Incentives to Micro, Small & Medium Enterprises

Incentives to Micro, Small & Medium Enterprises
  1. What is MSME:

MSME stands for Micro, Small and Medium Enterprises.

  1. Eligibility Criteria

The classification of units under micro, small & medium category is made based upon their turnover and investment criteria as under

Particulars Micro Small Medium
Investment Criteria < 1 Cr < 10 Cr < 100 Cr
Turnover Criteria < 5 Cr < 50 Cr < 250 Cr
  1. Importance of MSME Segment in Indian Economy:
  • Large scale employment generation by MSME segment for the unskilled, semi-skilled and skilled labour force and thus have substantially contributed towards the social & economic growth of the lower & the lower middle segment of the society.
  • Has played a crucial and decisive role in the social and economic development of India.
  1. Technological advancement Support to MSME Units:-
  • Establish 18 Technology Centre (TCs) by upgrading the tool rooms and Technology Development Centre and 15 new Technology Development Centres are under development. They give access to the advanced technologies, provide technical advisory and provide technical training to the labour employed in MSMEs.
  • Introduced Incubation Schemes to provide an opportunity to the innovators for the development and nurture their innovative ideas and then to put these ideas into the production of new product and services.
  • Provides Technological advancement to the MSME by its scheme such as Technology Upgradation and Quality Criteria, Credit Linked Capital, Subsidy for Technology Upgradation. Science & Technology Scheme for Coir etc.
  • Provide awareness for the protection of inventions, ideas and their Intellectual Property Rights (IPR).
  1. Incentives to MSME Segment:
  • Collateral Free Bank Loans
  • Subsidy on Patent Registration
  • Overdraft Interest Rate Exemption
  • Industrial Promotion Subsidy Eligibility
  • Protection against delayed Payments
  • Electricity at concessional rates.
  • ISO Certification Charges Reimbursement
  • Venture Capital / Seed Capital is available from SIDBI for MSMEs