Udyam Registration / MSME

Get Udyam Registration Online quickly.

Trusted By

5 Lakh++ loving customers

India’s most trusted legal documentation portal.

Authorized Service Provider of Indian E-Governance Sector

What is Udyam Registration Certificate?

 

The Union Ministry of Micro, Small and Medium Enterprises (MSME) has introduced a new process of classification and registration of MSME Enterprises under the name of ‘Udyam Registration’ on July 01, 2020.

An Udyam Registration Certificate is received by the applicant once the entire online registration process is complete. This Certificate is valid for lifetime. This certificate will have a dynamic QR Code from which the web page on the government Portal and details about the enterprise can be accessed.

Note: You are also informed that PAN and GSTIN are mandatory for Udyam Registration from 01.04.2021. You are advised to apply for PAN and GSTIN immediately and update the same on this website by 31.03.2021, to avoid suspension of Udyam Registration.

CSC Price

500/-

Enterprises engaged in the Manufacturring [production, processing or preservation of goods] and Services [whose investment in equipment (original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered) or as may be notified under the MSMED Act, 2006] as specified below:

    • A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 1 crore and Turnover does not exceed 5 crore;
    • A small enterprise is an enterprise where the investment in plant and machinery is between Rs. 1 crore to Rs. 10 crore and turnover is between Rs. 5 crore to Rs. 50 crore ;
    • A medium enterprise is an enterprise where the investment in plant and machinery is between Rs. 10 crore to Rs. 20 crore and turnover is between Rs. 50 crore to Rs. 250 crore. 
  • PAN Card
  • Aadhar Card
  • Cancelled Cheque / Bank Passbook
  • GSTIN Certificate

Procedure for Udyam Registration

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the Government of India to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme. The Ministry of Micro, Small and Medium Enterprises, Government of India and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises.

Reservation of items for exclusive manufacture in SSI sector statutorily provided for in the Industries (Development and Regulation) Act, 1951, has been one of the important policy measures for promoting this sector.

The Reservation Policy has two objectives :-

Ensure increased production of consumer goods in the small scale sector

Expand employment opportunities through setting up of small scale industries

It has made very easy for enterprises that are having MSME Certificate to obtain Licenses, approvals and registrations on any field for their business from the respective authorities as they can produce the Certificate of MSME Registration while making application.

Under the International Cooperation Scheme, financial assistance is provided on reimbursement basis to the State/Central Government organizations, industries/enterprises Associations and registered societies/trusts and organizations associated with MSME for deputation of MSME business delegation to other countries for exploring new areas of MSMEs, participation by Indian MSMEs in international exhibitions, trade fairs, buyer seller meet and for holding international conference and seminars which are in the interest of MSME sectors.

The scheme of refund of octroi provided under the Package Scheme of Incentives, 1993 will be included in the new Scheme up to 31-3-2006 on the same pattern. Where account-based cess or other levy is charged instead of or in lieu of octroi, such change will also be eligible for refund as in the case of octroi.

At present, IT units in public IT Parks are exempted from stamp Duty and Registration fees upto 31st March 2006. Now all new industrial units having MSME Registration and expansions will be exempted from payment of Stamp Duty and Registration fees.

Enterprises that have MSME Registration can enjoy Direct Tax Exemption in the initial year of business, as mention in the scheme by Government and depending on business activity.

Enterprises that have MSME Registration can avail Bar Code Registration subsidy as mentioned in the scheme

Enterprises that have MSME Registration can avail Subsidy on NSIC Performance.

Enterprises that have MSME Registration are eligible for Industrial Promotion Subsidy (IPS) as mentioned in the scheme.

Enterprises that have MSME Registration are eligible for Counter Guarantee from Government of India through CGSTI.

The Ministry of Micro, Small and Medium Enterprises gives protection to MSME Registered Business against delay in payments from Buyers and right of interest on delayed payment through conciliation and arbitration and settlement of dispute be done in minimum time. If any micro or small enterprise that has MSME registration, supplies any goods or services, then the buyer is required to make payment on or before the date agreed upon between the buyer and the micro or small enterprise. In case there is no payment date on the agreement, then the buyer is required to make payment within fifteen days of acceptance of good or services. Further, in any case, a payment due to a micro or small enterprise cannot exceed forty-five days from the day of acceptance or the day of deemed acceptance. In case of failure by the buyer to make payment on time, the buyer is required to pay compound interest with monthly interest rests to the supplier on that amount from the agreed date of payment or fifteen days of acceptance of goods or service. The penal interest chargeable for delayed payment to a MSME enterprise is three times of the bank rate notified by the Reserve Bank of India.

The rate of Interest for enterprise that has MSME registration are lower as compare to other enterprises. Certain targets are set for banks’ lending to the Micro and Small Enterprises. The banks’ have to achieve a 20% growth in credit to micro and small enterprises and 10% annual growth in the number of micro enterprises accounts and 60% of total lending to Micro and Small Enterprises sector. The banks have to follow the following:

1. 40% of the total advances must go to micro and small enterprises involved in manufacturing having investment in plant and machinery up to Rs.10 lakh and for service enterprises having investment in equipment up to Rs.4 lakh.

2. 20% of the total advance to micro and small enterprises should go to manufacturing enterprises that have above Rs.10 lakh till Rs.25 lakh investment in the plant and machinery and for service enterprises that have investments in equipment above Rs.4

3. To simplify, 60% of the advances must go to micro enterprises.

Enterprises that have MSME Registration Certificate can reimburse ISO Certificate Expenses by making application to respective authority along with MSME

Enterprises that have MSME Registration can enjoy Excise Exemption in the initial year of business, as mention in the Excise Exemption scheme by Government and depending on business activity.

Enterprises that have MSME Registration have preference in procuring government tenders. Special treatment is given to MSME Registered organization while making application for government tenders.

Enterprises that have MSME Registration can avail 15% weightage in price Preference as mentioned.

Enterprises that have MSME Registration can avail benefit of 1% exemption on interest rate on OD as mentioned in the scheme.

Enterprises that have MSME Registration Certificate can avail 50% 50% subsidy for patent registration by making application to respective authority.

  • Scheme for providing financial assistance to set up new enterprises under PMEGP
  • Description : The scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level. At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks. In such cases KVIC routes government subsidy through designated banks for eventual disbursal to the beneficiaries / entrepreneurs directly into their bank accounts.
  • Nature of assistance : The maximum cost of the project/unit admissible in manufacturing sector is ₹ 25 lakhs and in the business/service sector, it is ₹ 10 lakhs. Categories of Beneficiary’s Rate of subsidy under PMEGP (of project cost) Area (location of project/unit) General category 15%(Urban), 25%(Rural), Special 25%(Urban), 35%(Rural) (including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas, etc.) The balance amount of the total project cost will be provided by the banks in the form of term loan and working capital.
  • Who can apply? : Any individual, above 18 years of age. At least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business / service sector. Only new projects are considered for sanction under PMEGP. Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme), Institutions registered under Societies Registration Act,1860; Production Co-operative Societies, and Charitable Trusts are also eligible. Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are NOT eligible.
  • How to apply? : The State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of respective states (for DICs) will give advertisements locally through print & electronic media inviting applications along with project proposals from prospective beneficiaries desirous of establishing the enterprise/ starting of service units under PMEGP. The beneficiaries can also submit their application online at https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp and take the printout of the application and submit the same to respective offices along with Detailed Project Report and other required documents.
  • Whom to contact : State Director, KVIC. Address available at http://www.kviconline.gov.in Dy. CEO (PMEGP), KVIC, Mumbai Ph: 022-26711017 & Email: ykbaramatikar.kvic@gov.in
  • Description : Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI) jointly established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in order to implement Credit Guarantee Scheme for Micro and Small Enterprises. The corpus of CGTMSE is contributed by Government of India and SIDBI. 75% of the loan amount to the bank is guaranteed by the Trust Fund.
  • Nature of assistance : Collateral free loan up to a limit of ₹ 100 lakh is available for individual MSE on payment of guarantee fee to bank by the MSE.
  • Who can apply? : Both existing and new enterprises are eligible under the scheme.
  • How to apply? : Candidates meeting the eligibility criteria may approach banks / financial institutions, and select Regional Rural Banks which are eligible under the scheme. Web links are www.dcmsme.gov.in/schemes/sccrguarn.htm
  • Whom to contact : 1) CEO, CGT SME, Ph: 022-61437805 & Email: pradeepm@cgtmse.in, 2) ADC, O/o DC, MSME, Ph: 011-23062241 & Email : arun_kumar@nic.in
  • Description : The Interest Subsidy Eligibility Certificate (ISEC) Scheme is an important mechanism of funding khadi programme undertaken by khadi institutions. It was introduced to mobilise funds from banking institutions for filling the gap between the actual fund requirements and availability of funds from budgetary sources.
  • Nature of assistance : Under the ISEC Scheme, credit at a concessional rate of interest of 4% per annum for working capital, is made available as per the requirement of the institutions. The difference between the actual lending rate and 4% is paid by the Central Government through KVIC to the lending banks.
  • Who can apply? : The Khadi institutions, having valid Khadi certificate and sanctioned khadi programme.The Institutions registered with the KVIC/State Khadi and Village Industries Boards (KVIBs) can avail of financing under the ISEC Scheme, the Scheme supports only the khadi and the polyvastra sector.
  • How to apply? : The Khadi institutions will apply to the financing bank for working capital alongwith the ISEC certificate issued by KVIC. Based on the working capital sanctioned, financing bank will raise the reimbursement claim to the nodal branch for the differential interest rate over and above 4%.
  • Whom to contact : Dy. CEO, KVIC, Ph: 022-26710021 & Email: kvicecr@gmail.com
  • Description : The Market Promotion and Development Assistance Scheme (MPDA) has been launched as a unified scheme by merging different schemes implemented by the Khadi sector including publicity, marketing, market promotion and marketing development assistance. Further, grant/subsidy will also be available for construction of Khadi plazas. The overall objective of the scheme is to ensure increased earnings for artisans.
  • Nature of assistance : Modified MDA (MMDA) shall be allowed @ 30% on the Prime cost of Khadi (cotton, silk, woollen) and Polyvastra
  • Who can apply? : The Khadi institutions, having valid Khadi certificate and categorised as A+,A,B and C only are eligible to avail MMDA grant from KVIC.
  • How to apply? : The total amount of MMDA on production will be claimed by the producing Institution from the KVIC and will be distributed amongst the stakeholders viz., spinners and weavers, producing Institutions and selling Institutions in the ratio 40%, 20% and 40% respectively. Producing Institutions shall submit quarterly claim of MMDA based on the actual production achieved during the preceding quarter of the financial year. The difference, if any, would be adjusted in the last quarter of the financial year on the basis of accounts audited by a Chartered Accountant. The MMDA, preferably, shall be reimbursed electronically by the State/Divisional office of the KVIC on a quarterly basis.
  • Whom to contact : Dy. CEO, KVIC, Ph: 022-26710021 & Email: kvicecr@gmail.com
  • Description : The main objectives of the scheme are to: To organize the traditional industries and artisans into clusters in order to make them, competitive and provide support for their long term sustainability; To provide sustained employment for traditional industry artisans and rural entrepreneurs; To enhance marketability of products of such clusters by providing support for new products, design intervention and improved packaging and also the improvement of marketing Infrastructure; To equip traditional artisans of the associated clusters with the improved skills and capabilities through training and exposure visits; To make provision for common facilities and improved tools and equipments for artisans; To strengthen the cluster governance systems with the active participation of the stakeholders, so that they are able to gauge the emerging challenges and opportunities and respond to them in a coherent manner; To build up innovative and traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnerships, so as to gradually replicate similar models of cluster- based regenerated traditional industries.
  • Nature of assistance : The Scheme would cover three types of interventions namely: ‘Soft Interventions’, ‘Hard Interventions’ and ‘Thematic Interventions’. The project outlay for various clusters is as follows: Heritage cluster (1000-2500 artisans *): ₹ 8 cr; Major cluster (500-1000 artisans *): ₹ 3 cr; Mini cluster (Up to 500 artisans*): ₹ 1.5 cr. *For NER/ J&k and Hill States, there will be 50% reduction in the number of artisans per cluster. Soft Interventions: A maximum ceiling of ₹ 25.00 lakhs (100% scheme funding). Hard Interventions: As per project requirement (75% scheme funding) Cost of Technical Agency is calculated at 8 % of Soft and Hard Interventions (100% scheme funding). Cost of Implementing Agency/ Cluster Executive is fixed at a ceiling of ₹ 20.00 lakhs (100% scheme funding).
  • Who can apply? : Non-Government Organizations (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.
  • How to apply? : The above eligible agency/organization has to submit the proposal to the State Office, KVIC and the proposed is to be scrutinized at State Level and Zonal Level before being submitted onwards to the Scheme Steering Committee for approval.
  • Whom to contact : Deputy Secretary (ARI), M/o MSME, Ph: 011-23062745, Email: samar.nanda@nic.in

Description : The interventions under CVY Scheme envisage a wide range of activities like skill development of artisans, mahila coir yojana, for modernization, upgradation and/or establishing a new unit under Coir Industry Technology Upgradation Scheme (CITUS), promoting the domestic as well as export market, providing of trade and industry related functional support services, and welfare of coir workers.

  • Description : A new component namely “Coir Industry Technology Upgradation Scheme (CITUS)” has been introduced replacing the earlier component i.e. “Development of Production Infrastructure” of Coir Vikas Yojana for giving away assistance to the entrepreneurs for procurement of eligible Plant & Machinery for modernization, upgradation and/or establishing a new unit on making application for the purpose to go for larger investment in the coir sector. The financial assistance shall be 25% of the cost of admissible items of Plant and Machinery procured by the Coir units. The upper ceiling of the financial assistance will be Rs.2.50 crores per coir unit/ project.
  • Nature of assistance : The financial assistance shall be 25% of the cost of admissible items of Plant and Machinery procured by the Coir units for modernization, upgradation and/or establishing a new unit. The upper ceiling of the financial assistance will be Rs.2.50 crores per coir unit/ project.
  • Who can apply? : All coir production/processing units newly established will be eligible to apply for assistance. All coir production/ processing units registered with Coir Board under Coir Industry (Registration) Rules, 2008 and having Udyog Aadhar are eligible to apply for financial assistance for modernisation under this scheme.
  • How to apply? : The applicant/beneficiary unit seeking assistance under this component shall file applications online with all relevant details /documents prescribed.
  • Whom to contact : Joint Director (Planning), Coir Board, Ph: 9447187059 & Email: jdp@coirboard.org
  • Description : The component envisages extension of the outcomes of research at the laboratory level for application at the field level and extension of testing and service facility. The Research and Development activities of the Board are carried out through the twin research institutes: the Central Coir Research Institute, Kalavoor and Central Institute of Coir Technology, Bangalore.
  • Nature of assistance : Technology Transfer, Incubation, Testing and Service Facilities
  • Who can apply? : The Research and Development activities of the Board are carried out through the twin research institutes: the Central Coir Research Institute, Kalavoor and Central Institute of Coir Technology, Bangalore. These institutes are eligible for use of funds released under Science & Technology. The research outcomes are beneficial to the coir industry and trade in India and abroad.
  • How to apply? : Manufacturers/Entrepreneurs/Coir Workers can approach Research Centre in order to avail of assistance in Technology Transfer, Incubation, Testing and Service facilities.
  • Whom to contact : Director (RDTE), Central Coir Research Institute, Coir Board. Ph: 0477 2258094 & Email: ccri.coirboard@gmail.com
  • Description : Skill Upgradation & Mahila Coir Yojana (MCY) is one of the key components under the Scheme Coir Vikas Yojana. Coir Board imparts training in processing of coir and value addition to potential workers, coir artisans/entreprenuers through its training centres, i.e., National Coir Training and Design Centre (NCT&DC), Kalavoor, Alleppey and Research-cum-Extension Centre, Thanjavur, and Field Training Centres of Regional Officers/ Sub Regional Officers of the Board located at various parts of the country. The Mahila Coir Yojana (MCY) is intended to provide self employment opportunities to rural women artisans in regions processing coconut husk.
  • Nature of assistance : The stipend per trainee for the skill development programmes will be limited to Rs.3,000/- per month and in the case of training programmes of less than one month duration, stipend will be disbursed on prorata basis. The honorarium for the trainer will be limited to Rs. 15.000/- per month. An amount of Rs.400/- per head per month will be provided as financial assistance to the training sponsoring agency to meet the operational cost of the training for raw material, power charges, other incidentals etc.
  • Who can apply? : Coir artisans and workers engaged in the coir industry may avail of the financial assistance for procurement of machines/equipments under PMEGP scheme for setting up of new coir units for which the maximum project cost is Rs.25 lakhs.
  • How to apply? : The officer-in-charge of the Regional Extension Centre will handle selection of trainees for training programmes conducted at the Regional Extension Centres. Trade Associations, Unit Owners, NGOs, Co-operatives and Industries Department will sponsor such candidates and recommend them for training.
  • Whom to contact : Joint Director (P), Coir Board, Ph: 9447187059 & Email: jdp@coirboard.org
  • Description : Coir Board is implementing Export Market Promotion with a view to improve the export performance of Indian Coir Sector through various export market promotion activities such as sponsoring delegations; participation in seminars and conferences; organising participation in international fairs; undertaking generic publicity abroad; extending financial assistance to Micro, Small and Medium Enterprises and Exporters; presenting Coir Industry Awards on an annual basis to recognize the outstanding performance in the areas of export; domestic trade; R&D and functioning of units and societies.
  • Nature of assistance : 1. Delegation, Consultancy & Information Sourcing 2. Participation in seminars and conferences 3. Participation in international fairs/buyer-seller meets 4. Publicity abroad 5.External Market Development Assistance 6. Coir Industry Awards. The assistance shall be provided as per revised guidelines of International Cooperation Scheme (IC Scheme) issued on 15.06.2018.
  • Who can apply? : Manufacturers, Entrepreneurs and Exporters of Coir
  • How to apply? : The application forms can be had either from the Coir Board HO or it can be downloaded from the website http://coirboard.gov.in/
  • Whom to contact : Joint Director (P), Coir Board, Ph: 9447187059 & Email: jdp@coirboard.org
  • Description : In pursuance of Section 10(1) of Coir Industry Act 1953, Coir Board has been taking various measures for popularizing coir and coir products and expanding the domestic market. Establishment and maintenance of Showroom and Sales depots, participation in fairs / exhibitions organized by other agencies and organizing exclusive fairs for Coir and coir goods within the country, providing Market Development Assistance to State supported organizations for enlarging marketing network, organizing generic publicity through press, television, website and radio and erection of hoardings, fixing of quality standards, inspection and a certification of quality of coir goods are some of the measures taken by Coir Board towards achieving the objective. The activities undertaken by the Board for the purpose are publicity, participation in domestic exhibitions, Extension of performance linked Market Development Assistance, construction/renovation/interior decoration of new and existing showrooms/market development centres of the Board and field demonstration/displays.
  • Nature of assistance : The component proposes to provide financial assistance to the Apex Co-operative Societies, Central Co-op. Societies, Primary Co-operative Societies, Public Sector Enterprises, franchisees appointed by Coir Board in the coir industry and the Showroom and Sales Depots / Hindustan Coir of the Coir Board. The MDA is granted at the rate of 10% of their average annual sales turnover of coir products including coir fibre, coir pith, coir pith block, coir pith products, coir pith organic manure, coir yarn, mats, matting, rubberized coir goods, coir geotextile, garden articles, coir bags, coir umbrella, coir chapel, coir ornaments, coir handicrafts, coir wood and other innovative products during the preceding three financial years, subject to the condition that 5% increase should have been achieved over the immediate previous year. This Assistance will be shared on 1:1 basis between the Central Government and the concerned State/Union Territory Government. The disbursement of Central share of MDA will be subject to the budgetary outlay available with the Coir Board under the relevant schemes.
  • Who can apply? : Apex Co-operative Societies, Central Co-op. Societies, Primary Co-operative Societies, Public Sector Enterprises, franchisees appointed by Coir Board in the coir industry and the Showroom and Sales Depots / Hindustan Coir of the Coir Board.
  • How to apply? : The MDA application form can be obtained from the Coir Board HO and it also can be downloaded from the website of coir board. http://coirboard.gov.in/
  • Whom to contact : Joint Director (P), Coir Board, Ph: 9447187059 & Email: jdp@coirboard.org
  • Description : Collection of statistical data pertaining to various aspects like production, productivity, labour infrastructure, raw material, marketing etc. is required for providing feedback to the trade and industry and for evolving appropriate policy for the overall organized and systematic development of the coir industry. Introduction and maintenance of an updated and effective IT related management information system is an in escapable requirement for the development of this highly competitive sector.
  • Nature of assistance : The component provides accessible export data such as name of importing countries, value and quantum of export to each country. Survey & Study reports of various sectors are available for the Coir Industry. HRD Program can be utilised by coir workers for the betterment of their knowledge in tune with modern technology.
  • Who can apply? : The Board’s officials, stake holders of the industry, manufacturers, coir workers and major market player can avail of HRD program organized under the scheme.
  • How to apply? : The Board’s officials, stake holders of the industry, manufacturers, coir workers and major market player can approach the Head Office and Regional Offices of the Board in order to participate in the HRD programs organized from time to time in different regions.
  • Whom to contact : Joint Director (P), Coir Board, Ph: 9447187059 & Email: jdp@coirboard.org
  • Description : Coir Board had been implementing Coir Board Coir Workers Group Personal Accident Insurance Scheme for the benefit of the coir workers in the country. The scheme started from the year 1998 was aimed at providing insurance coverage against accidental death, permanent total disability and permanent partial disability to the coir workers. The coir workers aged 18 and above engaged in the industry were covered under the scheme. The insurance coverage was given on the basis of a comprehensive policy covering 4 lakh coir workers without naming each and every worker. The scheme titled “Coir Board Coir Workers Group Personal Accident Insurance Scheme” which was in operation up to 31.05.2016 has been converged to “Pradhan Mantri Suraksha Bima Yojana”(PMSBY) with effect from 01.06.2016.
  • Nature of assistance : The scheme is for a period of one year cover, renewable from year to year. Accident insurance coverage is given for death or disability cover for death or disability on account of accident to coir workers.
  • Who can apply? : The coir workers to be enrolled through Coir Board may be self-employed, employed under the SFURTI coir clusters, coir workers engaged in the units already registered with the Board, coir workers coming under the fold of Welfare Fund Board, PSUs, Corporations, Federations, Cooperative Societies, etc.
  • How to apply? : All coir workers in the country in the age 18 to 70 years having Aadhar linked Savings Bank account will be entitled to join. The coir worker would be eligible to join in the scheme only through Aadhar linked savings bank account.
  • Whom to contact : Joint Director (P), Coir Board, Ph: 9447187059 & Email: jdp@coirboard.org
  • Description : The objectives of the scheme include inculcating Zero Defect & Zero Effect practices in manufacturing processes, ensure continuous improvement and supporting the Make in India initiative. The ZED Certification scheme is an extensive drive to create proper awareness in MSMEs about ZED manufacturing and motivate them for assessment of their enterprise for ZED and support them. After ZED assessment, MSMEs can reduce wastages substantially, increase productivity, expand their market as IOPs, become vendors to CPSUs, have more IPRs, develop new products and processes etc. The scheme envisages promotion of Zero Defect and Zero Effect (ZED) manufacturing amongst MSMEs and ZED Assessment for their certification so as to: Develop an Ecosystem for Zero Defect Manufacturing in MSMEs; Promote adaptation of Quality tools/systems and Energy Efficient manufacturing; Enable MSMEs for manufacturing of quality products; Encourage MSMEs to constantly upgrade their quality standards in products and processes; Drive manufacturing with adoption of Zero Defect production processes and without impacting the environment; Support ‘Make in India’ campaign; Develop professionals in the area of ZED manufacturing and certification.
  • Nature of assistance : Assessment & Rating/Re-rating/Gap analysis/Hand holding – The subsidy provided by the Government of India for Micro, Small & Medium Enterprises will be 80%, 60% and 50% respectively. There shall be an additional subsidy of 5% for MSMEs owned SC/ST/women and MSMEs located in NER and J&K for assessment & rating/re-rating/gap analysis/hand holding: a) Assessment/Rating by empanelled Credit Rating Agencies/other Agencies valid for 4 years (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises’ Certification Fee: average 70% of Fee) (Assessment Fee Rs. 10,000/-& Rs 80,000/- per enterprise respectively for Desktop Assessment and ZED rating Complete Assessment). b) Additional rating for Defence angle i.e. Defence ZED by empanelled Credit Rating Agencies/other Agencies valid for 4 years (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises’ Certification Fee: average 70% of Fee) (Assessment Fee Rs. 40,000/- per enterprise.) c) Gap Analysis, Handholding, Consultancy for improving rating of MSMEs by Consultants through QCI/NPC, Field formations of O/o DC-MSME viz. MSME-DI, MSME-TC including its autonomous bodies, BEE etc. (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises’ Consultancy charges: average 70% of Fee) (Hand holding charges Rs. 1.9 Lakh per enterprise whereas in case of MSMEs owned by SC/ST entrepreneurs additional support of Rs 10,000/- will be provided.) d) Re-Assessment/Re-Rating by Credit Rating Agencies & Other Agencies (Ministry of MSME will subsidize* 80% of Micro, 60% of Small, 50% of Medium Enterprises’ Certification Fee: average 70% of Fee) (Assessment Fee Rs. 40000/- per enterprise.).
  • Who can apply? : All manufacturing Micro, Small and Medium enterprises (MSME) having Udyog Adhar Memorandum can apply.
  • How to apply? : The ZED Certification Scheme is a 4 steps process: Step 1 : Register free on the online portal of ZED (www.zed.org.in), using the following link: http://assessment.zed.org.in/Assessment/Assessment_BeforeLogin.aspx, using the valid (Indian) mobile number and email address. Step 2 : Online self-assessment on the ZED parameters followed by Desktop Assessment. Step 3 : Site-assessment, if selected on the basis of Desktop Assessment. Step 4 : Consultancy: Rated MSMEs will have the option to avail the service of an authorized ZED consultant for gap-analysis and handholding.
  • Whom to contact : Registration and Online self-assessment: Mr. Akash Agrawal Site-assessment and Consultancy: Mr. Sameer Parashar Address: IMA Building, 3rd Floor, I P Estate, Ring Road, New Delhi – 110002, India. Email: zed@qcin.org & Phone no: 011-23708371.
  • Description : The main objectives of the scheme are to: (i) Create new jobs and reduce unemployment (ii) Promote entrepreneurship culture in India (iii) Boost Grassroots economic development at district level (iv) Facilitate innovative business solution for un-met social needs, and (v) Promote innovation to further strengthen the competitiveness of the MSME sector.
  • Nature of assistance : NSIC/KVIC or Coir Board or any GoI or State Government agency to set up 80 Livelihood Business Incubators for the period 2014 to 2016. The objectives are: Promotion of Innovation, Entrepreneurship and Agro-Industry organisation of the M/o MSME, and one-time grant of 100% of cost of Plant & Machinery other than the land and infrastructure, or an amount up to Rs 100 lakhs, whichever is less is to be provided In case of incubation centres to be set up under PPP mode with NSIC, KVIC or Coir Board or any other Institution/agency of GoI/State Government, one- time grant of 50% of cost of Plant & Machinery, other than the land and infrastructure, or Rs 50.00 lakhs, whichever is less is to be provided. Assistance towards the training cost of incubates will be met out of the ATI scheme of the Ministry as far as possible for both centres. Total budget plan is Rs 62.50 cr for 2014-2016.
  • Who can apply? : The Scheme aims to implement the Incubation and Commercialisation of Business Ideas Programme through technical / research institutes, including those in the field of agro based industry. These would be designated as Knowledge Partners and would incubate new/existing technologies for their commercialisation. The scheme also provides funds for the incubator/incubation and creates necessary synergy between this scheme and the Livelihood Business Incubators/Technology Business Incubators and Incubation schemes of MSME / NSIC / KVIC / Coir Board / Other Ministries/Departments as well as Private incubators.
  • How to apply? : Application can be sent to Aspire Scheme Steering Committee of the Ministry of MSME. The Scheme Steering Committee will be responsible for overall policy, coordination and management support. The Council will be chaired by Secretary, Ministry of MSME.
  • Whom to contact : Deputy Secretary (ARI), M/o MSME, Ph: 011-23062745, Email: samar.nanda@nic.in
  • Description : CLCSS provides 15% subsidy for additional investment up to ₹ 1 cr for technology upgradation by MSEs. Technology upgradation would ordinarily mean induction of state-of-the-art or near state-of-the- art technology. In the varying mosaic of technology covering more than 7,500 products in the Indian small scale sector, List of technologies is available at http://www.dcmsme.gov.in. Units looking to replace existing equipment/technology with the same equipment/technology will not qualify for subsidy under this scheme. Similarly, units upgrading with used machinery would not be eligible under this scheme.
  • Nature of assistance : The revised scheme aims at facilitating technology upgradation by providing 15% up front capital subsidy to MSEs, including tiny, khadi, village and coir industrial units, on institutional finance availed by them for induction of well established and improved technologies in specified sub-sectors/products approved under the scheme.
  • Who can apply? : Any MSE unit
  • How to apply? : Candidates meeting the eligibility criteria may approach 12 nodal banks / agencies. These are SIDBI, NABARD, SBI, BoB, PNB, BOI, SBBJ, TIIC, Andhra Bank, Corporation Bank, Canara Bank and Indian Bank. Web link: www.dcmsme.gov.in/schemes/credit_link_scheme.htm
  • Whom to contact : Director (CLCSS), O/o DC, MSME, Ph: 011-23061197, Email: anshumohanti@gmail.com
  • Description : In order to enhance the competitive strength of SMEs, the scheme provides incentives to those SMEs/ancillary undertakings that have acquired ISO 9000/ISO 14001/HACCP certification. The scheme is enlarged so as to include reimbursement of expenses in the acquisition of ISO 14001 certification.
  • Nature of assistance : The scheme envisages reimbursement of charges incurred for acquisition of ISO-9000/ISO-14001/HACCP certification to the extent of 75% of expenditure, subject to a maximum of ₹75,000 in each case.
  • Who can apply? : The scheme is applicable to MSEs/ancillary/SSSB units that have already acquired ISO-9000/ISO-14001/ HACCP certification.
  • How to apply? : MSEs with their registration no. are required to submit their application, duly completed, to their local Director, MSME-DI, addresses given in the website: http://www.dcmsme.gov.in.
  • Whom to contact : JDC, (ISO), O/o DC, MSME, Ph: 011-23062680 & Email : bisariya.sanjay@nic.in
  • Description : Under this scheme the Ministry conducts seminars and reimburses registration fees for bar coding in order to encourage MSEs to use bar-codes.
  • Nature of assistance : Reimbursement of registration fee (one time and recurring for 3 years) for bar coding. Financial assistance for reimbursement of 75% of one-time registration fee (Under MSE-MDA) and 75% of annual recurring fee for first three years (Under NMCP) paid by MSEs to GS1 India for the use of bar coding.
  • Who can apply? : The scheme applies only to MSEs with and registration with GS1 India for use of barcode.
  • How to apply? : After getting registration for use of barcode for products, (http://www.gs1india.org). The application form along with formats for supporting documents may be collected from the Director, MSME-DI, Fill the prescribed application form for claiming reimbursement on bar code; Submit the filled-in application form with required documents to the office of MSME-DI. The filled-in along with formats with required documents is to be submitted to the office of MSME-DI.
  • Whom to contact : ADC,O/o DC, MSME, Ph : 011-23062396 & Email : calsen@nic.in
  • Description : The objective of the scheme is to enhance the manufacturing competitiveness of MSMEs through the application of various Lean Manufacturing (LM) techniques.
  • Nature of assistance : Financial assistance is provided for implementation of lean manufacturing techniques, primarily the cost of lean manufacturing consultant (80% by GoI and 20% by beneficiaries). Lean manufacturing consultants (LMCs) will raise bills for services provided to Special Purpose Vehicle (SPV). SPV will, in turn, pay the first installment of 20% to the LMC and will obtain reimbursement from the NMIU. Thereafter, Ministry of MSME will transfer funds to the NMIU. SPV payments to LMC will be on a milestone basis in 5 tranches, each of 20% of the amount fixed.
  • Who can apply? : The scheme is open to all manufacturing MSEs. The units are required to form MC, ideally of 10 units each with a minimum 6, by signing among themselves a Memorandum of Understanding anMoU to participate in the scheme.
  • How to apply? : A group of SMEs can apply for the scheme. Either a recognised SPV can apply on its own, or a mini cluster can be formed by a group of 10 or more such units. The SPV can apply to the National Monitoring and Implementing Unit (National Productivity Council for the Scheme) in the given format. www.dcmsme.gov.in/schemes/lean-manufact.htm
  • Whom to contact : JDC (LEAN), O/o DC, MSME, Ph: 011-23062394 & Email : bisariya.sanjay@nic.in
  • Description : The scheme is for increasing competitiveness of MSMEs through adoption of design and its learning.
  • Nature of assistance : Funding support of (1) ₹60,000 per seminar and 75% subject to a maximum of ₹3.75 lakhs per workshop, (2) To facilitate MSMEs to develop new Design strategies and or design related products and services through project interventions and consultancy. (Government of India contribution @ 75% for micro, 60% for SMEs for the project range ₹15 lakh to ₹40 lakh.)
  • Who can apply? : Expert agencies (Industry Associations, Technical Institutions or other appropriate bodies), for conducting seminars and workshops, MSMEs or groups of MSMEs, Academic Institutes/ design companies/ design consultants, etc., applying as coapplicants along with a designated MSME.
  • How to apply? : Expert agencies can directly apply to design clinic centres expressing intent to conduct workshops and seminars. MSMEs can apply alone or along with a design company or a design consultant/academic institute for design projects by submission of a proposal to the Design Clinic Centre or through the internet by making an online application. Apply online at: www.dcmsme.gov.in/schemes/DesignClinic.htm
  • Whom to contact : JDC (Design Clinic),O/o DC, MSME, Ph : 011-23062394 & Email : bisariya.sanjay@nic.in
  • Description : The scheme advocates the use of energy efficient technologies (EETs) in manufacturing units so as to reduce the cost of production and adopt clean development mechanism.
  • Nature of assistance : Capacity building of MSME clusters for energy efficiency/clean development and related technologies. Funding support of up to 75% for awareness programmes, subject to maximum of Rs 75,000 per programme; Implementation of energy efficient technologies in MSME units 75% of actual expenditure for cluster level energy audit and preparation of model DPR; Setting up of Carbon Credit Aggregation Centres. 50% of actual expenditure subject to maximum Rs 1.5 lakh per DPR towards preparation of subsequent detailed project reports for individual MSMEs on EET projects; Encouraging MSMEs to acquire product certification / licenses from National / International bodies. 75% of the actual expenditure, subject to a maximum Rs 15; 25% of the project cost as subsidy by Government of India, balance amount to be funded through loan from SIDBI/banks/ financial Institutions. MSMEs are required to make the minimum contribution as required by the funding agency; 75% subsidy towards licensing of products to national/ international standards; ceiling Rs 1.5 lakh for obtaining product licensing/marking to National standards and Rs 2 lakhs for International standards.
  • Who can apply? : Expert organisations like PCRA, BEE, TERI, IITs, NITs, etc. State Govt. agencies like MITCON, GEDA, etc. Cluster/industry based associations of MSMEs. NGOs and Technical Institutions.
  • How to apply? : Obtain product certification from national standardisation bodies (like BIS and BEE) or international product certifications (CE, UL, ANSI, etc.). Applicant applies in the specified format (given in annexure-IV of scheme guidelines) along with required documents for re-imbursement of fees, forwarding it, to MSME-DI concerned. www.dcmsme.gov.in/schemes/TEQUPDetail.htm
  • Whom to contact : JDC (TEQUP), O/o DC, MSME, Ph : 011-23062394 & Email : bisariya.sanjay@nic.in
  • Description : The objective of the scheme scheme is to provide early stage funding to nurture innovative business ideas (new indigenous technology, processes, products, procedures, etc.) that could be commercialised in a year. The scheme provides financial assistance for setting up business incubators.
  • Nature of assistance : Funding support for setting up of ‘Business Incubators (BI)’: The cost may vary from Rs 4 to 8 lakh for each incubatee/idea, subject to overall ceiling of Rs 62.5 lakh for each BI. a) Upgradation of infrastructure Rs 2.50 lakh; b) Orientation/training Rs 1.28 lakh; c) Administrative expenses Rs 0.22 lakh; Total assistance per BI Rs 66.50 lakh
  • Who can apply? : Any individual or MSME with innovative ideas ready for commercialisation can apply to the host institution (e.g., IITs, NITs, technical colleges, research institutes, etc.) in order to obtain fund support. Any technical institution (as given in the EoI) that wants to become a host institution can apply to the office of the Development Commissioner-MSME or their nearest MSME-DI for funding support.
  • How to apply? : Application can be made by the technical institution desirous of becoming the host institution, once a Request for Proposal (RFP)/ Expression of Interest (EoI) is released. Any individual or MSME can apply directly to their nearest host institution. A list of host institutions is given on the website: http://www.dcmsme.gov.in/schemes/Institut ions_Detail.pdf
  • Whom to contact : JDC, O/o DC, MSME, Ph: 011-23062394 & Email : bisariya.sanjay@nic.in
  • Description : The scheme endeavours to sensitize and encourage MSEs to understand and adopt latest Quality Management Standards (QMS) and Quality Technology Tools (QTT).
  • Nature of assistance : Funding support for introduction of appropriate course modules in technical institutions through expert organisations. Funding support up to Rs 79,000/- per programmefor conducting QMS/QTT awareness campaign for MSEs through expert organisations. Funding support up to Rs 2.5 lakh per unitfor implementation of QMS andQTT in selected MSMEs through expert organisations. Funding support for conducting C-watch study for product having threat from foreign goods.
  • Who can apply? : Expert organisations like Quality Council of India (QCI), National Recruitment Board for Personnel and Training, Consultancy Development Corporation, National Productivity Council, Standardisation, Testing & Quality Certification (STQC, a Society under the Ministry of IT), IIQM (Indian Institute of Quality Management), Industry Associations that have taken active interest in QMS/QTT, Technical Institutions, Engineering Colleges, Tool Rooms and similar bodies and MSEs can apply for assistance under this scheme.
  • How to apply? : MSEs or clusters may contact Office of the DC- MSME. The DC office will finalise the MSME clusters for conducting the Awareness Programme on Quality Management Standards and Quality Technology Tools (QMS/QTT). Web link: www.dcmsme.gov.in/schemes/QmsQtt.htm
  • Whom to contact : JDC (QMS/QTT), O/o DC, MSME, Ph: 011-23062394 & Email : bisariya.sanjay@nic.in
  • Description : The purpose of the scheme is to enhance awareness among the MSMEs about Intellectual Property Rights, to take measures for protecting their ideas and business strategies. Effective utilisation of IPR tools by MSMEs would also assist them in technology upgradation and enhancement of their competitiveness.
  • Nature of assistance : Conducting awareness/sensitization programmes on IPR (Applicants in this case are MSME organisations and expert agencies) GoI assistance of Rs 1 lakh per awareness programme. Conducting pilot studies for selected clusters/groups of industries (Applicants in this case are MSME organisations, competent agencies and expert agencies). GoI assistance of Rs 2.5 lakh per pilot study. Funding support for conducting interactive seminars / workshops (Applicants in this case are MSME organisations and expert agencies). Funding support for conducting specialised training on IPR (Applicants – Expert agencies) Funding support in the form of Grant on Patent/GI Registration (Applicants in this case are MSME units and MSME organisations). Funding support for setting up IP Facilitation.
  • Who can apply? : Registered MSME units, association, consultancy firms, expert agencies etc.
  • How to apply? : Application forms for each of the components are provided along with scheme guidelines at: www.dcmsme.gov.in/schemes/IPRDetail.html
  • Whom to contact : JDC (IPR), O/o DC, MSME, Ph: 011-23062394 & Email : bisariya.sanjay@nic.in
  • Description : The scheme covers the following activities: a) Visit of MSME delegations to other countries in international exhibitions/ trade fairs, conferences/ summits/workshops etc. for exploring new areas of technology infusion/upgradation, joint ventures, improving market of MSMEs products, etc. b) Participation of MSME delegations in international exhibitions, trade fairs and buyer-seller meets in foreign countries. c) Holding international conferences/summits/workshops/seminars relating to MSME sector to be organized in India by the Industry Associations/ Government organizations. d) Holding/organising mega international exhibition or fair and international conferences/seminars/workshops, Joint Committee Meetings/Joint Working Group Meetings/Government to Government bilateral meetings with outer countries in India by Ministry of MSME or organizations under it. e) Sending a delegation of the Ministry of MSME to an International Exhibition/Fairs/Conference in foreign countries.
  • Nature of assistance : IC Scheme provides financial assistance on reimbursement basis for airfare, space rent, freight charges, advertisement & publicity charges and entry/registration fee on reimbursement basis in case of participation in international exhibitions/trade fairs.
  • Who can apply? : Government Institutions and Registered Industry Associations associated with promotion and development of MSME sector.
  • How to apply? : Applications for financial assistance can be sent in the prescribed form to the Director (International Cooperation), Ministry of MSME, Udyog Bhawan, New Delhi -110011.
  • Whom to contact : Director (IC), M/o MSME, Ph: 23063198, Fax: 23061756 & Email : gs.perni@nic.in
  • Description : The marketing assistance scheme provides assistance for the following activities: a) Organisation of exhibitions abroad and participation in international exhibitions/ trade fairs; b) Co-sponsoring of exhibitions organised by other organisations/industry associations/ agencies; c) Organising buyer-seller meets, intensive campaigns and marketing promotion activities.
  • Nature of assistance : (a).The maximum net budgetary support for participating in an international exhibition/trade fair would normally be restricted to an overall ceiling of Rs. 30 lakh per event (Rs. 40 lakh for Latin American countries). (b). The budget for organizing the Domestic Exhibitions/Trade Fair would depend upon the various components of the expenditure, i.e. space rental including construction and fabricating charges, theme pavilion, advertisement, printing material, transportation etc. However, the budgetary support towards net expenditure for organizing such exhibition/trade fair would normally be restricted to a maximum amount of Rs. 45 lakh. The corresponding budgetary limit for participation in an exhibition/trade fair shall be Rs. 15 lakh. (c). Financial assistance will be provided ranging from 25% to 95% of the Air-Fare and space rent to entrepreneurs on the basis of size and type of the enterprise. Financial assistance for co-sponsoring an event would be limited to 40% of the net expenditure, subject to a maximum amount of 5 lakh.
  • Who can apply? : MSMEs, Industry Associations and other organisations related to MSME sector are eligible to apply.
  • How to apply? : Applications/proposals seeking assistance under the scheme should be submitted to the Branch Manager of the nearest office of the National Small Industries Corporation, with full details and justification in support of the application.
  • Whom to contact : GM (Business Dev.), NSIC, Ph: 011-26311109 & Email : exhb@nsic.co.in
  • Description : The Procurement and Marketing support Scheme would cover the following activities: • To encourage Micro and Small Enterprises (MSEs) to develop domestic markets and promotion of new market access initiatives. • To facilitate market linkages for effective implementation of Public Procurement Policy for MSEs Order of 2012. • To educate MSMEs on various facets of business development. • To create an overall awareness about trade fairs, latest market technique and other such related topics etc.
  • Who can apply? : Individual Manufacturing/Service MSEs.
  • How to apply? : Eligible MSEs may submit their application online or system in place.
  • Whom to contact : Joint Development Commissioner, O/o DC, MSME, Nirman Bhawan, New Delhi, Tel.: 011- 23061091 & Email: mandeepkaur@ias.nic.in
  • Description : The assistance is provided to National level training institutions operating under the Ministry of MSME, namely, NIMSME, KVIC, Coir Board, Tool Rooms, NSIC & MGIRI in the form of capital grant for the purpose of creation and strengthening of infrastructure and support for entrepreneurship development and skill development training programmes. Assistance is also provided to existing State level EDIs for creation or strengthening/expansion of their training infrastructure.
  • Nature of assistance : Amount of assistance will not exceed the actual amount for strengthening/ expansion of the infrastructure required by the training institutions of this Ministry. Scale of maximum assistance to the State level EDIs will be restricted to Rs.2.5 crore in each case. Assistance for skill development programmes will be provided as per the prescribed rates.
  • Who can apply? : Institutions of Ministry of MSME and existing State level EDIs.
  • How to apply? : Organisations wishing to apply for assistance for creation or strengthening of infrastructure may send their applications to the Director/Deputy Secretary (EDI), Ministry of Micro, Small and Medium Enterprises, Udyog Bhawan, Rafi Marg, New Delhi – 110 011.
  • Whom to contact : Deputy Secretary (EDI), M/o MSME, Ph: 011- 23063198
  • Description : The Ministry of MSME has adopted cluster development approach for enhancing productivity and competitiveness as well as capacity building of MSEs. The Scheme supports financial assistance for establishment of Common Facility Centres (CFCs) for testing, training centres, R&D, Effluent Treatment, raw material depot, complementing production processes etc. and to create/upgrade infrastructural facilities (IDs) in the new/existing industrial areas/clusters of MSE’s such as power distribution network, water, telecommunication, drainage and pollution control facilities, roads, banks, raw materials, storage and marketing outlets, common service facilities and technological backup services for MSEs in the new/existing industrial estates/areas.
  • Nature of assistance : Hard interventions, i.e., setting up of CFCs with maximum eligible project cost of Rs 15.00 cr with GoI contribution of 70% (90% for special category States and for clusters with more than 50% women/micro/village/ SC/ST units). Infrastructure development in the new/ existing industrial estates/areas in which the maximum eligible project cost is Rs 10.00 cr, with GoI contribution amounting to 60% of project cost (80% for special category States and for clusters with more than 50% women/micro/SC/ST units).
  • Who can apply? : Clusters, Industrial associations/Consortia
  • How to apply? : Online applications can be filled at https://cluster.dcmsme.gov.in, Hardcopy of applications need to be sent through State Governments or their autonomous bodies or field institutes of the Ministry of MSME i.e., MSME- DIs. The proposals are to be approved by the Steering Committee of MSE-CDP.
  • Whom to contact : Director (CD), Office of Development Commissioner, MSME, Ph: 011-23062561 & Email : rk.rai@nic.in

Frequently Asked Questions (FAQs)

Most frequent questions and answers

Any entrepreneur having valid Aadhaar Number can apply for Udyam Registration with Below Criteria:

Enterprises engaged in the Manufacturring [production, processing or preservation of goods] and Services [whose investment in equipment (original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered) or as may be notified under the MSMED Act, 2006] as specified below:

  • A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 1 crore and Turnover does not exceed 5 crore;
  • A small enterprise is an enterprise where the investment in plant and machinery is between Rs. 1 crore to Rs. 10 crore and turnover is between Rs. 5 crore to Rs. 50 crore ;
  • A medium enterprise is an enterprise where the investment in plant and machinery is between Rs. 10 crore to Rs. 20 crore and turnover is between Rs. 50 crore to Rs. 250 crore .

In the interest of environment no physical copy of Udyam Registration Certificate will be issued. Government believes in paperless work.

At present Aadhaar Number is mandatory for issuance of Udyam Registration Certificate.

Enterprises engaged in the Manufacturring [production, processing or preservation of goods] and Services [whose investment in equipment (original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered) or as may be notified under the MSMED Act, 2006] as specified below:

  • A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 1 crore and Turnover does not exceed 5 crore;
  • A small enterprise is an enterprise where the investment in plant and machinery is between Rs. 1 crore to Rs. 10 crore and turnover is between Rs. 5 crore to Rs. 50 crore ;
  • A medium enterprise is an enterprise where the investment in plant and machinery is between Rs. 10 crore to Rs. 20 crore and turnover is between Rs. 50 crore to Rs. 250 crore .

Ministry implements a scheme called Credit Linked Capital Subsidy Scheme (CLCSS) for technology upgradation of Micro and Small enterprises in the country. Under the scheme, 15 per cent capital subsidy, limited to maximum of Rs 15 lakh (12 % prior to 29.09.2005 limited to maximum of Rs 4.8 lakh) is provided to the eligible MSEs for upgrading their technology with the well-established and improved technology as approved under the scheme. 48 products/sub-sectors have been approved under the CLCSS till date. If you are an MSE manufacturing a product and want to upgrade the technology of manufacturing the product with the well-established and improved technology as approved under the Scheme, then you may have to approach to the nodal agencies/eligible financial institution for sanction of term loan for purchase of eligible machinery.

The Ministry conducts various types of training programme through its various organisations for self employment as well as wage employment. The training programmes are primarily focused to promote self employment in the country. Thus all type of programmes have input which provide necessary information and skills to a trainee to enable him to establish his own micro or a small enterprises. The programmes include two week Entrepreneurship Development Programme (EDP), Six Week Entrepreneurship Skill Development Programme (ESDP). One weak Management Development Programme (MDP), One Day Industrial Motivation Campaign(IMC) etc. For Monitoring of the programme a web based system has been developed where coordinator of the programme is bound to feed all details of trainees including his photo and phone no. on the website. The same will be linked to the call centre of Ministry where real time feedback is obtained from trainees.

Priority sector lending include only those sectors, as part of the priority sector that impact large sections of the population, the weaker sections and the sectors which are employment-intensive such as agriculture, and Micro and Small enterprises. Detailed guidelines on Priority sector lending are available in RBI Master Circular.

Public sector banks have been advised to open at least one specialized branch in each district. The banks have been permitted to categorize their MSME general banking branches having 60% or more of their advances to MSME sector, as specialized MSME branches for providing better service to this sector as a whole. As per the policy package announced by the Government of India for stepping up credit to MSME sector, the public sector banks will ensure specialized MSME branches in identified clusters/centres with preponderance of small enterprises to enable the entrepreneurs to have easy access to the bank credit and to equip bank personnel to develop requisite expertise. Though their core competence will be utilized for extending finance and other services to MSME sector, they will have operational flexibility to extend finance/render other services to other sectors/borrowers.

The banks have been advised by RBI to put in place loan policies governing extension of credit facilities for the MSE sector duly approved by their Board of Directors Vide RBI circular; RPCD.SME & FS.BC.No.102/06.04.01/2008-09 dated May 4, 2009 ). Banks have, however, been advised to sanction limits after proper appraisal of the genuine working capital requirements of the borrowers keeping in mind their business cycle and short term credit requirement. As per Nayak Committee Report, working capital limits to SSI units is computed on the basis of minimum 20% of their estimated turnover up to credit limit of Rs.5crore. For more details paragraph 4.12.2 of the RBI Master Circular on lending to the MSME sector dated July 1, 2010 may please be seen.

Cluster based approach to lending is intended to provide a full-service approach to cater to the diverse needs of the MSE sector which may be achieved through extending banking services to recognized MSE clusters. A cluster based approach may be more beneficial (a)in dealing with well-defined and recognized groups (b) availability of appropriate information for risk assessment (c) monitoring by the lending institutions and (d) reduction in costs. The banks have, therefore, been advised to treat it as a thrust area and increasingly adopt the same for SME financing. United Nations Industrial Development Organisation (UNIDO) has identified 388 clusters spread over 21 states in various parts of the country. The Ministry of Micro, Small and Medium Enterprises has also approved a list of clusters under the Scheme of Fund for Regeneration of Traditional Industries (SFURTI) and Micro and Small Enterprises Cluster Development Programme (MSE-CDP) located in 121 Minority Concentration Districts. Accordingly, banks have been advised to take appropriate measures to improve the credit flow to the identified clusters. Banks have also been advised that they should open more MSE focused branch offices at different MSE clusters which can also act as counseling. Centres for MSEs. Each lead bank of the district may adopt at least one cluster (Refer circular RPCD.SME & NFS.No.BC.90/06.02.31/2009-10 dated June 29, 2010 )

With a view to facilitating credit flow to the MSME sector and enhancing the comfort-level of the lending institutions, the credit rating of MSME units done by reputed credit rating agencies and it should be encouraged. Banks are advised to consider these ratings as per availability and wherever appropriate structure their rates of interest depending on the ratings assigned to the borrowing SME units.

As per the extant guidelines, a Micro or Small Enterprise (as defined in the MSMED Act 2006) may be said to have become Sick, if Any of the borrower account of the enterprise remains NPA for three months or more. OR There is erosion in the net worth due to accumulated losses to the extent of 50% of its net worth during the previous accounting year. This criterion enables banks to detect sickness at an early stage and facilitate corrective action for revival of the unit.

As on March 2013 there are 2032 specialized MSME branches.

A composite loan limit of Rs.1 crore can be sanctioned by banks to enable the MSME entrepreneurs to avail of their working capital and term loan requirement through Single Window in terms of RBI Master Circular on lending to the MSME sector dated July 1, 2010. All scheduled commercial banks have been advised by our circular RPCD.SME & NFS. BC.No.102/06.04.01/2008-09 on May 4, 2009 that the banks which have sanctioned term loan singly or jointly must also sanction working capital (WC) limit singly (or jointly, in the ratio of term loan) to avoid delay in commencement of commercial production thereby ensuring that there are no cases where term loan has been sanctioned and working capital facilities are yet to be sanctioned. These instructions have been reiterated to schedule commercial banks on March 11, 2010.

The National Manufacturing Competitiveness Programme (NMCP) is the nodal programme of the Government to develop global competitiveness among Indian MSMEs. The Programme was initiated in 2007-08. This programme targets at enhancing the entire value chain of the MSME sector through the following schemes: (a) Lean Manufacturing Competitiveness Scheme for MSMEs;

(b) Promotion of Information & Communication Tools (ICT) in MSME sector;

(c) Technology and Quality Up gradation Support to MSMEs;

(d) Design Clinics scheme for MSMEs;

(e) Enabling Manufacturing Sector to be Competitive through Quality Management Standards (QMS) and Quality Technology Tools (QTT);

(f) Marketing Assistance and Technology Up gradation Scheme for MSMEs;

(g) Setting up of Mini Tool Room under PPP Mode;

(h) National campaign for building awareness on Intellectual Property Rights (IPR);

(i) Support for Entrepreneurial and Managerial Development of SMEs through Incubators.

(j) Bar Code under Market Development Assistance (MDA) scheme.

The TEQUP scheme envisages another activity, namely, Product Quality Certification. The main objective of this scheme is to encourage MSMEs to Acquire Product Certification Licenses from National / International Bodies, thereby improving their competitiveness. The primary objective of this activity is to provide subsidy to MSME units towards the expenditure incurred by them for obtaining product certification licenses from National / International standardization Bodies. Under this Activity, 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 for obtaining product licensing /Marking to National Standards and Rs. 2.0 lakh for obtaining product licensing /Marking to International standards. One MSME unit can apply only once under the scheme period.

Under the National Manufacturing Competitiveness Programme (NMCP) Scheme, one component is “Enabling MSME manufacturing sector to be competitive through Quality Management Standards/Quality Technology Tools (QMS/QTT)” was initiated in the XIth Five year plan. The main objective of the scheme is to sensitize and encourage MSEs to adopt latest Quality Management Standards/Quality Technology Tools (QMS/QTT) and to keep a watch on sectoral developments by undertaking the stated activities. The major activities under the Scheme are as: a) Introduction of appropriate course modules for technical institutions

b) Organizing awareness campaigns for micro & small enterprises.

c) Organising competition–watch (c-watch).

d) Implementation of quality management standards and quality technology tools in selected micro & small enterprises.

e) Monitoring international study missions.

The Ministry implements the Support for Entrepreneurial and Managerial Development of SME’s Through Incubators”. The main purpose of the scheme is to nurture innovative business ideas (new/indigenous technology, processes, products, procedures, etc), which could be commercialized in a year. Under the Scheme, financial assistance between 75% to 85% of the project cost upto maximum of Rs. 8 lakh per idea/unit, provided to Business Incubators (BIs). The BIs are also eligible to avail Rs. 3.78 lakh for infrastructure and training expenses for incubating 10 ideas. Any individual or Micro and Small Industries (MSEs) that has innovative business idea at near commercialisation stage can approach the Business Incubators approved under the scheme. Under the scheme, various institutions like Engineering Colleges, Management Institutions, Research labs, etc. that have in-house incubation facilities and faculty for providing handholding support to new idea/entrepreneur can apply in the prescribed application form.

Under the National Manufacturing Competitiveness Programme (NMCP) to enhance the competitiveness of the SMEs sector, O/o DC(MSME) is implementing a scheme “Building Awareness on Intellectual Property Rights (IPR)” for the MSME. The objective of the scheme is to enhance awareness of MSME about Intellectual Property Rights (IPRs) to take measure for the protecting their ideas and business strategies. Accordingly, to enable the MSME sector to face the present challenges of liberalisation, various activities on IPR are being implemented under this scheme.

The Ministry is implementing the Performance & Credit Rating Scheme, the main objective of the which is to provide a trusted third party opinion on the capabilities and creditworthiness of the MSEs so as to create awareness amongst them about the strengths and weakness of their existing operations. This is to provide them an opportunity to improve and enhance their organizational strengths and credit worthiness, so that they can access credit at cheaper rates and on easy terms. NSIC was appointed as nodal agency to implement the scheme on behalf of the Government. Rating under the scheme is being carried out through empanelled rating agencies i.e. Credit Rating Information Services of India Limited (CRISIL), Credit Analysis & Research Limited (CARE), Onicra Credit Rating Agency of India Ltd. (ONICRA), Small and Medium Enterprises Rating Agency of India Ltd. (SMERA), ICRA limited and Brickwork India Ratings. Under this Scheme, rating fee payable by the micro and small enterprises is subsidized for the first year only and that is subject to maximum of 75% of the fee or Rs. 40000/-, whichever is less.

Under the International Cooperation Scheme, financial assistance is provided on reimbursement basis to the State/Central Government organizations, industries/enterprises Associations and registered societies/trusts and organizations associated with MSME for deputation of MSME business delegation to other countries for exploring new areas of MSMEs, participation by Indian MSMEs in international exhibitions, trade fairs, buyer seller meet and for holding international conference and seminars which are in the interest of MSME sectors. Eligible beneficiary organizations can apply to the Ministry directly to avail the assistance under IC Scheme as per Scheme Guidelines.

With the enactment of the Micro, Small and Medium Enterprises Development (MSMED), Act 2006, for the goods and services supplied by the MSEME units, payments have to be made by the buyers as under:· The buyer is to make payment on or before the date agreed on between him and the supplier in writing or, in case of no agreement, before the appointed day. The agreement between seller and buyer shall not exceed more than 45 days.· If the buyer fails to make payment of the amount to the supplier, he shall be liable to pay compound interest with monthly rests to the supplier on the amount from the appointed day or, on the date agreed on, at three times of the Bank Rate notified by Reserve Bank.· For any goods supplied or services rendered by the supplier, the buyer shall be liable to pay the interest as advised at above.· In case of dispute with regard to any amount due, a reference shall be made to the Micro and Small Enterprises Facilitation Council, constituted by the respective State Government.To take care of the payment obligations of large corporate borrowers to MSEs, banks have been advised that while sanctioning/renewing credit limits to their large corporate borrowers (i.e. borrowers enjoying working capital limits of Rs. 10 crore and above from the banking system), to fix separate sub-limits, within the overall limits, specifically for meeting payment obligations in respect of purchases from MSEs either on cash basis or on bill basis. Banks are also advised by RBI to closely monitor the operations in the sub-limits, particularly with reference to their corporate borrowers’ dues to MSE units by ascertaining periodically from their corporate borrowers, the extent of their dues to MSE suppliers and ensuring that the corporate pay off such dues before the ‘appointed day’ /agreed date by using the balance available in the sub-limit so created. In this regard the relevant RBI circular; IECD/5/08.12.01/2000-01 dated October 16, 2000(reiterated on May 30, 2003, vide circular No. IECD.No.20/08.12.01/2002-03 ) available on RBI website.

After filing online Udyam Registration application form, Udyam Registration Certificate will be issued within 7 days at email.

Every application will be approved. No application will be rejected. Application will be approved on the basis of information provided by applicant.

There is no difference between MSME Registration and SSI Registration. Earlier MSME Registration was known as SSI Registration.

The Ministry of MSME, Government of India and SIDBI set up the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) with a view to facilitate flow of credit to the MSE sector without the need for collaterals/ third party guarantees. The main objective of the scheme is that the lender should give importance to project viability and secure the credit facility purely on the primary security of the assets financed. The Credit Guarantee scheme (CGS) seeks to reassure the lender that, in the event of an MSE unit, which availed collateral- free credit facilities, fails to discharge its liabilities to the lender, the Guarantee Trust would make good the loss incurred by the lender up to 85 % of the outstanding amount in default.

The Ministry is implementing the Micro and Small Enterprises – Cluster Development Programme (MSE-CDP) wherein support is provided for Diagnostic Study; Soft Interventions like general awareness, counseling, motivation and trust building, exposure visits, market development including exports, participation in seminars, workshops and training programmes on technology upgradaion etc; Hard Interventions like setting up of Common Facility Centers (Common Production/Processing Centre, Design Centre, Testing Centre etc.) and creation/upgradation of infrastructural facilities in the new/existing industrial areas/ clusters of MSEs.

Tool Rooms are equipped with state-of-the-art machinery & equipment. They are engaged in designing and manufacturing of quality tools, which are necessary for producing quality products, and improve the competitiveness of MSMEs in national and international markets. They also conduct training programmes to provide skilled manpower to industries specially MSMEs. The placement of trainees trained in Tool Room is more than 90%. There are 18 Autonomous Bodies (10 MSME Tool Rooms and 8 Technology Development Centres) under DC (MSME).

In terms of RBI circular RPCD.SME&NFS.BC.No.79/06.02.31/2009-10 dated May 6, 2010 , banks are mandated not to accept collateral security in the case of loans upto Rs 10 lakh extended to units in the MSE sector. Further, in terms of RBI circular RPCD/PLNFS/BC.No.39/06.02.80/2002-04 dated November 3, 2003 , banks may, on the basis of good track record and financial position of MSE units, increase the limit of dispensation of collateral requirement for loans up to Rs.25 lakh with the approval of the appropriate authority.All scheduled commercial banks that are public/private sector banks and RRbs/NSIC/SIDBI/NETFI are the member lending institutions. (MLI) List of banks offering loans is mentioned below;List of Bank’s MSME Care Centres1.Allahabad Bank2.Bank of Baroda3.O.B.C.4.Andhra Bank5.State Bank of Bikaner & Jaipur6.State Bank of Hyderabad7.Bank of India8.Bank of Maharashtra9.State Bank of Travancore10.Canara Bank11.Dena Bank12.Indian Bank13.I.O.B.14.Punjab & Sind Bank15.P.N.B.16.Syndicate Bank17.UCO Bank18.Union Bank of India19.United Bank of India20.Vijaya Bank21.State Bank of Mysore22.Corporation Bank23.I.D.B.I.24.State Bank of Patiala25.State Bank of India26.Central Bank of India27.State Bank of IndoreLinks of State Level Bankers’ Committees contact address1.SLBC Rajasthan2.SLBC Bihar3.SLBC U.P.4.SLBC Orissa5.SLBC Andhra Pradesh6.SLBC J&K7.SLBC Gujarat8.SLBC West Bengal9.SLBC Kerala10.SLBC Jharkhand11.SLBC Himachal PradeshFee for Guarantee: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. For loans up to Rs.5 lakh, the one-time guarantee fee and annual service fee is 1% and 0.5% respectively. Further, for loans in the North-East Region, the one-time guarantee fee is only 0.75%.

In terms of RBI circular, banks are mandated not to accept collateral security in the case of loans The Ministry is implementing the ISO: 9001/14001/HACCP Certification Reimbursement Scheme for Micro & Small Enterprises (MSEs) for reimbursement of certification expenses, only to those MSEs which have acquired Quality Management Systems (QMS)/ISO 9001 and /or Environment Management Systems (EMS)/ ISO14001and / or Food Safety Systems (HACCP) Certification. Under the scheme provides reimbursement of 75% of the certification expenses up to a maximum of Rs.75,000/- (Rupees seventy five thousand only) to each unit as one-time reimbursement only to those MSEs which have acquired Quality Management Systems (QMS)/ISO 9001 and /or Environment Management Systems (EMS)/ ISO14001and / or Food Safety Systems (HACCP) Certification.

The Ministry is implementing the Assisting to Training Institutions Scheme which envisages financial assistance for establishment of new institutions (EDIs), strengthening the infrastructure of the existing EDIs and for supporting entrepreneurship and skill development activities. The main objectives of the scheme are development of indigenous entrepreneurship from all walks of life for developing new micro and small enterprises, enlarging the entrepreneurial base and encouraging self-employment in rural as well as urban areas, by providing training to first generation entrepreneurs and assisting them in setting up of enterprises. The assistance shall be provided to these training institutions in the form of capital grant for creation/strengthening of infrastructure and programme support for conducting entrepreneurship development and skill development programmes.

Are there any targets prescribed for lending by banks to MSMEs? As per extant policy, certain targets have been prescribed for banks for lending to the Micro and Small enterprise (MSE) sector. In terms of the recommendations of the Prime Minister’s Task Force on MSMEs banks have been advised to achieve a 20 per cent year-on-year growth in credit to micro and small enterprises, a 10 per cent annual growth in the number of micro enterprise accounts and 60% of total lending to MSE sector as on preceding March 31st to Micro enterprises. In order to ensure that sufficient credit is available to micro enterprises within the MSE sector, banks should ensure that: 40 per cent of the total advances to MSE sector should go to micro (manufacturing) enterprises having investment in plant and machinery up to Rs. 10 lakh and micro (service) enterprises having investment in equipment up to Rs. 4 lakh ; 20 per cent of the total advances to MSE sector should go to micro (manufacturing) enterprises with investment in plant and machinery above Rs. 10 lakh and up to Rs. 25 lakh, and micro (service) enterprises with investment in equipment above Rs. 4 lakh and up to Rs. 10 lakh. Thus, 60 per cent of MSE advances should go to the micro enterprises.

Credit rating is not mandatory but it is in the interest of the MSE borrowers to get their credit rating done as it would help in credit pricing that is cost of funds (interest and other charges etc.) of the loans taken by them from banks.

A viable/potentially viable unit may apply for a debt restructuring if it shows early stage of stickiness. In such cases the banks may consider to reschedule the debt for repayment, consider additional funds etc. A debt restructuring mechanism for units in MSME sector has been formulated and advised to all commercial banks. The detailed guidelines have been issued to ensure restructuring of debt of all eligible small and medium enterprises. Prudential guidelines on restructuring of advances have also been issued which harmony the prudential norms over all categories of debt restructuring mechanisms (other than those restructured on account of natural calamities). The relevant circulars in this regard are circular DBOD.BP.BC.No.34/21.04.132/2005-06 dated September 8, 2005 and circularDBOD.No.BP.BC.37/21.04.132/2008-09 dated August 27, 2008 which are available on our website www.rbi.org.in.

No. If a sick unit is found potentially viable it can be rehabilitated by the banks. The viability of the unit is decided by banks. A unit should be declared unviable only if such a status is evidenced by a viability study.

The decision on viability of the unit should be taken at the earliest but not later than 3 months of the unit becoming sick under any circumstances. The following procedure should be adopted by the banks before declaring any unit as unviable: A unit should be declared unviable only if the viability status is evidenced by a viability study. However, it may not be feasible to conduct viability study in very small units and will only increase paperwork. As such for micro (manufacturing) enterprises, having investment in plant and machinery up to Rs. 5 lakh and micro (service) enterprises having investment in equipment up to Rs. 2 lakh, the Branch Manager may take a decision on viability and record the same, along with the justification. The declaration of the unit as unviable, as evidenced by the viability study, should have the approval of the next higher authority/ present sanctioning authority for both micro and small units. In case such a unit is declared unviable, an opportunity should be given to the unit to present the case before the next higher authority. The modalities for presenting the case to the next higher authority may be worked out by the banks in terms of their Board approved policies in this regard The next higher authority should take such decision only after giving an opportunity to the promoters of the unit to present their case. For sick units declared unviable, with credit facilities of Rs. 1 crore and above, a Committee approach may be adopted. A Committee comprising of senior officials of the bank may examine such proposals. This is expected to improve the quality of decisions as collective wisdom of the members shall be utilized, especially while taking decision on rehabilitation proposals. The final decision should be communicated to the promoters in writing. The above process should be completed in a time bound manner and should not take more than 3 months.

The Ministry implements the “Technology and Quality Upgradation Support to Micro, Small and Medium Enterprises (TEQUP)” which focuses on two important aspects, namely, enhancing competitiveness of MSME sector through Energy Efficiency and Product Quality Certification. The basic objective of this scheme is to encourage MSMEs in adopting energy efficient technologies and to improve product quality of manufacturing in MSMEs. It is a well-known fact that energy consumption is a significant component in the cost structure of almost any manufacturing/ production activity. Adopting energy efficient technologies curtails the cost of energy there by reducing production cost and increasing competitiveness. Under this scheme, a capital subsidy of 25% of the project cost subject to a maximum of Rs. 10.00 lakh shall be provided to the registered MSME units. While 25% of the project cost will be provided as subsidy by the Government of India, the balance amount is to be funded through loan from SIDBI/banks/financial institutions. The minimum contribution as required by the funding agency will have to be made by the MSME unit.

The Ministry implements the Design Clinic Scheme for Design Expertise to Micro, Small and Medium Enterprises (MSME) Sector is to improve the design of the product to meet global challenges and compete with similar products domestically and internationally. It is launched to benefit MSMEs by creating a dynamic platform to provide expert solutions to real time Design problems and add value to existing products. The goal of this scheme is to help MSME manufacturing industries move up the value chain by switching the production mode from original equipment manufacturing to original design manufacturing and hence original brand manufacturing. In the Design Clinic scheme, the value additions to an idea or a concept are imparted through interaction at a lesser cost to a specific industry/sector. The expected outcome of such interventions is new product development by design improvement and value addition for existing products.

Yes. After the notification dated 18-09-2015,filing of EM-I/II by States/UTs should be discouraged and instead all efforts be made to popularize the filing of UAM on the portal.

It is clarified that once the UAM has been notified dated 18-09-15, there cannot be a different cut-off date announced for adopting UAM. However, in order to maintain continuity, the cases of EM-I/II filing under process till 18-09-2015 may be accepted.

The Ministry implements the Marketing Assistance scheme through National Small Industries Corporation (NSIC) Limited for providing marketing support to MSMEs. The main objectives of the scheme is to enhance the marketing competitiveness of MSMEs; to provide them a platform for interaction with the individual/institutional buyers; to update them with prevalent market scenario and to provide them a form for redressing their problems. MSMEs are supported under the Scheme for capturing the new market opportunities through organising/ participating in various domestic & international exhibitions/ trade fairs, Buyer-Seller meets intensive-campaigns and other marketing events.

As part of the financial sector liberalization, all credit related matters of banks including charging of interest have been deregulated by RBI and are governed by the banks’ own lending policies. With a view to enhancing transparency in lending rates of banks and enabling better assessment of transmission of monetary policy, all scheduled commercial banks had been advised in terms of RBI circular; DBOD.No.Dir.BC.88/13.03.00/2009-10on April 9, 2010 to introduce the Base Rate system w.e.f. July 1, 2010. Accordingly, the Base Rate System has replaced the BPLR (Bank’s prime Lending Rate) system with effect from July 1, 2010. All categories of loans should henceforth be priced only with reference to the Base Rate.

Viable / potentially viable MSE units/enterprises, which turn sick in spite of debt re-structuring, would need to be rehabilitated and put under nursing. It will be for the banks/financial institutions to decide whether a sick MSE unit is potentially viable or not. The rehabilitation package should be fully implemented by banks within six months from the date the unit is declared as potentially viable/viable. During this six months period of identifying and implementing rehabilitation package banks/FIs are required to do “holding operation” which will allow the sick unit to draw funds from the cash credit account at least to the extent of deposit of sale proceeds. The relevant circular on rehabilitation of sick units is RPCD.CO.MSME & NFS.BC.40/06.02.31/2012-2013 dated November 1, 2012 is available on our website.

Scheduled commercial banks have been advised in terms of our circular RPCD.SME&NFS. BC.No.102/06.04.01/2008-09 dated May 4, 2009 to put in place a non -discretionary One time Settlement scheme duly approved by their Boards. The banks have also been advised to give adequate publicity to their OTS policies.

The Ministry implements the Rajiv Gandhi Udyami Mitra Yojana (RGUMY), objective of which is to provide handholding support and assistance to the potential first generation entrepreneurs, who have already successfully completed Entrepreneurship Development / Skill Development Training. Selected lead agencies i.e ‘Udyami Mitras’, provide information and guidance to first generation entrepreneurs regarding various promotional schemes of the Government, procedural formalities required for setting up and running of the enterprises and help them in accessing Bank credit etc. A ‘Udyami Helpline’ (a Call Centre for MSMEs) with a toll free No. 1800-180-6763 has also been set up to assist the entrepreneurs.KEY WORDSCredit Guarantee Capital Subsidy Cluster Development Skill DevelopmentTool Rooms Manufacturing Competitiveness Lean Manufacturing Design Clinics Quality Management Standards (QMS) Quality Technology Tools (QTT);Marketing Assistance on Intellectual Property Rights (IPR); Business IncubatorsBar Code Energy ConservationISO certificationCredit RatingInternational Cooperation Marketing Marketing Assistance.

Type of firmThe person whose Aadhaar number is required
Proprietorship firmProprietor
Partnership firmManaging partner
Hindu Undivided FamilyKarta
Company or a Co-operative Society or a Trust or a Limited Liability PartnershipAuthorized signatory

Bank’s lending to the Micro and Small enterprises engaged in the manufacture or production of goods specified in the first schedule to the Industries (Development and regulation) Act, 1951 and notified by the Government from time to time is reckoned for priority sector advances. However, bank loans up to Rs.5 crore per borrower / unit to Micro and Small Enterprises engaged in providing or rendering of services and defined in terms of investment in equipment under MSMED Act, 2006 are eligible to be reckoned for priority sector advances. Lending to Medium enterprises is not eligible to be included for the purpose of computation of priority sector lending. Detailed guidelines on lending to the Micro, Small and Medium enterprises sector are available in our Master Circular no. RPCD.MSME & NFS.BC.No.5/06.02.31/2013-14 dated July 1, 2013 . The Master circulars are issued by RBI, to banks, on various matters are available on RBI website www.rbi.org.in and updated in July each year.

Banks provide following services to the MSE entrepreneurs:Rural Self Employment Training Institutes (RSETIs)At the initiatve of the Ministry of Rural Development (MoRD), Rural Self Employment Training Institutes (RSETIs) have been set up by various banks all over the country. These RSETIs are managed by banks with active co-operation from the Government of India and State Governments. RSETIs conduct various short duration (ranging preferably from 1 to 6 weeks) skill upgradation programmes to help the existing entrepreneurs compete in this ever-changing global market. RSETIs ensure that a list of candidates trained by them is sent to all bank branches of the area and co-ordinate with them for grant of financial assistance under any Govt. sponsored scheme or direct lending.Financial Literacy and consultancy support: Banks have been advised to either separately set up special cells at their branches, or vertically integrate this function in the Financial Literacy Centres (FLCs) set up by them, as per their comparative advantage. Through these FLCs, banks provide assistance to the MSE entrepreneurs in regard to financial literacy, operational skills, including accounting and finance, business planning etc. (Refer circular RPCD.MSME & NFS.BC.No.20/06.02.31/2012-13 dated August 1, 2012 ) Further, with a view to providing a guide for the new entrepreneurs in this sector, a booklet titled “Nurturing Dreams, Empowering Enterprises – Financing needs of Micro and Small Enterprises – A guide” has been launched on August 6, 2013 by the Reserve Bank. The booklet has been placed on our website www.rbi.org.in under the following path & URL: RBI main page – Financial Education – Downloads – For Entrepreneurs (http://rbi.org.in/financialeducation/FinancialEnterprenure.aspx)

The existing enterprises registered either under EM-Part – II or UAM or registered with any other organization under the Ministry of Micro, Small and Medium Enterprises are required to register again on the Udyam Registration Portal. Such enterprises are required to apply and obtain Udyam Registration on or after 1st July 2020.

The enterprises registered prior to 30th June 2020 should note the following points-

  • Such enterprises shall be re-classified based on the revised criteria notified under notification dated 26th June 2020;
  • Such enterprises registered prior to 30th June 2020 shall be valid only till 31st March 2021.

The Ministry implements the Information and Communication Technology (ICT) scheme to encourage and assist Indian MSMEs to adopt ICT Tools and Applications in their production and business processes, and thereby improve their productivity and competitiveness in National and International Market.