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Promotion and capital subsidy schemes for MSME’s in India

Promotion of MSME

Under the Public Procurement Policy for Micro and Small Enterprises (MSE), minimum share of 20% of total annual purchases of Central Ministries/Departments/PSUs has been reserved for procurement by them from MSEs. Out of 20% share of annual procurement from MSEs, a share of 4% (i.e. 20% out of 20%) has been reserved for procurement from MSEs owned by SC/ST entrepreneurs. For enhancing participation of SC/ST in the Government procurement, every Central Ministries/Departments/PSUs have to organize special vendor development programmes, buyer seller meet, etc.

Ministries/Departments/PSUs have to report the goals set with respect to procurement from MSEs and achievement made thereto in their respective Annual Reports. Those Ministries/Departments/ PSUs which do not meet the mandatory goal of Public Procurement Policy for MSE would be required to provide reasons thereof to the Review Committee which is headed by Secretary, Ministry of Micro, Small & Medium Enterprises.

Ministry of Defence, on account of its unique nature, had reservations about implementation of Public Procurement Policy for MSEs. Keeping this in view, defence armaments imports, weapon systems, missiles, etc. have been kept out of purview of the Policy.

micro small medium enterprises

Subsidy on Loan to Micro, Small and Medium Enterprises

The Ministry of Micro, Small & Medium Enterprises (MSME) is operating a scheme for technology upgradation called, Credit Linked Capital Subsidy Scheme (CLCSS). Under the Scheme, capital subsidy at 15% of value of plant & machinery is provided on loans upto Rs.1 crore.

The scheme is implemented through 11 Nodal Banks/agencies such as Small Industries Development Bank of India (SIDBI), National Bank of Agriculture and Rural Development (NABARD), State Bank of India, Andhra Bank, State Bank of Bikaner & Jaipur, Bank of Baroda, Punjab National Bank, Canara Bank, Bank of India, Tamilnadu Industrial Investment Corporation Limited and the National Small Industries Corporation Ltd.

The Subsidy is provided to Micro and Small Enterprises across the Country for purchase of plant & machinery in the specified products groups/technologies approved under the Scheme.

For more information on these schemes visit : http://msme.gov.in

4 Comments

4 Comments

  1. bhim bardia

    January 8, 2012 at 1:56 pm

    sir, i want to know about the schmes which related to pipe line, cold storage & ware house all details with subsidy for harda district . sir , i am working as a bussiness facilitator in state bank of india in harda branch. so please provide me such details to aware farmers as well new opportiunity of bussiness

  2. H.C.Gangireddy

    March 8, 2012 at 10:14 pm

    sir, i want to know about the schmes which related to pipe line, cold storage & ware house all details with subsidy for harda district . sir , i am working as a bussiness facilitator in state bank of india in harda branch. so please provide me such details to aware farmers as well new opportiunity of bussiness

  3. Manisha Gaikwad

    March 22, 2012 at 3:23 pm

    sir i need business loan amount of rs 500000 (five Lacs only) what shall i do and what will you help me

  4. satendra sharma

    May 21, 2012 at 11:26 am

    Dear Sir,
    I am planning to start a new resort which is supposed to be run on 90% eco friendly resources and forr this I need to have an bio gas plant to run the kitchen and other requirements. How do I go for this and what all government agencies can help me out kindly advise.

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