|--------------Support Provided to MSME----------------|
Benefits Of MSME or Udyog Aadhaar
Q1. Subsidy on NSIC Performance and Credit ratings
Enterprises that have MSME Registration can avail Subsidy on NSIC Performance and Credit ratings as mentioned in the scheme.
Q2. Preference in procuring Government
Enterprises that have MSME Registration or udyog aadhaar have preference in procuring government tenders. Special treatment is given to MSME Registeration or udyog aadhaar organization while making application for government tenders.
Q3. Excise Exemption Scheme
Enterprises that have MSME Registration or udyog aadhaar can enjoy Excise Exemption in the initial year of business, as mention in the Excise Exemption scheme by Government and depending on business activity
Q4. 1% exemption on interest rate on OD
Enterprises that have MSME Registration or udyog aadhaar can avail benefit of 1% exemption on interest rate on OD as mentioned in the scheme
Q5. Waiver in Security Deposit in Government
of Micro, Small and Medium Enterprises gives following benefits to enterprises
that has MSME Registration or udyog aadhaar while making application for Government Tenders:
1. Issue of tender sets free of cost
2. Exemption from payment of Earnest Money
3. Waiver of Security Deposit upto the Monetary Limit for which at the unit is registered
Q6. Counter Guarantee from Government of India through CGSTI
Enterprises that have MSME Registrationor udyog aadhaar are eligible for Counter Guarantee from Government of India through CGSTI.
Q7. Reimbursement of ISO Certification
Enterprises that have MSME Registration or udyog aadhaar Certificate can reimburse ISO Certificate Expenses by making application to respective authority along with MSME
Q8. Concession in electricity bills
Enterprises that have MSME Registration or udyog aadhaar Certificate can avail Concession on electricity bill by making application to electricity department along with MSME Registration Certificate
Q9. 15% CLCSS subsidy to purchase fully
The Ministry of Micro, Small and Medium Enterprises is operating a scheme namely “Credit Linked CGSTI Subsidy Scheme ( CLCSS ) for technology upgradation of Micro and Small Enterprises. The scheme was launched in October-2000 and revised from 29.9.2005. The revised scheme aims at facilitating technology upgradation of Micro and Small Enterprises ( MSE ) by providing 15% capital subsidy ( limited to maximum Rs.15 lakhs ) for purchase of Plant & Machinery. Maximum limit of eligible loan for calculation of subsidy under the scheme is Rs.100 lakhs. Presently, more than 1500 well established/improved technologies under 51 sub-sectors have been approved under the Scheme
Q10. Protection against delay in payment
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 or udyog aadhaar , 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
Q11. Collateral Free loans from banks
The Credit Guarantee Fund Scheme from Micro Small and Medium Enterprises (CGS) was launched by the Government of India to avail collateral-free credit to Micro Small and Medium Enterprise ( MSME ) sector. Both the prevailing and therefore 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 little Enterprises ( CGTMSE ) to implement the Credit Guarantee Fund Scheme for Micro and little Enterprises.
Q12. Very easy to get Licenses, approvals and registrations
It has made very easy for enterprises that are having MSME Certificate to get Licenses, approvals and registrations on any field for his or her business from the respective authorities as they will produce the Certificate of MSME Registration or udyog aadhaar while making application.
Q13. Octroi benefits
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.
Q13. Exemption under Direct Tax Laws
Q14. Reservation policies to manufacturing / production sector
Reservation of things for exclusive manufacture in SSI sector statutorily provided for within the Industries ( Development and Regulation ) Act, 1951, has been one among the important policy measures for promoting this sector.
The Reservation Policy has two objectives
A) Ensure increased production of commodity within the small scale sector
B) Expand employment opportunities through fixing of small scale industries
Q15. Special consideration on international trade fairs
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 related to MSME for deputation of MSME business delegation to other countries for exploring new areas of MSME, participation by Indian MSME in international exhibitions, trade fairs, buyer seller meet and for holding international conference and seminars which are within the interest of MSME sectors.
Q16. Waiver of Stamp Duty and Registration Fees
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 or udyog aadhaar and expansions will be exempted from payment of Stamp Duty and Registration fees
Q17. Bar Code registration subsidy
Q18. Eligible for IPS subsidy
Enterprises that have MSME Registration or udyog adhaar are eligible for Industrial Promotion Subsidy (IPS) as mentioned in the scheme
Q19. 50% subsidy for patent registration
Enterprises that have MSME Registration Certificate or udyog aadhaar can avail 50% subsidy for patent registration by making application to respective authority
Q20. P15% weightage in price Preference
Enterprises that have MSME Registration or udyog aadhaar can avail 15% weightage in price Preference as mentioned
Q21. Reduction in rate of Interest from banks
The rate of Interest for enterprise that has MSME registration or udyog aadhaar 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.