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Learn about promoting MSMEs through cluster development, supported by government schemes and policies like MSE-CDP. Explore the methodology and objectives for sustainable growth and access valuable assistance for infrastructure and marketing initiatives.
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Annexure II Harnessing MSMEs for Development
MSME POLICIES & SCHEMES • BY • M. SREENIVASULU • DIRECTOR • MSME-DI, GUWAHATI
Ministry of MSME (NER) DCMSME • Manipur • Tripura • Meghalaya • Mizoram • Tinsukia • Naharlagun • Siliguri • Sikkim • Agartala • Imphal • Shillong • Aizawal MSME-TR Coir Board SRO MSME-DO (NER) Jorhat Ext. NSIC Office MSME-DI, GHY MSME-DI AGARTALA MSME-DI GANGTOK MSME-DI IMPHAL • SILCHAR • DIPHU • TEZPUR ASSAM DIMAPUR (NAGALAND) AIZWAL (MIZORAM) • SHILLONG • TURA MEGHALAYA KVIC ZONAL O/C (GHY)/SILCHAR Dvn O/C (State Office in every State) ARUNACHAL PRADESH • ITANAGAR
MSME- DEVELOPMEMSMNT INSTITUTE, Guwahati, Activities in brief: • Technical Consultancy • Potentiality Survey (State & Districts) • Modernization and Technology Upgradation • Ancillary Development • Training programmes • Export Promotion • Awareness programmes • Directory of specific industries • Coordination with DI & CC, State Govt. Agencies/ Banks • Cluster Development. 1
Definition of MSMEs Cabinet has approved the changes on 7th Feb2018 4
MSE-CDP: WHAT IS A CLUSTER • Cluster is a group of enterprises producing same or similar products/services which can be linked together by common physical infrastructure facilities to help them to address their common challenges. • COMBINATION OF VILLAGE/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
CLUSTER -- A LINKED SYSTEM ENVIRONMENT SUPPORT INSTITUTIONS Backward linkages Forward Linkages FIRM FIRM Machinery supplier Selling Agents FIRM Direct Custom FIRM FIRM RAW Material Supplier Raw Material Supplier BDS PROVIDERS
ADVANTAGE THE CLUSTER APPROACH • SUBSTANTIAL ECONOMIES OF SCALE • IN TERMS OF DEPLOYMENT OF AVAILABLE RESOURCES • EFFECTIVE IMPLEMENTATION • MORE SUSTAINABLE RESULTS • IN THE MEDIUM TO LONG TERM.
OBJECTIVES To support the sustainability and growth of MSEs - Improvement of Technology, Skills and Quality, Market access and Access to Capital To build capacity of MSEs - Formation of SHG, Consortia, up-gradation of Associations To create/up-grade infrastructure facilities - In New/Existing Industrial Areas/Clusters of MSEs To set up CFCs - For Testing, Training Centre, RM Depot, Effluent Treatment and Complementing Production Processes.
CLUSTER DEVELOPMENT METHODOLOGY • Full time CDE • Intermediary led • Role of BDS • 18 Months time • Pressure point as entry • Holistic thereafter Selection Diagnostic Study Trust Building Action Plan Implementation Monitoring and Evaluation Exit
SELLCTION OF CLUSTER(S) • IMPORTANCE OF THE CLUSTER(S) IN TERMS OF NUMBER • OF UNITS, EMPLOYMENT, PRODUCTION, EXPORTS ETC • EXISTENCE OF CRITICAL GAPS • VIABILITY OF THE CLUSTER • VIBRANCY OF LOCAL INDUSTRY ASSOCIATION/S • SOCIAL AND ENVIRONMENTAL CONSIDERATIONS • PREFERENCE FOR CLUSTERS HAVING : • SIZEABLE PRESENCE OF MICRO ENTERPRISES, • RURAL ARTISANS AND • WOMEN ENTREPRENEURS
1. SCOPE OF MSE-CDP- Common Facility Centre: To create tangible assets like- common production. Design centre, Testing Centre, Training Centre, Effluent Treatment Plant, Marketing Display, Selling Centre, Common Logistic Centre, Raw material Bank, etc. GOI Assistance: 90%of the project cost of maximum of Rs. 20.00 crs Cost of land & Building to be met by SPV/state govt. SPV- Minimum 20 cluster units to be members of SPV & registered as section 8 company. Project to be completed & operational within two years. Contribution of cluster beneficiaries should not be less than 10% of the cost of CFC. Contribution of state govt would be considered as gap funding.
2. SCOPE OF MSE-CDP- Infrastructure Development 1 .Consists of projects for infrastructural facilities like power distribution network, water, telecommunication, drainage, pollution control facilities, roads, banks. Raw material storage, marketing outlets. 2. GOI Assistance restricted to 80% of the project cost of maximum Rs. 10.00 Crs for Industrial estates & Rs. 15.00 Crs for Flatted Factory Complex.
3. SCOPE OF MSE-CDP- Marketing Hub/Exhibition Centres • GOI Assistance to associations for establishing Marketing Hubs/Exhibition Centres at centarl places. • GOI grant is 60% of the project cost of maximum Rs. 10.00 crs for product specific assiciations with BMO rating of Gold & above by NABET (QCI) • GOI grant is 80% of the project cost of maximum Rs. 10.00 crs for Association of women entrepreneurs • Remaining cost to be met by SPV/State Govt. SPV contribution not less than 10%. • GOI Assistance will be towards construction of building, furnishing, furniture, items of permanent display, misc assets like generator etc. • Cost of construction of marketing Hub not exceeding Rs. 4.00 Crs with builtup area of 2000 sq mt will also be eligible
Scheme of fund for Regeneration of TraditionalIndustries (SFURTI) • Objective: • Funding to traditional industries & artisanclusters • Improvement in competitiveness ofclusters. • Sustained employability for traditional Industry artisans and ruralentrepreneurs. • Who can apply: • NGOs, Institutions of the Central and State Governments and Semi-Government institutions, field functionaries of State and Central Govt., Panchayati Raj institutions (PRIs), and similar agencies, with suitable expertise to undertake cluster development.
Scheme of fund for Regeneration of Traditional Industries (SFURTI) Contd.. • Benefits – • Maximum of Rs 8 cr. to support Soft, Hard and Thematic interventions. • Type of clusters: • Heritage Clusters (1000-2500 artisans)Rs 8 crore • Major Clusters (500-1000 artisans)Rs 3 crore • Mini-Clusters (Upton 500 artisans)Rs 1.5 crore • Implementation: The KVIC, Coir Board, NiMSME (Hyderabad), IED (Odisha), IIE (Guwahati), IMED, J&K KVIB are the Nodal Agencies for scheme implementation in their respective areas • http://sfurti.msme.gov.in/
Procurement & Marketing Support 1. Participation of Individual MSEs in Domestic Trade Fairs/Exhibitions
OrganisingTrade Fairs/Exhibitions by Ministry/O/O DC(MSME)/GovtOrganisations
Entrepreneurship & Skill Development • Industrial Motivation Campaign (IMC) – One day awareness and Motivation programme for self employment. • Entrepreneurship Development Programme (EDP) – Two weeks programme on Entrepreneurship Development Programme • Management Development Programme (MDP) – Two weeks programme for Development of Management Skills • Entrepreneurship and Skill Development Programme (ESDP) – Six weeks Product oriented ESDPs with theoretical and practical sessions for Skill Development • Skill Development Programme (SDP) – Six months workshop based Skill Development Programme at the Institute premises OTHER SCHEMES OF DC(MSME)
OTHER SCHEMES CONTD.. • Credit Linked Capital Subsidy Scheme for Technology Up-gradation (CLCSS) • Credit Guarantee Fund Scheme for Micro and Small Enterprises(CGTMSE)
OTHER SCHEMES CONTD.. • National Manufacturing Competitiveness Programme (NMCP) • Lean Manufacturing Competitiveness Scheme for MSMEs (LMCS) • Design Clinic Scheme for design expertise to MSMEs Manufacturing sector (DESIGN) • Support for Entrepreneurial and Managerial Development of SMEs through Incubators. • Building Awareness on Intellectual Property Rights(IPR) for MSME. • Promotion of Information and Communication Technology ( ICT) in Indian Manufacturing Sector • Digital MSME
Special Scheme • National Award Scheme • Others: • UdyogAadhaar Memorandum (UAM) • MSME Data Bank - • Financial Support to MSMEs in ZED Certification Scheme • Technology Centre Systems Programme (TCSP) VARIOUS SCHEMES (Cont..)
Public Procurement Policy for MSEs • Public Procurement Policy for MSEs order, 2012 notified under section 11 of MSMED Act 2006. • Effective from 1st April, 2012 (Gazette notification on 26th March’ 2012.) • Every Central Ministry /Dept./Central PSUs shall set an annual target for 20% procurement from MSE Sector. • Overall procurement goal of minimum 25% shall be mandatory after three years i.e. from 1st April 2015. • A sub-target of 4% out of 25% target of annual procurement earmarked for procurement from MSEs owned by SC/STs. 3% reserved for Women
C Contact Us MSME – Development Institute Ministry of MSME, Govt. of India Bamunimaidam, Guwahati Pin: 781021 E-mail id: dcdi-guwahati@dcmsme.gov.in Website: dcmsme.gov.in
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