Miscellaneous Schemes for Ministry of MSME

MSME Innovative Scheme (Incubation, Design, and IPR)

This scheme is like a one-stop innovation ecosystem for MSMEs. It integrates three pillars — Incubation, Design support, and Intellectual Property Rights (IPR).

(A) Incubation

• Aim: To support new ideas and promote adoption of latest technologies.
• Financial Assistance:
  • Up to ₹15 lakh per idea.
  • Up to ₹1 crore for plant and machinery to scale promising innovations.

(B) Design Support

• Aim: Provide expert guidance for solving real-time design problems and help in new product development, improvement, and value addition.
• Financial Assistance:
  • Up to ₹40 lakh for design projects.
  • Up to ₹2.5 lakh for student projects.

(C) IPR (Intellectual Property Rights)

• Aim: To create an IPR culture in MSMEs and help them secure their innovations.
• Support Available For:
  • Domestic and foreign patents.
  • GI (Geographical Indication) registration.
  • Other IP activities.

MSME CHAMPIONS Scheme

• Background: Earlier called Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS).
• Type: Central Sector Scheme.
• Aim: “Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength” → in short, to make small units into big champions.

Key Focus

• Solve MSMEs’ day-to-day problems and grievances.
• Help them modernize manufacturing processes.
• Reduce wastage, encourage innovation, sharpen competitiveness.
• Facilitate their national and global reach.

MSME Competitive (LEAN) Scheme

• Aim: To spread awareness about Lean Manufacturing practices.
  • Lean manufacturing = minimize waste + maximize productivity.
• Eligibility:
  • All MSMEs registered under UDYAM portal.
  • Open also to units under SFURTI and MSE Cluster Development Programmes.
• Incentive: MSMEs are encouraged and financially supported to move step by step through Lean levels (Basic → Intermediate → Advanced).

Revamped Zero Defect Zero Effect (ZED) Certification Scheme

• Background: Originally launched in 2016 to encourage manufacturers to adopt eco-friendly practices.
• Aim: To make Indian companies globally competitive while ensuring quality + sustainability.

Subsidy Support

• Micro Enterprises → 80% subsidy.
• Small Enterprises → 60% subsidy.
• Medium Enterprises → 50% subsidy.
• Additional 10% subsidy → for Women/SC/ST entrepreneurs, and for MSMEs in NER, Himalayan states, LWE-affected areas, Island territories, aspirational districts.

👉 Thus, ZED ensures both “Zero Defect” in quality and “Zero Effect” on the environment.

Credit Linked Capital Subsidy Scheme (CLCSS) for Services Sector

• Aim: To encourage technology upgradation in the services sector.
• Benefit:
  • 25% capital subsidy for procurement of plant & machinery / service equipment.
  • Available through institutional credit.
  • Specifically targeted at SC/ST MSEs.
• Advantage: No sector-specific restrictions → any service sector unit can modernize with support.

Capacity Building of First-Time MSE Exporters (CBFTE) Scheme

• Aim: Encourage Micro and Small Enterprises (MSEs) to offer products and services at international standards.
• Implementing Agency: Export Credit Guarantee Corporation of India (ECGC).
• Eligibility:
  • Only MSEs with valid Udyam Registration.
  • Import Export Code (IEC) should not be older than 3 years.
  • Proof of premium payment is required.

👉 In short, this scheme helps first-time exporters overcome risks and build confidence in international trade.

Promotion of MSMEs in North Eastern Region (NER) and Sikkim

• Type: Central Sector Scheme.
• Tenure: 2021–22 to 2025–26.
• Aim: Provide financial support for enhancing productivity, competitiveness, and capacity building of MSMEs in NER and Sikkim.

Components:

1. Setting up new/modernizing existing mini technology centres.
2. Development of new or existing industrial estates.
3. Promotion of the tourism sector.
4. Creation of common service hubs → kitchens, laundry, dry cleaning, etc.

📌 Geo-tagging of all projects is mandatory → ensures transparency and monitoring.

Interest Subvention Scheme for Incremental Credit to MSMEs (2018)

• Type: Central Sector Scheme.
• Aim: Encourage manufacturing & service enterprises by:
  • Increasing productivity.
  • Incentivizing them to join GST platform.

Benefits:

• Provides 2% interest subvention on fresh or incremental loans (up to ₹100 lakh).

Coverage:

• Loans from:
  • Scheduled Commercial Banks.
  • RBI-registered SI-NBFCs.
  • Co-operative Banks.

Exclusion:

• MSMEs already availing interest subvention under any other State/Central schemes.
• Implementing Agency: SIDBI.
  👉 Helps reduce cost of credit while pushing MSMEs towards formalization through GST compliance.

Honey Mission

• Background: Launched in 2017, as part of the Sweet Revolution.
• Aim: Promote apiculture (beekeeping) and provide self-sustaining employment to farmers, Adivasis, and unemployed youth, particularly in backward and remote areas.

Special Initiative: RE-HAB Project

• “Bee-fences” are set up in elephant corridors → bees naturally prevent elephants from entering farmlands, thus reducing man-animal conflict.
• Nodal Agency: Khadi and Village Industries Commission (KVIC).

📌 Note: Honey is classified as a Minor Forest Produce (MFP) under Forest Rights Act, 2006.

Solar Charkha Mission

• Background: Inspired by a pilot project in Nawada district (Bihar) in 2016, which benefitted ~1180 artisans.
• Type: Central Sector Scheme.
• Aim: Promote inclusive growth through employment generation, especially for women & youth, using solar-powered charkhas.

Eligibility:

• Individual, promoter agency, or Khadi and Village Industry Institution (KVII) can set up a solar cluster.
• Must form a Special Purpose Vehicle (SPV) under Companies Act, 2013.

Features:

• Each cluster = 200–2042 artisans (spinners, weavers, stitchers, etc.).
• Each spinner gets 2 solar charkhas of 10 spindles each.
• Promotes a Green Economy.
• Each cluster covers surrounding villages within 8–10 km radius.

Financial Assistance:

• Max subsidy: ₹9.6 crore per cluster.
• Target: 50 solar charkha clusters nationwide.

Gramodyog Vikas Yojana

• Type: Central Sector Scheme.
• Aim: Promotion and development of village industries through:
  • Common facilities
  • Technological modernization
  • Training

Eligibility

• Any Indian citizen, 18–55 years.
• Only one person per family can avail assistance.
• Persons trained by KVIC, NABARD, or KVIBs are eligible.
• Exclusion: Those who already received support from other govt. schemes for the same purpose.

Tenure & Nodal Agency

• 2021–22 to 2025–26.
• Nodal Agency: KVIC (Khadi and Village Industries Commission).

Key Components

1. Wellness & Cosmetics Industry (Agro-based).
2. Home-based & Agro-processing Industry (Leather, Footwear, Pottery, Honey Mission).
3. Mineral-based industries.
4. Rural Industry Clusters (handlooms, panchayats).
5. Service Industry (repairs, training, etc.).

📌 Special focus: SC/STs, minorities, and BPL families.

SFURTI (Scheme of Fund for Regeneration of Traditional Industries)

• Aim: To organize traditional artisans and producers into clusters, improve competitiveness, and ensure long-term sustainability.

Coverage

• Khadi industries
• Village industries
• Coir industries

Focus

• Physical infrastructure.
• Technology upgradation.
• Training, innovation, product development.

Implementation

• Nodal Agencies: KVIC & Coir Board.
• Other agencies: NGOs, State/Central institutions, Panchayati Raj Institutions.
• SPV formation mandatory for managing clusters.

Private Sector Participation

• Corporates/CSR foundations encouraged to join cluster development.

Financial Assistance

• Regular clusters (up to 500 artisans): ₹2.5 crore per cluster.
• Major clusters (more than 500 artisans): ₹5 crore per cluster.

Regulation of MSME Functions (Portals)

• MSME SAMADHAAN: Online portal for MSMEs to report delayed payments.
• MSME SAMBANDH: Helps monitor public procurement policy for MSMEs.
• MSME SAMPARK: A digital job portal linking trained students from MSME Technology Centres with recruiters.

ASPIRE (A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship)

• Type: Central Sector Scheme.
• Aim: To promote training and incubation support to entrepreneurs in the agro-rural sector through Livelihood Business Incubators (LBIs).
• Provides an eco-system for rural start-ups, but no direct benefit provision for artisans.

National SC-ST Hub

• Aim: Provide professional and marketing support to SC/ST entrepreneurs to help them fulfil obligations under the Public Procurement Policy for MSEs (2012).

Implementation

• Nodal Agency: National Small Industries Corporation (NSIC) (public-sector undertaking).

Key Features

• Provides handholding support like:
  • Single Point Registration Scheme.
  • Special Marketing Assistance Scheme.
  • Credit & subsidy-linked programmes.

📌 This scheme ensures SC/ST entrepreneurs get preferential procurement benefits from govt. tenders.