MICRO, SMALL & MEDIUM ENTERPRISES DEVELOPMENT INSTITUTE (BRANCH) AUTONAGAR VISAKHAPATNAM

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

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

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 1.25 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/ GovtDepts etc in accordance to Public Procurement Policy. • 20 Products reserved for exclusive manufacture by Micro & Small enterprises.

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

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 www.dcmsme.gov.in • ISO 9000/14000 Scheme : Reimbursement of expenses incurred in acquiring ISO 9000, 14000, HACCP standards s.t max of Rs. 75000/-

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 2.00 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 18000,ISO22000 and ISO27000 Certification

31. For more details on our Schemes and services Please log on to www.dcmsme.gov.in

32. Thank you for being with us