Programmes and

Policies of Ministry of
MSME,
Presented by
Government of India
Shri. G.S.Prakash, IEDS
Joint Director & Head
MSME-Development Institute,
Thrissur
Govt .of . India , Ministry of MSME
MSMEs are Micro, Small
and Medium Enterprises

Micro Small Medium

Enterprise Enterprise Enterprises
s s
 INDIAN MSME SECTOR

633 LAKH 111 MILLION 38% GDP 40% EXPORT

MSME UNITS EMPLOYMENT
 Size of MSME
INDIA 2019

633
99.4% 111 Million 8.7% 30%
lakh
Micro Employmen Populatio Workfor
MSME
Units t n ce
Units

23.8 99. 11% 4. 464 12.9 % 40 %

lakh Micro Million Populatio Workfor
MSME Units Employmen n ce
Units t

KERALA 2019
 OVER ALL SUPPORT SYSTEM FOR MSMEs
Central Government

 MSME MINISTRY
 MSME BOARD
 MSME DEVELOPMENT ORGANIZATION DC (MSME) & Field Offices
 Coir Board
 National Small Industries Corporation (NSIC)
 Khadi Village Industries Commission (KVIC)
 Small Industries Development Bank of India (SIDBI)

State Government
 DIRECTORATE OF INDUSTRIES & COMMERCE

 DISTRICT INDUSTRIES CENTRE

Organizational Structure of
O/o DC (MSME)
AS & DC
(MSME)

MSME – DIs MSME – TI MSME – TCs Autonomous

HTDDTC
(30) (2) (4) Bodies (18)

Br. MSME MSME –

TR (10) TDCs (8)
– DIs(28) TS (7)

TCSP (15)
WB
UP COMING 15 NEW TECHNOLOGY CENTREs UNDER TCSP

BHI- DURG BADDI VIZA RO- BHOPA KAN- ERNAKU-

WADI G HTAK L PUR LAM

Auto General General General General General General General

Components Engineering Engineering Engineering Engineering Engineering Engineering Engineering

General PATN
Engineering A

SITAR- GREATER SRIPERUM-

BANGA- PUDUCHER IMPHAL
GANJ NOIDA BADUR
LORE RY

Auto
ESDM ESDM AUTO &
Components ESDM FRAGRANCE &
AEROSPACE FLAVOURS
MSME- Testing Centres

CHENNAI MUMBAI KOLKATA NEW DELHI

8
 MSME- Testing Stations

0 0 0 0 0
1 2 3 4 5
PONDICHERRY HYDERABAD BANGALORE JAIPUR SHOLAPUR
 MSME Field Institutes in Kerala
1) MSME-Development Institute, Thrissur - is
the Field Office for Kerala under the
Ministry of MSME , Govt of India
2)•NEW TECHNOLOGY
Engineering CENTRE
facilities with precision machine tools and allied equipment,
•ANGAMALY ,KOCHImoulds, dies, jigs, fixtures, precision parts and
To designs and manufacture
components etc. ,
• Training programmes up to M Tech level
3) Other Offices in
Small Industries Bank of India (SIDBI) at Kochi,
Kerala

under M/o MSME
Khadi Village industries Commission (KVIC)
National Small Industries Corporation (NSIC) at Kochi
POLICY FRAME
WORK
MSMED ACT 2006
 Became operational on 2nd October 2006
 Prior to 2006- Small scale Industries& Businesses
 After 2006- Micro and Small Enterprises

1
Simplification of registration procedure

2 Constitution of MSME board

3 Industries replaced by enterprises

4 Credit support

5 Penalty for delayed payments.

12
 Revised MSME Classification-
Composite criteria- Investment & Turnover

 In case
enterprise MICRO
cross the ENTERPRISE
criteria either of
SMALL 1 S
the category, it
ENTERPRIS
will be placed in Investment < 1 Cr &
ES
higher category Turnover < 5 Cr
2
Investment
 Will not be < 10 Cr MEDIUM
& Turnover ENTERPRISES
placed in lower
< 50 Cr 3
category unless
it goes below Investment < 50 Cr &
the limit in both Turnover < 250 Cr
investment and
turnover
13
With effect from July 1,2020; Exports will not form part of the Annual Turnover
 NEW MSME REGISTRATION
 MSME Registration process is known As
“UDYAM REGISTRATION”
 Registration Portal:
www.udyamregistration.gov.in
 This is in force w.e.f. 1st July 2020

• Who can Register?

(1)New Registration: Entrepreneurs who are
not yet registered as MSME
(2)Re-registration: Existing entrepreneurs
already having registration as EM-II / UAM
(Last date was 31.12.2021)
14

Beware of Fake Registration

Calculation of investment in Plant &
Machinery or equipment
Existing enterprise where
ITR for the FY is filed
The calculation of investment will be based on
the ITR of the FY filed under the IT act 1961
New enterprise where no
prior ITR is available
The calculation of investment will be based
on the self-declaration of the promoter of
the enterprise. Such relaxation shall end
after the 31st March of the FY in which files
its first ITR

New enterprise where no

prior ITR is available
Under self-declaration, the invoice value of P&M
or equipment, whether purchased first hand or
second hand, shall be taken into account
excluding GST.
 Enterprises which have PAN
Information regarding Turnover shall be linked to
the IT Act or the CGST Act and the GSTIN

Calculation
of Turnover
Enterprises which do not have PAN
The turnover related figures will be considered on self-
declaration basis for a period up to 31 st March, 2021.
After 31st March, 2021 PAN is made mandatory
Clarification regarding Financial Year in respect of
the data of Investment, Turnover and Export from
the IT Department and GSTN for effecting the
Financial Year of Registration in Data (Investment, Turnover and
Classification
Udyam Portal of MSMEs -reg.
Export) taken or to be and
classification as MSMEs taken
from IT Department and GSTN
from the relevant Financial Year

2020-21 2018-19

2021-22 2019-20

2022-23 2020-21
Benefits of Udyam Registration:
· It will be a permanent registration and basic identification
number for an enterprise.

· Along with the Udyam Registration, Enterprises may register

themselves on GeM (Government e-Market place, a portal for G
to B) & SAMADHAAN Portal (a portal to address issues relating
to delay in payments)

· MSMEs can also on board on TReDS Platform,(the invoices of

receivables are traded on this platform)

· MSMEs can avail the benefits of Schemes of Ministry of MSME

such as Credit Guarantee Scheme, Public Procurement Policy,
additional edge in Government Tenders & Protection against
delayed payments etc.

· Becomes eligible for priority sector lending from Banks.

The Ministry of Micro, Small & Medium Enterprises (MSME) on
August 9, 2021 has issued the Inclusion of urban street vendors in
MSME category. It is clarified that the Street Vendors can register
as retail trades on Udyam Registration (UR) portal.

The benefits to Retail and Wholesale trade MSMEs are to be

restricted to Priority Sector Lending only.

The list of eligible additional activities under NIC Code 45,46 and 47
are as follows: -

• 45 Wholesale and retail trade and repair of motor vehicle and

motorcycles
• 46 Wholesale trade except of motor vehicles and motor cycles
• 47 Retail Trade Except of Motor Vehicles and motor cycles
 Public Procurement Policy (PPP)
EMD Exemption, Free
0 tender document
and Price Preference 0 All enterprises registered
with Udyam Registration 0
1 3 5
• Minimum 25% to be A sub-target of 4% of
Preferred Price band

0 0
procured annually by procurement from SC /
Central ST owned MSEs. of L1 + 15% to MSE’s
Ministry/Department/ 3% for women

2 4
Central PSUs from enterprises
MSEs

“Works contract” not covered under Public Procurement Policy

22  358 items continue to be reserved for exclusive pur-
chase from MSEs.

 Defense armament imports / weapon systems, missiles,

etc exempted from purview of this policy .
(Due to its unique natureBeneficiaries
)
All enterprises registered with any of the following :
• Micro and Small Enterprises (as per MSMED act) ; Khadi,
Village Industries Commission; Coir board ;
Khadi and Village Industries Board ; NSIC registered
units; Directorate of Handicrafts and Handloom ;
Any other body specified by Ministry of MSME; With effect
from 18.09.2015, MSEs registered under UAM/UR are also
 Contd…..

Benefits under PPP

MSEs will be facilitated by tender

sets free of cost

Exempting MSEs from payment of

earnest money

Adopting e-procurement to bring in

transparency in tendering process

358items are reserved for exclusive

procurement from MSE’s
24
OTHER IMPORTANT POINTS

 PPP is not applicable to traders.

 The works contract is not covered under PPP.
 The policy does not provide benefit for exemp-
tion from Security Deposit.
 The PPP 2012 is applicable only to Central Min-
istries/Departments/CPSUs
 Policy is applicable to all the Govt Ministries/
Departments/CPSUs irrespective of volume and
nature of procurement and is not exempted from
policy those having meagre value of total
25
 Preference to “Make in India”

(DPIIT Order No:- P-45021/2/2017-B.E.-II Dated 16 th September,

2020)
 PREFERENCE TO MAKE IN INDIA
“Public Procurement (Preference to Make in
India), Order 2017”
(Dated 16th September 2020)
Without special
approval, Govt will
As per the Order, procuring entities should not impose restrictive
not issue global
tender conditions that discriminate against domestic manufacturers
tender enquiry for
Categories of Goods/Services suppliers purchases of less
Class I Supplier – 50% or more local content than Rs. 200 Crore

Class II Supplier- 20% - 50% local content Only suppliers with

Non local Supplier- 20% or less local content more than 20%
local content can
As per PPMII- Government will give preference to Class 1 suppliers participate in such
bidding process.
Central Public Procurement
Portal
 It is a single point access to the
information on procurements made
across various Ministries and the line
Departments.
 URL https://eprocure.gov.in
 Platform for publication of tender
and bid award details by Central and
State Government Ministries,
Departments and Organizations, PSUs
 Government – E-
Marketplace (GeM)

29

www.gem.gov.in
Government e Marketplace – The
Genesis
• A one-stop online procurement portal for
all Government Buyers including
Central/State ministries, Departments,
Bodies & PSUs. Launched on 9th August
2016. (https://www.gem.gov.in/). The government is committed
to curbing corruption. One of
the key aspects of this
• Rule 149 of GFR amended to objective is to minimize
“Procurement of Goods and Services by Governments human
transactional interface.
Ministries or Department will be
mandatory for Goods or Services
available on GeM”

• GeM aims to enhance efficiency,

transparency, inclusiveness in public
procurement.

• It provides the tools of e-Bidding,

Challenges faced by MSMEs

Reasons for inadequate finance to

MSMEs
High risk perception Inadequate collateral

High cost of acquisition /

serving

Lack of formal financial

documentation

The Trade Receivables Discounting System/platform aims to bridge the

financing gap between MSMEs and formal credit institutions

*According to IFC MSME report, 2012

Trade Receivables Discounting System (TReDS)

o What is TReDS?
 TReDS an electronic platform for facilitating the financing /
discounting of trade receivables of Micro, Small and Medium
Enterprises (MSMEs) through multiple financiers.
o What is the need for TReDS?
 MSMEs play an important role in the economic fabric of the
country. However, they face constraints in obtaining adequate
finance, particularly in terms of their ability to convert their
trade receivables into liquid funds. Moreover, this is a pan-
India issue. TReDS has been brought in to help ease this pain
endured by MSMEs.

2
 Who can participate?

Only MSMEs
allowed

Sellers

- Banks, NBFC and

other financial Government
institutions as Participan Departments, PSUs,
permitted by the ts Corporates and any
Reserve Bank of India other entity
(RBI)

Financiers Buyers

3
TReDS platform brings MSMEs, their buyers and financiers on a single platform

Buyer
Buys good from seller
and has to pay at the
end of the credit period

TReDS platform enables buyers to

accept invoices uploaded by
TReDS TReDS platform settles repayment
from buyer to financier
sellers
Platform
TReDS platform enables financiers to buy invoices from
sellers and also settles the payment from financier to
seller
Seller Financier
Provides goods / services to “Buys” seller’s invoices
large buyers and raises and assumes ownership of
invoice on buyer for receivables to be paid by
payment after credit period buyer on due date
Trade Receivables Discounting
System (TReDS)

 "MSMEUnits are requested to

Onboard on TReDS Platform.
 Three available platforms are
1. www.rxil.in
2. www.m1xchange.com
3. www.invoicemart.com
 Delayed Payment Act for MSEs

Under MSMED Act -2006, protections are

offered for timely payment of goods and
services by the buyers to MSEs.
• State govt. has established a Micro and Small
Enterprises Facilitation Council (MSEFC)
under the chairmanship of Commissioner of
Industries, GOK, with the representatives from
Industry Associations, Banks, etc.
 Nature of assistance

Where any Buyer fails to

make payment to MSE on
their supplied Goods or
Services, is liable to pay
compound interest with
monthly rests on the amount
from the appointed day or
 samadhaan.msme.gov.in
 An initiative for filing online application by the
supplier MSE unit against the buyer of
goods/services before the concerned MSEFC of
his/her State/UT.
 These will be viewed by MSEFC Council for their
actions.
Marketing
Support
Schemes
 PROCUREMENT & MARKETING SUPPORT SCHEME

Participation of individual Capacity building of MSMEs Organizing State Organizing/

International/ in modern packaging
MSEs in domestic trade National Level/ National Level Participation in trade
fairs/ exhibitions across technique: Vendor Development fairs / exhibitions by
Seminars
the country Programme. Ministry of MSME
80 % of cost will be paid to
80% space rent for empanelled agency/
packaging consultant for Participating units will
General and 100% for
SC/ST/Women/PH/ Gen; 100% for SC/ST/W/PH be provided stalls at
limited to Rs. 1.5 lakhs for 80% subsidy and
From Rs.80000/- to Max Green Packaging and Rs. 1 100% for
up to Rs. 1.5 Lakhs lakhs for ordinary SC/ST/Women/PH
packaging.
 International Co-operation
• Visit of MSME delegations in international exhibitions/
trade fairs, conferences/ summits/workshops etc
• Holding international conferences/ summits/
workshops/ seminars to be organized in India by the
Industry Associations/ Government organizations.
• Participation of MSME delegations in International
exhibitions,
IC Scheme havetrade fairs and
following three buyer-seller meets in
sub-components:
foreign countries/
1. Market resource
Development Assistance
persons (MDA) - (both
Physical and Virtual Mode)
2. Capacity Building of First Time Exporters (CBFTE)
3. Framework for International Market Intelligence
Dissemination (IMID)
 MSME MART (initiative by NSIC)
A global business to Business portal facilitating business services to MSMEs through digital
interventions
Create your company’s webpage in
minutes. Keywords based unlimited tender alert

Display products & services 24 x 7 Trade leads

Connect with buyers and suppliers Request for quotation

Information on Events and

Exhibitions
IPFC set up in MSME-DI, Thrissur
Services offered
• General information and
guidance on all forms of
IPRs like patents,
trademarks, designs,
GIs etc.
• Status check of existing
patents ie; whether a
patent is valid,
abandoned or expired.
•
 Various Credit
measures available
for MSME Sector
 Collateral Free Loan- CGTMSE

All fund (term loan,

MSE loans for projects Guarantee is Both
working capital)/
up to Rs. 2 crore ( as given to Manufacturing,
per scheme non-fund based
Member Service sectors
guidelines), which are (letter of
Lending & retail trade
not backed with credit/bank
Institutions are covered.
collateral and third guarantee) facilities
party guarantee (MLI)
covered.

Credit for educational / training institutions and For more details www.cgtmse.in
SHGs are not eligible for coverage.
 Debt restructuring for MSMEs
As per the existing RBI Guidelines banks and financial institutions satisfying the following conditions shall be permitted
to restructure their MSME debts:

If the total borrowings

from all banks and

0 NBFCs by
borrower does not
exceed Rs 50 crores.
the
0
1 3
MSME accounts that hold a More than 5 lakh MSME
status of “standard asset” in
0
accounts already restructured
the books as on 31st March and Govt expects another 25
2021 lakh accounts to be

2
restructured

FM announced to give a further extension to the scheme for MSMEs till 31st March 2022
 EMERGENCY CREDIT LINE GUARANTEE
SCHEME (ECLGS)
ECLGS 100% guarantee with respect to loans to borrowers having credit
1.0 outstanding of Rs.50 crores and days past due of up to 60 days as on
29/02/2020

100% guarantee with respect to loans to borrowers belonging to

ECLGS identified sectors and healthcare sector having credit outstanding
2.0 between Rs.50 crores – Rs.500 crores and days past due of up to 30
days as on 29/02/2020

ECLGS

100% guarantee with respect to loans to borrowers in the hospitality,

ECLGS travel & tourism, leisure & sporting and civil aviation sectors having
3.0 days past due of up to 60 days as on 29/02/2020

100% guarantee with respect to loans to borrowers in eligible

ECLGS
hospitals/nursing homes/ clinics/ medical colleges/ units engaged in
4.0 manufacturing of liquid oxygen, oxygen cylinders etc. for setting up of
on-site oxygen producing plants.
Nature of Facility:

Under ECLGS 1.0 & 3.0

Working Capital Term Loan

Under ECLGS 2.0 & 4.0

Working Capital Term Loan

Non fund based facility
Combination of both fund & non- fund
 Quantum of Finance
ECLGS
1.0 20% of total credit outstanding up to Rs.50 crores as on 29/02/2020

ECLGS
20% of total credit outstanding up to Rs.500 crores as on 29/02/2020
2.0

ECLGS

ECLGS 40% of total credit outstanding subject to a cap of Rs.200 crore per
3.0 borrower

ECLGS
4.0 Maximum 2 crore per borrower
 Tenure
ECLGS
1.0 4 years from the date of first disbursement

ECLGS
5 years from the date of first disbursement of fund based facility or
2.0 first date of utilization of non fund based facility, whichever is earlier

ECLGS

ECLGS 6 years from the date of first disbursement

3.0

ECLGS
5 years from the date of first disbursement of fund based facility or
4.0 first date of utilization of non fund based facility, whichever is earlier
Rate of Interest

For ECLGS 1.0, ECLGS 2.0 & ECLGS 3.0

MSMEs
Linked to RLLR, subject to a minimum RoI of 7.5% and maximum up to 9.25%

ECLGS 4.0

 Linked to RLR/ MCLR with maximum cap at 7.5% pa

 Interest to be served as and when applied
 Penal interest as per extant bank’s guidelines would be charged for default in payment of installments &
interest within stipulated time period
 No penal interest due to any non-compliance of the already accepted covenants on existing credit
facilities may be charged on this product during the sanction time
 Asset Restructuring Module for MSME (ARM-MSME)

• Asset Restructuring Module for MSME (ARM-MSME) is a

web-based Do It Yourself (DIY) module to help MSME
entrepreneur(s) prepare restructuring proposal
themselves and submit to their bank(s).
• It is a web portal developed by Small Industries
Development Bank of India (SIDBI) and its associate, India
SME Asset Reconstruction Company Ltd. (ISARC).
Web portal of ARM-MSME can be accessed from
https://arm-msme.in
Subordinate Debt for Stressed
MSMEs (CGSSD )
https://subdebt.cgtmse.in/SUBDEBT/jsp/Home.jsp
• To provide Sub-debt support in respect of
restructuring of MSMEs
• Repayment tenure- 10 years
• Moratorium on payment of principal is 7
years
• MSME promoters will be provided credit equal
to 15% of their stake or Rs.75 lakh, whichever
is lower
• Scheme validity extended up to 30/09/2021
• Eligible borrowers-
1) MSME Accounts which are Stressed (SMA 2
and NPA) as on 30.04.2020
Infrastructure
Development
 MSE-CLUSTER DEVELOPMENT

A cluster is a group of enterprises located

within an identifiable and as far as practicable,

contiguous area or a value chain that goes beyond

a geographical area and producing same / similar

products / complementary products/ services,

which can be linked together by common physical

infrastructure facilities that helps them to address

 Components
Common Facility Centers: Creation of “tangible assets” such as Common
Production / Processing Centre, Design Centers, Testing Facilities including
Plug & Play Facilities with Backward / Forward Linkages etc. GoI grant - 70%
of the project cost (Max 20 Cr)

Infrastructure Development: Development of land, roads, drainage,

power distribution etc. in new / existing industrial (multi-product) .
areas / estates / Flatted Factory Complex GoI grant - 60% of the
Project cost Project cost not exceeding Rs.10 cr. for IE and Rs.15 Cr
for FFC
 Other Schemes by
Government of India
Pradhan Mantri MUDRA Yojana (PMMY)

01
Scheme launched by the Hon’ble Prime Minister
on April 8, 2015

02
Loans up to 10 lakh to the non-corporate,
non-farm small/micro enterprises

03
Loans are given by Commercial Banks, RRBs,
Small Finance Banks, MFIs and NBFCs.

You can simply impress your audience and add a

unique zing and appeal to your Presentations.
 Stand-up India The entrepreneur
may be engaged
in manufacturing,
services or the
Bank loans 5 trading sector.
To promote between Rs 10
entrepreneurship lakh and Rs 1
amongst the 3 Crore
schedule caste
/schedule tribe and
1 women

4 Composite loan of
Loans under the 75% of the project
scheme is cost inclusive of
2 To provide available for only term loan and
handholding support Green field working capital.
to potential Projects
entrepreneurs
 PSB Loans in 59 minutes
 An online marketplace to cater to various financial aspirations of individuals and businesses.
 The Platform is processing loan applications for In-principle approval within 59 minutes.

Platform is integrated
with CGTMSE to Borrower gets an In-
Rate of interest check eligibility of principle approval
starts from 8.5% borrowers) letter in less than 59
minutes
Business Loan In-principle
Unique platform that approvals, with /without
ensures seamless In- collateral, are currently
principle loan approval provided for value from INR
PSB Loans 1 Lac to INR 5 Crore

Post receiving In-principle The borrower has

approval letter, the loan is been given the
expected to be sanctioned/ flexibility to choose
disbursed in around 7-8
lender
working days
UDYAMIMITRA

A credit delivery
platform enabling
ease of access
to MSMEs financial
and non-financial
service needs
National Small Industries
Corporation
 Schemes offered by NSIC
Procurement &
National
Marketing
SC/ST Hub
Support

Exhibition &
Credit Support
Event
Management

Marketing
Infrastructure
Support
 For more details visit:

Manager
NSIC LTD, S-67,GCDA
COMMERCIAL COMPLEX,
MARINE
DRIVE,SHANMUGHAM
ROAD, KOCHI-682031
Zip Code -682031
Ph- 0484-2381850/2368149
SIDBI ( Small Industries
Development
T BALAJI Bank )

AGM
9786630641
[email protected]
Kochi BO - M T Plaza, Ground floor, 64/2842, Kaloor-Kadavanthara
Road, Kochi - 682017 Kerala, INDIA Tel No : 0484-4025313,
4030313, 4028313
General Services/
Grievances
Redressal Portal

State Control Room- 0487-2953300

MSME-Development Institute , Thrissur
Kanjani Road, Ayyanthole P:O
Thrissur-680003
Tel: 0487-2360536, 0487-2360216
Email: [email protected]
www.msmedithrissur.gov.in
State Champions Control Room- 0487-
2953300
www.champions.gov.in
THANK YOU
Thank you