A

PRESENTATION

ON

SCHEMES / PROGRAMMES
OF
MINISTRY OF MSME
in
Uttar Pradesh
1
 Growth of MSEs in Uttar Pradesh
Year / Stat. 2004-05 2005-06 2006-07 Growth
rate (%)
No. Of units 1938524 2027020 2116791 28.98

Employment 1219059 1267525 1319395 26.67

Investment 21858 23407 24852 47.34

(Rs. Cr.)

Production 40513 46927 55153 117.26

(Rs. Cr.)
2
 IMPORTANT SCHEMES
• Credit Guarantee Scheme
• Credit Linked Capital Subsidy Scheme
• ISO-9000/14001 /HACCP Assistance
• Integrated Infrastructural Development
• Micro and Small Enterprises Cluster
Development Programme
• Technology Development Centres
3
 Credit Guarantee Fund Scheme for
Micro and Small Enterprises
• Launched on 30 August 2000 and became
operational with effect from 1 January, 2001

• Operated by the CGTMSE

• Provides guarantees to MLIs for loans sanctioned

without collateral and/or third party guarantee up to
Rs. 50 lakh

• Guarantee cover upto 80%

4
 Proposals approved for U. P . under CGS

2005-06 2006-07 2007-08

Proposals 1055 1109 1539

Approved

Loan 2672.30 3636.91 5166.15

Amount
(In lakh)
5
 Credit Linked Capital Subsidy Scheme
(CLCSS)
• Technology upgradation of MSEs

• Nodal Agencies & PLIs--- SIDBI,

NABARD, SBI, Canara Bank, BOB, PNB,
BOI, Andhra Bank, SBBJ, , etc.

• Provide 15% capital subsidy for improved

technology --- loan up to Rs.100 lakh

• Coverage :- 48 products/sub-sectors
6
 Units Assisted
(as on 31 March 2008)

Units assisted Amount reimbursed

(Rs. Cr.)

All India 6600 229

180 4.11
UP

7
 ISO-9000/14001 /HACCP Scheme
• Reimbursement to the extent of 75% of the
expenditure (max. Rs.75000)

• All MSEs that have filed EM eligible

• All India :
Units Assisted : 17067
Amount Disbursed : Rs. 84.99 Cr.

8
. No. Of beneficiaries in U P 1318
 Integrated Infrastructural
Development (IID) Scheme

• Provide developed sites with basic

infrastructural facilities like power, water,
drainage, roads, common facilities, etc

• Project cost --Rs. 5 crore

•Central Government provides 40 percent

grant up to a maximum of Rs. 2 Cr.
9
 Integrated Infrastructural Development
(IID) Scheme
(Contd.)

• 106 projects sanctioned

• Scheme also provides for upgradation of

infrastructure in old industrial estates

• Subsumed in MSE-CDP

10
 IID Centres in Uttar Pradesh
S IID Centre Implementing Project GOI Status
No. Agency Cost Grant
(in Cr.) (in Cr.)
1 Bhadohi BIDA 5.94 2.00 Completed

2 Banther UPSIDC 5.50 1.83 Completed

(Unnao)

3. Kosi-Kalan UPSIDC 7.00 1.62 Completed

(Mathura)

4. Etah UPSIDC 5.15 1.79 Completed

5 Kursi Rd. UPSIDC 5.06 1.22 Completed

(Barabanki)

6 Baghpat UPSIDC 5.48 1.30 Completed

7 Masoori UPSIDC 5.09 1.25 Completed

(Ghaziabad)

8 Ram Nagar UPSIDC 5.67 1.17 Under progress

11
(Chandouli)
 Micro and Small enterprises Cluster Development
Programme (MSE-CDP)
• Includes diagnostic study, trust building, development of skills,
marketing & export, technology upgradation of enterprises,
formation of consortia, setting up CFCs, etc.

• 386 clusters taken up for development

• Guidelines revised in March 2006 to

i) Raise the project cost to Rs 10 Cr. and GOI assistance
up to 80%
ii) Introduce PPP mode
iii) Enable State Governments/Agencies/SPVs to implement
projects
iv) Enable assistance for infrastructure upgradation
• Special measures for women-owned enterprises 12
 Clusters Assisted Uttar Pradesh in the Last 2 Years
Implementing Clusters Amount Clusters Amount
Agency taken for soft Sanctioned taken for sanctioned
interventions (2007-08) diagnostic (2007-08)
studies
Government of 09 19.35 (Amount
U.P sanctioned in
2006-07)
47 (2007-08) Under Process
MSME-DI Kanpur 06 9.40 05 2.50
MSME-DI 02 6.28 0 -
Allahabad
MSME-DI Agra - - 03 1.50
MSME TDC - - 01 2.25
Firizabad
NIESBUD - 07 15.75
NIMSME 22 37.12
CIPET Lucknow 03 13
5.06
 MSME Technology Developmentt Centres in U
P
-Assistance to MSEs in product and process development
-Testing, calibration and common facility services
-Skill development training programmes
Name-Consultancy
of Research services
Number of persons Number of units
Institute trained in 2007-08 benefited
PPDC, Agra 913 1274
CDGI, Ferozabad 146 542
FFDC, Kannauj 2225 1015
PPDC, Meerut 665 506
CFTI Agra 3079 462
14
 NATIONAL MANUFACTURING
COMPETITIVENESS PROGRAMME (NMCP)

• Formulation of NMCP announced in 2005-06 Budget, to

support MSMEs
• Its Role is to :
 Ensure MSME Sector Grows at a Healthy Rate
 Draft ‘National Strategy for Manufacturing’
• Ten Schemes drawn up under NMCP at Rs. 956 crore
• Implementation of Schemes to be in PPP Mode
• Programme deals with Firm-Level Competitiveness,
addressing issues of Competitiveness against Global
Challenges
15
 NATIONAL MANUFACTURING
COMPETITIVENESS PROGRAMME - COMPONENTS
Full Name of the Scheme Short Name

• Marketing Support/Assistance to MSMEs BAR CODE

• Support for Entrepreneurial and Managerial Development
of MSMEs INCUBATORS
• Enabling manufacturing sector to be competitive through
quality management standard and quality technology tools QMS/QTT
• National Campaign for Investment in Intellectual Property IPR
• National Programme on Application on Lean Manufacturing LEAN
• Mini Tool Rooms proposed to be set up by Ministry of MSME MTR
• Promotion of ICT in Indian Manufacturing Sector ICT
• Technology and Quality Upgradation support for MSMEs TECH UP
• Design Clinic Scheme to bring design expertise to the
Manufacturing sector DESIGN
• Marketing Assistance/SMEs and technology upgradation
activities - Ministry of SSI in co-operation with TIFAC/CSIR C WATCH

16
 NMCP – New Activities
(Over next 4 years)
Rs. Crore
No Name of the 4 years 2008-09
Component Total Project Cost GOI Share GOI Share (RE)
1 BAR CODE 1.50 1.50 0.20
2 INCUBATORS 79.45 66.50 8.00
3 QMS / QTT 50.00 40.00 7.00

4 IPR 55.00 50.00 8.00

5 LEAN 280.80 246.00 20.00
6 MTR 210.00 135.00 20.00
7 ICT Opt. I * 207.00 104.00 6.00
Opt. II 100.00 60.00 6.00
8 TECH UP 93.50 78.60 10.00
9 DESIGN 50.00 41.00 5.00
10 C WATCH 53.00 26.50 4.00
TOTAL 973.25 745.10 88.20
17
* Option I is kept on hold with TPC Rs. 1080.25 cr, GOI Share Rs. 789.10 cr and RE Rs. 88.20 cr.
 STATUS OF NMCP SCHEMES
S. Name of Scheme EFC RE BE
No. (Cost of Scheme) Clearance 2007- 08 2008 - 09
Rs. in Crore

i Bar Coding (1. 5) Operational 0.1 0.20

from 01/6/07

ii Incubators (79.45)  0.1 8.00

iii QMS / QTT (50)  0.1 7.00
iv IPR (55)  0.1 8.00
v Lean (280.80)  0.1 20.00
vi MTR (210)  0.1 20.00
vii ICT (100) 0.1 6.00
viii TECH UP (93.50)  0.1 10.00
ix Design (50) 0.1 5.00
x C Watch (53) 0.1 4.00
18
Total 01.0 88.20
 TECHNOLOGY STRATEGY: Upcoming

BAR CODE
• Existing MDA Scheme modified to popularize Bar
Coding
• Bar Coding an effective Tool to improve
marketability
• Reimbursement allowed :
One Time Registration Fee
75% of Annual Fee for 1st 3 years (Bar Code
Certificate)
• 1400 SMEs to be Benefitted during 11th FY Plan
19
 TECHNOLOGY STRATEGY: Upcoming 1/2

INCUBATORS

• Object :
Assist Incubation of Innovative Ideas
Encourage Ideas to Become SMEs

• Total Project cost – Rs. 79.45 cr

GOI Share – Rs. 66.50 cr
2008-09 BE – Rs. 8.00 cr

20
 TECHNOLOGY STRATEGY: Upcoming 2/2

INCUBATORS

• 100 BIs to be Located in R&D Institutes @ 25 p.a

• Govt. Grant (Max. 85%) = Rs. 4 to 8 lakhs per Idea
• Each BI to Assist 10 Ideas / Units
• R&D Institutions and BIs to Suggest & Nurture
• Can also be Dovetailed with other Schemes
• Tie Up ‘Successes’ with VC / Angel Funds

• Publicity & Proposals Essential for Success

21
 Mini Tool Rooms
•Establishment of MTRs inPPP mode
•Model 1: pvt enterprise led-viability gap funding –
40%
•Model 2: pvt enterprise +State Govt-viability gap
funding-40%
•Model 3: state govt. entity(land+bldg~6 cr)
+Centre—9 cr
•T.A.s----RFPs to issue
•GoI allocation-Rs 135---establish min. 15 MTRs 22
 TECHNOLOGY STRATEGY: Upcoming 1/3

QUALITY MGT. SYSTEMS / TOOLS

( QMS / QTT )
• MSME’s ISO Reimbursement Scheme Successful
• QMS: ISO-22000 (Food), ISO-18000 (Health)
etc.
• QTT: Introduce proven Tools like 6-Sigma, 5-S,
Kaizen, TPM, TQM etc.
• Total Project cost – Rs. 50.00 cr (GoI = 80%)
2008-09 BE – Rs. 7.00 cr
• EFC has Cleared. Guidelines being Finalized 23
 Schemes of NSIC

• Marketing Support

• NSIC’s Single Point Registration Scheme

(SPRS)

• Technology Support

• Training Programmes

24
 MARKETING SUPPORT

1. Single Point Registration Scheme

(SPRS) under Govt. Stores
Purchase Programme
2. Consortia & Tender Marketing
3. Raw material Distribution
4. Exhibitions & Buyer Seller Meets

25
 Consortia and Tender Marketing

1. NSIC submits bids on behalf of MSEs against

the tenders of Government Deptts/PSUs.
2. Orders are farmed out to MSEs for execution.
3. Raw material assistance is granted to such
units.
4. Bills are realized by NSIC for payment to
supplier MSEs.
5. Part payment upto 70% is made to supplier
MSEs before realization of bills

26
 Raw Material Distribution
1. NSIC distributes basic raw materials like
Aluminum, Copper and Iron & Steel to MSEs
in relatively smaller quantities and at
competitive rates

2. Tie ups with bulk Raw material

manufactures e.g NALCO, BALCO, IOC,
SAIL, RINL, Hindustan Zinc Ltd., Hindustan
Copper Ltd etc.
27
Exhibitions & Buyer Seller Meets

1. To help MSEs to exhibit their products in national and

International exhibitions

 About 60 exhibitions organised/participated in a year.

 Assiatance granted as per Government rules

i) Upto 60% concession on stall rental.

ii) Upto 75% reimbursement in fare
upto Rs.40,000/-.
iii) Freight reimbursement upto Rs.15,000/-
(Total Assistance not to exceed Rs.1.25 lac)
28
4. Buyer Seller Meets organized between
Govt. Deptts./ PSUs and MSEs.

5. Vendor development of Micro and Small

Enterprises for Govt. Deptts. / PSUs.

29
 TECHNOLOGY SUPPORT
NSIC offers small units the following technology
support services through its Technical Services
Centres and Extension Centres:

• Material equipment testing facilities through

accredited laboratories
• Training on Product design through CAD
• Common facility support in machining through CNC.
• Energy and environment services at selected centres
• Testing facility for electrical equipments
• Classroom and practical training for skill upgradation

30
TRAINING PROGRAMMES - Training
Courses conducted by NSIC Technical
Services Centres

Chennai Footwear Manufacturing, Electrical Gadgets

Maintenance, Motor Rewinding etc.

Howrah Refrigeration & AC repair, Welding, Fitter,

Automobile repairing, Material Testing etc.

Hyderabad Electronic assembly line, PC Hardware

Maintenance, High end software development
courses,
New Delhi CAD/CAM, CNC operations, Material testing,
Draftsman, Machinist, Turner, S/W courses etc.

Rajkot Energy Audit, Diesel Engine Testing, CNC

milling, Office Automation etc.
31
 Credit Support
1. Tie-ups with various banks for sanction of loans
(United Bank of India, UCO Bank, Oriental Bank of
Commerce, Bank of Maharashtra, Central Bank of
India, HSBC, AXIS Bank and YES Bank)
2. Help provided in preparation of credit proposals
of MSEs for onward submission to banks for
sanction of loan
3. Raw Material provided on easy credit terms
against Bank Guarantee and advance against
bills under tender marketing

32
 Coverage under KVI sector ---UP
•X Plan
•50 regd instns of KVIC/B
•15.06 lakh jobs (3.43 lakh in Khadi & 11.03 lakh
in VI)
•Production :Rs 7572.87 cr
•9062 projects assisted & 2.62 lakh jobs created
under REGP
33
 KVI sector in UP

• REGP: 1243 projects+ 31,000 jobs (07-Feb 08)

• ISEC –Subsidy –Rs 4.74 crore (06-07)
•Marketing Rebate –Rs 31.10 crore (06-07)
•PRODIP-57 projects (since 02)
•SFURTI-13 clusters (4 Khadi+ 9 VI)

34
 Merger of PMRY and REGP to
form PMEGP
• PMRY (introduced in 1993) extended to cover rural areas in 1994-95.
No more exclusivity of PMRY. There is overlap with REGP.
• Subsidy levels too low in PMRY – illustrated in separate slide/s.
• Higher unit cost of projects permissible under REGP (Rs.25 lakh as
against Rs.5 lakh under PMRY, that too from 2007-08)
• Many States have schemes with more attractive
benefits/assistance/interventions
– Some examples
• Bangla Swanirbhar Karma Sansthan Prakalpa (West Bengal)
• Sri Vajpayee Bankable Yojana (Gujarat)
• Chief Minister’s Rozgar Yojana (Uttar Pradesh)
• Recovery rates of Bank loans are much lower in PMRY (32-38%) as
compared to REGP (68 to 88%)
35
35
 Merger of PMRY and REGP to
form PMEGP
Salient Modifications
• Scheme Design
– ‘apriori’ allocation of targets of margin money subsidy
amongst marginalised sections of beneficiaries.
– Higher subsidy to lowest cost range of projects/units to
marginalised sections.
– Earmarking higher proportion of projects for
marginalised sections of beneficiaries.
– Projects costing above Rs.5 lakh can be set up in urban
areas.
36
36
 Merger of PMRY and REGP to
form PMEGP
Salient Modifications (…contd.)
Scheme Design (…contd.)
Subsidy as per cent of project cost to various categories of
beneficiaries in manufacturing sector.
Category of Existing PMEGP
Beneficiary PMRY* REGP Project cost ranges
(max. Upto Rs.2 Above Rs.2 lakh Above Rs.5 lakh
amount) lakh and upto Rs.5 and upto Rs.25
lakh lakh
General 12500 25% 25% 20% 10%
SC/ST 12500 30% 40% 30% 15%
OBC 12500 25% 30% 25% 10%
*Rs.15000/- per entrepreneurs for NER, HP, UA and J&K.
37
37
 Merger of PMRY and REGP to
form PMEGP
Salient Modifications (…contd.)
• Implementation & Monitoring
– Involvement of Gram Panchayats in publicity and
identification of beneficiaries at the grass root level.
– Provision for availing the services of NGOs/Voluntary
Organisations for improved targetting and selection of
beneficiaries.
– Updating of Project Profiles in consultation with senior
officers of participating Banks.
– Enlarging the scope of Entrepreneurship Development
Programme.
– Making the District Level Selection Committee collectively
responsible for ensuring proper selection of beneficiaries.
38
38
 Merger of PMRY and REGP to
form PMEGP
Salient Modifications (…contd.)
• Implementation & Monitoring
– Putting in place a uniform verification and reporting process of units set
up.
– Aggressive publicity of CGTMSME amongst Banks, beneficiaries and
State Government agencies.
– Providing more attractive marketing linkages by tying up the units with
exhibitions/fairs at District/Zonal/State/National level.
– Working out MIS and tracking system of monitoring the application of
beneficiaries, employment actually generated and performance of the
units.
– Monthly/Quarterly/Half Yearly Reviews of performance at
operational/Ministry level, with participation by Planning Commission in
the monitoring at Ministry level.
– Targets to be allotted to States/DICs (like in PMRY) - 40%, and KVIC (as
in REGP) – 60%. 39
39
 KVIC - XI Plan New Schemes

Workshed Scheme for Khadi Artisans

Objectives:
• To provide Worksheds to Khadi artisans for better work environment
• 38,000 khadi artisans proposed to be covered during the XI Plan.
• A maximum assistance of Rs. 25,000 (per unit) is proposed

Total Plan Outlay - Rs. 127 crore

• Government Grant - Rs. 95 crore

• Rs. 25 crore earmarked in BE 2008-09

Approval of Finance Ministry being obtained.

Guidelines are under preparation
40
40
 KVIC - XI Plan New Schemes
Strengthening of infrastructure of existing weak Khadi
Institutions and assistance for marketing infrastructure

Objectives:
• To assist 200 weak khadi institutions and 30 marketing outlets
for renovation and creating other marketing infrastructure
• To provide higher levels of wages to artisans and upliftment of
the Below Poverty Line (BPL) families in backward districts
through Khadi activities

Total Plan Outlay - Rs. 27.50 crore

Government Grant – Rs.26.025 crore
• Token provision of Rs. 1.00 crore earmarked in BE 2008-09.

SFC Note circulated.

41
41
 KVIC - XI Plan New Schemes
Scheme for Enhancing Productivity & Competitiveness
of Khadi Industries and Artisans
Objective:
• To assist 200 khadi institutions (including 50 new institutions
managed by SC/ST) towards enhancing their productivity and
competitiveness.
• To improve the productivity of the sector through replacement of
charkhas / looms, to add value to khadi products by encouraging
conversion from fabric to readymade garments and to make the
khadi industry competitive with more market driven, profitable
production and higher wages to artisans

Total Plan Outlay - Rs. 90 crore

• Government Grant – Rs. 83.25 crore
• Rs. 10 crore earmarked in BE 2008-09.

EFC has approved and recommended the scheme. 42

42
THANK YOU

43