Awards, Competitions, Funding Grants

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 :

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