore

• Transformer & Allied Products Gwalior

• Power loom Cluster Jabalpur

• Egg. Cluster Govindpura

• Stone Cluster , Gwalior

45MSME-DI, Indore


• Identified Cluster for the year 2011-12 – 03.

• Power Loom Cluster – Burhanpur

• Plastic Packaging Cluster- Ujjain

• Corrugated Box Packaging Cluster- Indore.

46MSME-DI, Indore

MSE-CDP (Proposed for 2013-14)

Coordination of DSR-

• Plastic Packaging Cluster Ujjain

• Lime Cluster Katni

• Confectionary Cluster Gwalior

• Poha Cluster Ujjain

• Wooden Furniture Cluster Chhatrapur

Soft Intervention

• Plastic Packaging Cluster Indore

• Transformer Allied Cluster Gwalior

• Stone Cluster Gwalior

• Engineer Cluster Govindpura, Bhopal

47MSME-DI, Indore

MSE-CDP (Proposed for 2013-14)

• Hard Intervention

• Rechargeable Torch Cluster, Indore

• Pharma Cluster, Indore

• Power loom Cluster, Jabalpur

• Power loom Cluster, Burhanpur

48MSME-DI, Indore

NATIONAL MANUFACTURING

COMPETITIVENESS

PROGRAMME

NMCP

49MSME-DI, Indore

NMCP - COMPONENTS

Full Name of the Scheme Short Name

Marketing Support/Assistance to MSMEs BAR CODE

Support for Entrepreneurial and Managerial Dev INCUBATORS

Enabling Manufacturing Sector to be competitive thru Quality Mgt.

Standard & Quality Tech. Tools QMS/QTT

National Campaign for Investment in Intellectual Property IPR

National Programme on Application on Lean Mnf. LEAN

Mini Tool Rooms proposed to be set up by Min. of MSME MTR

Design Clinic Scheme for design expertise to Mnf. sector DESIGN

Marketing Assistance and Technology Upgradation MATU

Technology & Quality Upgradation Support TECH UP

Promotion of ICT in Indian Manufacturing Sector ICT

50MSME-DI, Indore

NMCP - COMPONENTS

• 1. BAR CODE

• Bar Coding an effective Tool to improve marketability

• Reimbursement allowed:

• 75% of fee (Rs 25,000 to 35,000) paid to GS1 India for one time registration

• and annual recurring fees (Rs 6,000) i.e, Rs 4,500 per year for first three years. Valid upto 2012.

51MSME-DI, Indore

NMCP - COMPONENTS2. INCUBATORS (E & MD)

Object :

Assist Incubation of Innovative Ideas

Encourage Ideas to Become SMEs

Financial Assistance to BI Rs 4-8 Lakhs per idea/unit

Nurtured by them limited to Break-up Rs 62.5 Lakhs

(a) Upgradation of infrastructure Rs. 2.50 lakh

(b) Orientation/Training Rs. 1.28 lakh

(c) Administrative Expenses Rs. 0.22 lakh

Scheme is under PPP mode (15% to 25% to be contributed by MSE)

IMPLEMENTING AGENCIES

(i) IITs (ii) NITs (iii) Engineering Colleges

(iv) Technology Development Centres, Tool Rooms etc.

52MSME-DI, Indore

NMCP - COMPONENTS

Enabling Manufacturing Sector to be competitive through Quality Management Standard & Quality Tech. Tools (QMS/QTT)

Conducting 4 Workshops of 2 days duration at Metros - 16 Lakhs

Identify list of 80 trainers who will undergo the ‘Train-the-Trainer course – 2 Lakhs/course

Developing master course material training kit for training of the trainers by hiring of consultants/International experts, fee of QCI (15%) & contingency charges (5%) - Rs. 85 lakhs

5 Days Training Courses for ITIs/ Polytechnics at 1,800 Institutions -Rs. 216 lakhs

53MSME-DI, Indore

NMCP - COMPONENTS

Tracking and sourcing the best practices from the World class training institutes in the field of QMS/QTT by sending delegations consisting of faculty members from ITIs, other technical institutions and industry associations active in this field, etc. It includes International travels,stay expenses and faculty expenses (which will be incurred towards holding interactive meetings with experts of the country visited - Rs. 100 lakh

National level workshop at Delhi (Rs.6 lakh It includes Rs. 5.0 lakh for the workshop and Rs. 1.0 lakh on documentation) Total Rs.= 425 lakh/Yr

54MSME-DI, Indore

NMCP - COMPONENTS

4 Building Awareness on Intellectual Property Rights (IPR) for MSME

(a) Awareness/Sensitisation Programmes on IPR - Rs 1.00Lakh

(b) Pilot Studies for Selected Clusters/ Groups of Industries - Rs 2.50 Lakh

(c) Interactive Seminars/Workshops - Rs 2.00 Lakh

(d) Specialized Training

(i) Short term (ST) - Rs 6.00 Lakh

(ii) Long term (LT) - Rs 45.00 Lakh

55MSME-DI, Indore

NMCP - COMPONENTS

(e) Assistance for Grant on Patent/GI Registration

(i)Domestic Patent - Rs 0.25 Lakhs

(ii) Foreign Patent - Rs 2.00 Lakhs

(iii) GI Registration - Rs 1.00 Lakhs

(f) Setting up of IP Facilitation Centre for MSME - Rs 65.0Lakhs

(g) Interaction with International agencies

(i) Domestic Intervention - Rs 5.00 Lakhs

(ii) International Exchange Programme - Rs 7.50 Lakhs

56MSME-DI, Indore

NMCP - COMPONENTS

5 . Lean Manufacturing Competitiveness Scheme for MSME

1. 5S System

2. Visual Control

3. Standard Operating Procedures (SOPs)

4. Just in Time

5. (JIT):KANBAN System

6. Cellular Layout

7. Value Stream Mapping

8. Poka Yoke or Mistake Proofing

9. Single Minutes Exchange of Dies or Quick Changeover

10. TPM (Total Productive Maintenance)

11. Kaizen Blitz or Rapid Improvement Process

57MSME-DI, Indore

NMCP - COMPONENTS

• A financial support by the Government of India upto a maximum of 80% of the Consultant fees for each Mini Cluster will be provided.

• Remaining 20% is to be brone by the beneficiaries MSME units. Based on the eligibility criterion, NMIU would prepare a list of empanelled LMCs. Units/MCs would be free to choose the LMC from such a list.

– Mini Cluster of SMEs

– A group of 10 or so (+/- 2 units)

– Scheme for at least 2 year.

– For SPV

– A trust/ society/ pvt. Ltd. Company or similar entity to be formed.

58MSME-DI, Indore

NMCP - COMPONENTS

• Mini Tool Rooms proposed to be set up by Ministry of MSME (MTR)

• Model-I

• (Central PPP Model)

• Private Partner( individual, company, association,NGO/society).Agencies

• Model-II

• (State PSPVs set up by States in partnership with private partners.)

• ( Minimum Share of State Govt. 26% PP Model)

• Model-III

• (Central State Model)

• State Government/ State agency other than NGOs. The Project company may be legal entity formed by any of the following:

• i. Individual enterprises, ii. Consortium of enterprises, iii. Industry Associations

59MSME-DI, Indore

NMCP - COMPONENTS

Financial Assistance:

90% of the cost of in machinery, restricted to Rs. 9 crore.

The remaining resources-Banks /Financial

Institutions and other sources.75% of the cost of the

machinery, restricted to Rs. 7.50 crore, can also be

sanctioned for up gradation of An existing State Tool

Room.

The Remaining cost of machinery, land &

building, recurring cost, any other cost etc will be

borne by the State Government/State, Government

Agency.60MSME-DI, Indore

NMCP - COMPONENTS

7. Design Clinic Scheme for design expertise to MSMEs

Manufacturing sector (DESIGN)

Financial Assistance :-

(1) GoI contribution, not exceeding Rs 60,000 for the conduct

of each seminar.

(2) The GoI contribution for the conduct of a workshop

(including preparation of the Design Need Assessment

Survey report) will be to the extent of 75 % or Rs 3.00 Lakhs

Max.

(3) Design project Funding for professionals-60% of the

total approved project cost or Rs. 9.0 Lakh Max.

61MSME-DI, Indore

NMCP - COMPONENTS

8. Marketing Assistance & Technology Up-gradation Scheme in

MSMEs.

Technology Upgradation in Packaging.

(a) Awareness programmes on new packaging concepts &

Technologies -- Rs. 0.50 lakh (GoI:unit::80:20)

(b) Cluster based studies on packaging status & needs for

upgradation --Rs. 10 lakhs per study (GoI:unit::80:20)

(c) Unit based interventions for specific packaging

requirements in 20 clusters (approx. 20 units per cluster)

- Rs. 9.0 lakhs for a group of 10 units (GoI:unit::80:20)

Actual cost or Rs. 9.0 Lakh Max.

62MSME-DI, Indore

NMCP - COMPONENTS

(ii) Skill Upgradation/Development for modern marketing

techniques.

Designing and conducting specific need based skill

Development programmes for clusters for adopting

modern marketing techniques--Rs. 6 lakhs per cluster

(GoI:unit::80:20)

(iii) Competition Studies.

Detailed studies on threatened product groups/clusters

bringing out reasons for Invasion by outside Products

affecting l ocal production and ways & methods to counter

these--Rs. 8 lakhs per study (GoI:unit::80:20)

63MSME-DI, Indore

NMCP - COMPONENTS

(iv) Special component for North-Eastern Region.

Exposure to national exhibitions, participation, displaying products &

sponsoring entrepreneurs from MSMEs of NER to selected exhibitions--Rs. 6

lakhs per exhibition (GoI:unit::80:20)

(v) New markets through State/District levellocaExhibitions /Trade fairs.

State and District level exhibitions being organized by State/District

Authorities/Associations.

(a) Pavillion/stall/space charges upto 6.0 sq. mtr. –

(b) To and fro actual fare by shortest distance/direct train (limited to AC II tier

class) from the nearest railway station/bus fare to the place of exhibition for

one person. (50% cost will be reimbursed by GoI. For SC/ST/Women/Physically

Handicapped entrepreneurs the assistance will be up to 80%)

(c)The total reimbursement will be max. Rs. 30,000/- per unit for the

SC/ST/Women / Physically Handicapped entrepreneurs, while for the other

units the max. limit will be Rs. 20,000/- per unit.64MSME-DI, Indore

NMCP - COMPONENTS

(vi) Corporate Governance Practices.

To encourage MSMEs to adopt good corporate governance practices

--Rs. 0.9 lakh per unit (GoI:unit::50:50)

Marketing Hubs.

Financial Assistance :-

(a) For upgradation/ renovation/ modification in the existing

facilities/ space (furnishing, fixtures,modern amenities, air

conditioning, false ceiling, floor tiles etc.) to convert it into Marketing

hub - Rs. 30 lakh per hub (Only GoI contribution, no private

contribution).

For Furniture, Computers, Internet and Communication equipments.

Rs. 5 lakh per hub.(Only GoI contribution, no private contribution).

(c) Recurring operating expenditure. Rs. 15 lakhs per hub for two

years. (GoI contribution 80% and private units 20%). The recurring

charges will be towards the cost incurred on arranging expo-events/

exhibition for the purpose of B2B andB2Cinteraction. 65MSME-DI, Indore

NMCP - COMPONENTS

Reimbursement to ISO 18000/ ISO22000 / ISO 27000 certification

Financial Assistance :

75% of the expenditure subject to a maximum of Rs 1.00 lakh.

(ix) Financial Assistance on Bar-Code 75% of fees paid to GS1 India for one time registration w.e.f. 1st January, 2002 and annual recurring fees w.e.f. 1st June, 2007 for first three years.

Valid upto 2012

66MSME-DI, Indore

NMCP - COMPONENTS

9 Technology and Quality Upgradation Support to MSMEs

Financial Assistance:-

(1) Towards organizing the awareness

programmes, the Government of India will provide financial support to the extent of 75% of the actual expenditure, subject to max Rs. 75,000/- per programme

(2) cluster level energy audits and model DPRs (for three selected enterprises) will be Rs. 9.0 lakh per cluster.

67MSME-DI, Indore

NMCP - COMPONENTS

MAJOR ACTIVITIES UNDER THE SCHEME

The above objectives of the Scheme will be

achieved through the following major activities:

(i) Capacity Building of MSME Clusters for Energy

Efficiency/Clean Development Interventions and

other technologies mandated as per the global

standards.

(ii) Implementation of Energy Efficient Technologies

(EET) in MSME units.

(iii) Setting up of Carbon Credit Aggregation Centres

(CCA) for introducing and popularising68MSME-DI, Indore

NMCP - COMPONENTSClean development mechanism(CDM) in MSME clusters.

(iv) Encouraging MSMEs to acquire product certification/

licences from National/Internationalbodies and adopt other

technologies mandated as per the global standards.

MSME manufacturing units will be provided subsidy to the

extent of 75% of the actual expenditure, towards licensing of

product to National/ International Standards.

The maximum GoI assistance allowed per MSME is Rs.1.5 lakh

(Average Rs. 0.75 lakh) for obtaining product licensing/Marking

to National Standards and Rs. 2.0 lakh (Average Rs. 1.50 lakh)

for obtaining product licensing/Marking to International

standards.

(v) Study of Impact of the scheme, administrative and other

miscellaneous items

69MSME-DI, Indore

NMCP - COMPONENTS

10. Promotion of ICT in Indian manufacturing Sector (ICT)

The scheme will facilitate:

• In extending the support of basic ICT infrastructure to MSMEs;

• In sensitizing MSMEs with potential benefits of ICT tools and

promote their adoption in the entire chain of business from

procurement of raw material to after sales & service;

• Encouragement of indigenous development of sector/cluster

specific software solutions on need basis;

• Standardization of the business processes / activities across

the enterprise through ICT application;

70MSME-DI, Indore

NMCP - COMPONENTS

creation of knowledge networks amidst the clusters

across the country to facilitate forward and

backward linkages;

awareness towards the adoption of business

software such as ERPs, eprocurement, e-marketing

etc;

continuous HRD development in ICT related

applications; and • incentivising MSMEs and

Software partners for long term partnership in ICT

adoption

71MSME-DI, Indore

SKILL DEVELOPMENT

PROGRAMME

SDP

72MSME-DI, Indore

Skill Development Programme

• The Ministry of Micro, Small and Medium Enterprises (M/o MSME)

Promotes :

• The Development Of Micro And Small Enterprises In The Country

With The Objective Of :

• Creating Self-employment Opportunities And Upgrading The

Relevant Skills Of Existing And Potential Entrepreneurs

In Order To Promote :

• Establishment Of New Enterprises and Creation Of New Entrepreneurs,

• M/o MSME has been Implementing Various Schemes and

Programmes.

73MSME-DI, Indore

SKILL DEVELOPMENT PROGRAMME

Entrepreneurship Development is One Of The Key Elements For Promotion Of Micro and Small Enterprises, particularly, The First Generation Entrepreneurs.

Entrepreneurship, and Resultant Creation Of Employment and Wealth, is a Major Mean For Inclusive Development.

The Entrepreneurship Development has been One Of The Priorities in Country.

74MSME-DI, Indore


The Task Of

Entrepreneurship Development Lies Largely With This Office.

The Entrepreneurship Development Programmes (EDPs)

Are Conducted With Focus On

Entrepreneurial Development Coupled With Specific Skills

Relating To Trades

Like Electronics, Electrical, Food Processing, Etc,

Which Enables The Trainees

To Start Their Own Ventures

75MSME-DI, Indore


The Programmes Covered Include The Following

1. Industrial Motivation Campaigns (IMCs)

2. Entrepreneurship Development Programmes (EDPs)

3 Entrepreneurship Skill Development Programme (ESDPs)

4. Management Development Programmes (MDPs)

5. Business Skill Development Programmes (BSDPs)

76MSME-DI, Indore


1.INDUSTRIAL MOTIVATION CAMPAIGNS

Industrial Motivation Campaigns are organized to identify and

motivate traditional / non-traditional entrepreneurs having

potential for setting up MSEs so as to lead them towards self-

employment.

The Programme Outlines are as Follows -

1. DURATION : One day.

2. INTAKE CAPACITY : No limit

3. TRAINING FEE : No Fee

4. AGE OF PARTICIPANTS:18 Years and above

5. QUALIFICATION: As decided by the Director of the institute.

77MSME-DI, Indore


2. ENTREPRENEURSHIP DEVELOPMENT PROGRAMMES (EDP)

Entrepreneurship Development Programmes are

being Organized to Nurture the Talent of Youth by

enlightening them on various aspects of industrial

activity required for setting up MSEs.

These EDPs are generally conducted in ITIs,

Polytechnics and other technical institutions, where

skill is available to motivate them towards self-

employment.

78MSME-DI, Indore


(EDP) The Programme Outlines are as Follows -

1. DURATION: 2 weeks

2. MINIMUM INTAKE CAPACITY: 20

3. TRAINING FEE (Minimum):

(1) Rs.100/-for general candidates

(2) No fees for SC / ST and 50% fee from women and

physically hadicapped

4. AGE OF PARTICIPANTS:

18 Years and above

5. QUALIFICATION:

As decided by the Director of the institute.79MSME-DI, Indore

SKILL DEVELOPMENT PROGRAMME3. ENTREPRENEURSHIP SKILL DEVELOPMENT PROGRAMMES

(ESDP)

Comprehensive training programmes are organized to upgrade

skills of prospective entrepreneurs, existing workforce and also

develop skills of new workers and technicians of MSEs by

organising various technical cum skill development training

programmes with the basic objective of providing training for

their skill upgradation and to equip them with better and

improved technological skills of production.

The specific tailor made programmes for the skill development

of socially disadvantaged group (OBC, SC, ST, Minorities and

women) 80MSME-DI, Indore


(ESDP) The Programme Outlines are as Follows -

1. AGENCY: These programmes are conducted by MSME-DIs.

2. DURATION: 6 weeks

3. MINIMUM INTAKE: 20 nos. in each Programme

4. AGE OF PARTICIPANTS : 18 Years and above

5. QUALIFICATION: As decided by the Director of the institute

6. TRAINING FEE:

(a) Rs. 200/- for general candidates,

(b) No fees for SC / ST and 50% fee from women and Physically

Handicapped

81MSME-DI, Indore


4. MANAGEMENT DEVELOPMENT PROGRAMME (MDP)

The objective of imparting training on management

practice system is to improve their decision-making

capabilities resulting in higher productivity and

profitability of existing & potential entrepreneurs and

developing new enterprises. Inputs on a variety of topics

of managerial functions are provided to the participants

by experts, which aims at dissemination of knowledge of

scientific/modern management techniques /practices

82MSME-DI, Indore


1. (MDP) AGENCY : To be conducted by MSME- DIs

2. DURATION : One Week for full time and twoweeks for part time.

3. MINIMUM INTAKE : 20 nos.

4. TRAINING FEE : Rs.400/- for general candidates,

No fees for SC / ST and 50% fee from women and Physically Handicapped

5. AGE OF PARTICIPANTS : 18 Years and above

6. QUALIFICATION : As decided by the Director of the Institute.

83MSME-DI, Indore


4. BUSINESS SKILL DEVELOPMENT PROGRAMME (BSDP)

This programmes has been devised to encourage educated youth

(students) basically the final year and pre-final year students of business

schools, Technical Institutes to start self-employment ventures of Micro or

Small Enterprises and thus instrumental in employment generation.

Motivation and Training are the two crucial inputs for promoting

entrepreneurship and sustaining the growth of existing small scale

industries.

MSME-DIs will be in close contact With Business Schools, Engineering

Colleges and some high level Polytechnics in their jurisdiction who are

willing to collaborate with MSME -DIs for organizing such programmes.

Director, MSME-DIs will select Business/ Engineering Colleges etc. There

may be certain MSME-DIs in whose jurisdiction an Engineering College

may not be functioning. In such cases, a Polytechnic may be considered.

Grade 'B' Business Schools recognized be AICTE cab also be considered

the Director, MSME-DIs for organizing the programme.

84MSME-DI, Indore


BSDP Programme Outlines are as Follows:

1. AGENCY: MSME-DIs collaboration with select

Business/ Technical Institute will conduct the programme.

2. DURATION: 22 working days

3. INTAKE CAPACITY: 25 to 30 nos.

4. Participants: Final and pre-final year student of

Business or Technical Institute or Polytechnics in the

areas Where Engineering college are not there.

85MSME-DI, Indore

OTHER MSME SCHEMES

86MSME-DI, Indore

OTHER MSME SCHEMES1. Capacity Building

I. Machinery and equipment needed by the Associations for upgrading their

capacity (both qualitatively and quantitatively) in phase I & phase II. And to

collect and interpret data relating to changes in the market scenario, Sub-

Contracting Exchanges, Testing Laboratories, etc shall be eligible to receive

financial assistance.

BENEFICIARIES: MSEs Industry Association

BENEFITS/FINANCIAL ASSISTANCE /PROCEDURE

Phase I

• Computer and its peripherals including software - Rs 4.0 Lakhs

• Furniture and Office Equipments, e.g. fax etc - Rs 1.5 Lakhs

• Photocopier Machine and its Accessories - Rs 2.0 Lakhs

Phase II

• Consumables per annum - Rs1.0 Lakh

• Training of the staff - Rs 0.5 Lakh

• Expenses on Travel etc - Rs 0.5 Lakh

• Contingent & other office expenses - Rs 0.5 Lakh (GoI:Ass.;50:50)

87MSME-DI, Indore

OTHER MSME SCHEMES

1. Capacity Building

II. Seminars/Symposiums/Workshops

BENEFICIARIES: MSEs Industry Association

BENEFITS/FINANCIAL ASSISTANCE/PROCEDURE:

• Maximum of Rs.2 lakh would be provided to National Level MSE

Associations and Rs.1 lakh to

• Regional/State/Local Level MSE Associations

88MSME-DI, Indore

OTHER MSME SCHEMES

2. CLCSS

BENEFICIARIES: Existing MSEs/ New MSEs

BENEFITS/FINANCIAL

ASSISTANCE/PROCEDURE:

• Financial Assistance:-Rs1.0 crores,

Upfront capital subsidy 15%

89MSME-DI, Indore

OTHER MSME SCHEMES

3. CGTMSE

As on March 31, 2009, there are 82 Member Lending Institutions (MLIs) of the

Trust, comprising 28 Public Sector Banks, 16 Private Sector Banks, 33 Regional

Rural banks, 1 Foreign Bank and 4 other Institutions viz., NSIC, NEDFI, SIDBI and

The Tamil Nadu Industrial investment Corporation(TNIIC)

BENEFICIARIES: Existing MSEs/ New MSEs


• Guarantee cover for Micro enterprise is 80% for credit up to 5.0 lakhs .

• In normal case the guarantee cover is up to 75% of the sanctioned

amount.

• Financial Assistance:-Rs1.0 crores.

• The corpus of CGTMSE is being contributed by the Government and

SIDBI in the ratio of 4:1

• The fee payable to the Trust under the scheme is one-time guarantee fee

of 1.5% and annual service fee of 0.75% on the credit facilities

sanctioned. 90MSME-DI, Indore

OTHER MSME SCHEMES

4. ISO 9000/ISO 14001/ 22000/ 27000 series Certification Reimbursement Scheme NMCP

BENEFICIARIES: Existing MSEs


• Financial Assistance-75% of total expenses or Rs.75,000/- whichever is lower.

91MSME-DI, Indore

OTHER MSME SCHEMES

5. MSME-MDA

I. Participation in International Trade Fairs Exhibitions

BENEFICIARIES: Existing MSMEs


• Financia Assistance:-75% of air fare by economy class, space rent -

free 50% depending the structure of MSEs

• Eligibility criteria

(i).Unit having valid permanent registration with DIC

• (ii).The selection of MSEs units would be done by MSME-DIs as per

display product profile, theme of the fair and space availability.

• (iii) MSEs can avail this facility only once a year

92MSME-DI, Indore

OTHER MSME SCHEMES

5. MSME-MDA

II. Govt. Purchase and Price Preference Policy



• Under the government stores Purchase Programme, Government of

India has been

• extending various facilities as given below to the MSEs units registered

with NSIC under its single Point registration scheme:-

• (i) Issue of tender sets free of cost;

• (ii) Exemption from payment of Earnest Money;

• (iii) Waiver of Security Deposit upto the Monetary Limit for which at the

unit is registered: and

• (iv) Price Preference upto 15% over the quotation of large-scale units 93MSME-DI, Indore

OTHER MSME SCHEMES

5. MSME-MDA

III. Financial Assistance for the use of Bar-Code (GS1

India)



• Financial Assistance:-75% of fee (Rs 25,000 to 35,000)

paid to GS1 india for one time registration and annual

recurring fees (Rs 6,000) i.e, Rs 4,500 per year for first

three years. Valid upto 2012

94MSME-DI, Indore

OTHER MSME SCHEMES

6. RGUY - Udyog Mitra Category

• I All Central Govt Bodies of MSME

• II Central and State PSEs and EDIs

• III Other agencies fulfilling the eligibility conditions

BENEFICIARIES: Hand holding support to New Entrepreneur


• Financial Assistance-Registration fee for general & OBC category

is Rs 4000/- for setting up service enterprises, out of which Rs

3000/- will be paid under RGUMY and Rs 1000/- only will be paid

by the applicant.

95MSME-DI, Indore

OTHER MSME SCHEMES

7. Assistance for Strengthening of Training Infrastructure of existing and new Entrepreneurship Development Institutions(EDI)

BENEFICIARIES: EDIs


• The central assistance to be provided would be only catalytic and supplementary to

the contributions and efforts of the States/UT Governments and other agencies

involved in the programme. The financial assistance will be for specific needs of each

case for improvement in areas like building, training aids/equipment and other

support services and will be on matching basis, say 50% of the cost restricted to Rs.

100.00 lakh in each case.

• The State Govt. will examine the expansion/modernisation programmes of EDIs and

forward the same to the Office of Development Commissioner (MSME). Nirman

Bhawan, New Delhi-110011, recommending central assistance.

96MSME-DI, Indore

OTHER MSME SCHEMES8. Trade Related Entrepreneurship Assistance and Development

(TREAD) FOR WOMEN

BENEFICIARIES: Women associations, women NGOs, Self Help Groups (SHGs).

For poor & usually illiterate/semi-literate women


• 30% GoI contribution on project cost and expenses of NGOs for monitoring the

project.

• Training organizations viz. MSME-DIs, Entrepreneurship Development Institutes

(EDIs), nimsme, and the NGOs conducting training programmes for empowerment of

women beneficiaries identified under the scheme would be provided a grant upto

maximum limit of Rs. 1.00 lakh per programme provided such institutions also bring

their share to the extent of minimum 25% of the Government grant

• Institutions such as Entrepreneurship Development Institutes (EDIs), nimsme,

NIESBUD, IIE, MSME-DIs, EDIs sponsored by State Govt. will be provided need based

Government grant primarily for undertaking activities aiming at empowerment of

women such as field surveys, research studies, evaluation studies, designing of

training modules, etc. The grant could be used for meeting the expenses towards

books, periodicals, consultants, computers including miscellaneous expenses etc.

The grant shall be limited up to Rs. 5 lakhs per project.

97MSME-DI, Indore

OTHER MSME SCHEMES

9. Vendor Development Programme

BENEFICIARIES: All MSMEs , PSUs, LMIMSEs


• To generate marketing opportunity

• To have an idea on forward-backward linkage based on comparative cost.

• Assistance-Marketing assistance by SCX Registration.

98MSME-DI, Indore

OTHER MSME SCHEMES

10. NATIONAL AWARD

BENEFICIARIES: All registered MSMEs


• To encourage Quality products conforming national and international standard. Cash award is given for four categories.

• Outstanding effort in entrepreneurship in manufacturing

• Outstanding effort in entrepreneurship in service

• R &D: Quality in selected products.

99MSME-DI, Indore

Thank you

MSME-DI, Indore 100

Welcome

Participants and DelegatesV P Sharma, Dy. Director(Chem)

MSME Development Institute,

Polo ground Indore

MSME-DI, Indore 101

Public Procurement

MSME-DI, Indore 102

Introduction Public Procurement

2012 Policy

MSME-DI, Indore 103

"procure", means to

"obtain, especially by care

or effort".

Meaning Of procure

MSME-DI, Indore 104

Definition of public procurement

system

The procurement system is a function of

government that involves using

government resources (public funds) to

obtain goods, works and services to meet

the the needs of the government as it

carries out its responsibilities to the

citizens.

MSME-DI, Indore 105

Objectives of Procurement

Economy (Value for money)

Efficiency

Transparency

Accountability

Competitiveness

Fairness

MSME-DI, Indore 106

Regulatory Environment

Procurement under GFR

Procurements by Corporate Sector

Procurements by Statutory Bodies

Classified Procurements

MSME-DI, Indore 107

Procurement Cycle

Planning/Designing specifications

Solicitation ofBids

Bids openingand Evaluation

ContractAward

GrievanceRedressal

Contract Administration

Payments

Pre-qualification

MSME-DI, Indore108

MSEs new public procurement

policy

• The Govt. of India have released the Gazette

Notification of the Public Procurement Policy

Which is effective from 1st April 2012.

• The public procurement policy mandating

central departments and public sector

companies to get a part of their annual

purchases of goods and services from micro

and small enterprises (MSEs) and SC/ST

entrepreneurs it will help to improve the

market access of these enterprises and make

them more competitiveMSME-DI, Indore 109

• Under the policy, approved by the Union

cabinet , a target has been set to

procure at least 20 per cent of goods

and services from

them, including 4 per cent from MSEs

owned by SC/ST entrepreneurs.

MSME-DI, Indore 110

• This means that at the present levels of

government procurement, orders for

goods and services worth Rs 35,000

crore will go to MSEs,Rs 7,000 crore of

which to SC/ST entrepreneurs.

MSME-DI, Indore 111

• While these are mandatory provisions to be

notified under Section 11of the MSE

Development Act, 2006, government

departments and public sector undertakings

(PSU) have been allowed three years to

achieve these procurement targets. At the

end of three years, non-conforming

departments will be required to provide

reasons for their failure to meet the targets.

MSME-DI, Indore 112

• The policy also envisages the setting up

of a review committee and strict

monitoring of the procurement process.

This inspires greater confidence in the

implementation of the policy.

• As a policy of affirmative action,

preference in public procurement to

specific groups of suppliers is not new

and has been done in other countries.

MSME-DI, Indore 113

• Under the existing dispensation in the

country, there are government

guidelines that provide support for

marketing of products of MSEs,

including khadi, village and coir

industries. These provide for a price

preference, reservation of products for

exclusive purchase from MSEs, issue of

tender sets free of cost and exemption

from payment of earnest money.

MSME-DI, Indore 114

• In practice, however, government

departments and PSUs have been

found lacking in providing these

facilities. The new policy, has

mandatory provisions and, therefore,

has a much better chance of being

implemented. This will also help

implement the existing guidelines,

especially the facility for the purchase of

358 items reserved for procurement

exclusively from MSEs

MSME-DI, Indore 115

• MSEs that contribute significantly to the

country’s manufacturing output,

employment and exports are also often

highly vulnerable to volatile market

conditions. The government

procurement policy provides them a

certain assurance of stability.

MSME-DI, Indore 116

• The policy makes it clear that the participating

MSEs would have to match the lowest

bidder’s price, although they will be given a

chance

to do so only if they are within a 15 per cent

price range in the open tender. From the

MSEs’ point of view, more than the

earmarking of purchases, it is some of the

promotional measures in the policy that could

be of help in the long run.

MSME-DI, Indore 117

• These include steps that central

departments and PSUs will take to

organise special vendor development

programmes and buyer-seller meetings.

These could have spin-offs such as

stronger linkages between MSEs and

large enterprises.

MSME-DI, Indore 118

• The move definitely spells good news

for not only the MSEs but the economy

as a whole, which stands to benefit from

the enhanced productivity and

employment that this step would bring.

MSME-DI, Indore 119

• Small enterprises are finding difficult to bid for public sector

contracts, despite Government policies and attempts to

intervene. The most MSE’s do not tender for public sector

contracts, Their perception is that they will be unsuccessful

and their time and resources would be better spent on

pursuing activities which are less demanding and whose

outcome is more within their grasp.

The Industry Associations may help them to come out of this

syndrome of MSEs.

MSME-DI, Indore 120

Thank You

FOR DETAILS VISIT

www.dcmsme.gov.in

121MSME-DI, Indore

Documents

e l c o V P Sharma m - Franchise India · • Soft Interventions - Maximum limit for project cost would be Rs. 25.00 lakh per cluster. GoI grant for the soft interventions will be