Govt schemes & benefits under the MSME ministry

June 22, 2018

Here are some key government programmes that have been initiated by the MSME Ministry to nature this sector. Schemes like the Prime Minister’s Employment Generation Programme (PMEGP), the scheme for promotion of innovation, rural industry and entrepreneurship (ASPIRE), and the Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Weaver Mudra Card scheme, among others are executed by the Ministry of Small and Medium Enterprises MSMEs.

Prime Minister Employment Generation Programme (PMEGP)

The scheme is implemented by Khadi and Village Industries Commission (KVIC) functioning as the nodal agency at the national level. At the state level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), District Industries Centres (DICs) and banks. In such cases KVIC routes government subsidy through designated banks for eventual disbursal to the beneficiaries / entrepreneurs directly into their bank accounts.

Nature of assistance

The maximum cost of the project/unit admissible in the manufacturing sector is ₹ 25 lakhs and in the business/service sector, it is ₹ 10 lakhs.

Categories of Beneficiary’s Rate of subsidy under PMEGP (of project cost)

Area (location of project/unit) General category 15%(Urban), 25%(Rural), Special 25%(Urban), 35%(Rural)

(including SC/ ST/ OBC/ Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill, and Border areas, etc.)

The balance amount of the total project cost will be provided by the banks in the form of a term loan and working capital.

Who can apply?

Any individual, above 18 years of age. At least VIII standard pass for projects costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business / service sector. Only new projects are considered for sanction under PMEGP. Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme), Institutions registered under Societies Registration Act,1860; Production Co-operative Societies, and Charitable Trusts are also eligible.

Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are NOT eligible.

How to apply?

The State/Divisional Directors of KVIC in consultation with KVIB and Director of Industries of respective states (for DICs) will give advertisements locally through print & electronic media inviting applications along with project proposals from prospective beneficiaries desirous of establishing the enterprise/ starting of service units under PMEGP.

The beneficiaries can also submit their application online at and take the printout of the application and submit the same to respective offices along with Detailed Project Report and other required documents.

Whom to contact

State Director, KVIC

Address available at

Dy. CEO (PMEGP), KVIC, Mumbai

Ph: 022-26711017

Email: ykbaramatikar[dot]kvic[at]gov[dot]in

(For scheme guidelines, click here)

Performance and Credit Rating Scheme

The purpose of rating scheme is to provide a trusted third party opinion on the capabilities and creditworthiness of the micro & small enterprises (MSEs) so as to create awareness amongst MSEs about the strengths and weakness of their existing operations. This provides them an opportunity to improve and enhance their organizational strengths and creditworthiness, so that they can access credit at cheaper rates and on easy terms. It also facilitates them in increasing their acceptability from Customers / Buyers and Vendors. Rating under the scheme is a combination of credit and performance factors. Rating symbols are standardized and followed uniformly by all Rating Agencies.

Nature of assistance

Rating fee payable by the MSEs is subsidized by the Government to the extent of 75% subject to a ceiling of ₹ 1500/-, ₹ 30000/-or ₹ 40000/-based on the turnover of the unit, for the first year of rating.

Who can apply?

Micro & Small Enterprises

How to apply?

Rating is carried out through accredited rating agencies empaneled under the Scheme. MSEs have a liberty to choose any of the empaneled Rating Agencies. Any unit, seeking rating under the Scheme, may apply in the application form (may be downloaded from the website of Ministry of MSME, NSIC, Office of DC-MSME and the Rating Agencies) along-with prescribed documents and its share of rating fee directly to the rating agency, selected by it,

Whom to contact

General Manager-SG (Finance), NSIC

Ph: 011-26920920

Email: pcrs[at]nsic[dot]co[dot]in

(For more details under the PMEGP, click here)


Technology Upgradation and Quality Certification

A Scheme for promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE)

The main objectives of the scheme are to:

(i) Create new jobs and reduce unemployment (ii) Promote entrepreneurship culture in India (iii) Boost Grassroots economic development at district level (iv) Facilitate innovative business solution for unmet social needs, and (v) Promote innovation to further strengthen the competitiveness of the MSME sector.

Nature of assistance

NSIC/KVIC or Coir Board or any GoI or State Government agency to set up 80 Livelihood Business Incubators for the period 2014 to 2016. The objectives are: Promotion of Innovation, Entrepreneurship and Agro-Industry organisation of the M/o MSME, and one-time grant of 100% of cost of Plant & Machinery other than the land and infrastructure, or an amount up to Rs 100 lakhs, whichever is less is to be provided In case of incubation centres to be set up under PPP mode with NSIC, KVIC or Coir Board or any other Institution/agency of GoI/State Government, one- time grant of 50% of cost of Plant & Machinery, other than the land and infrastructure, or Rs 50.00 lakhs, whichever is less is to be provided.

Assistance towards the training cost of incubates will be met out of the ATI scheme of the Ministry as far as possible for both centres. A total budget plan is Rs 62.50 cr for 2014-2016.

Who can apply?

The Scheme aims to implement the Incubation and Commercialisation of Business Ideas Programme through technical / research institutes, including those in the field of agro-based industry. These would be designated as Knowledge Partners and would incubate new/existing technologies for their commercialisation.

The scheme also provides funds for the incubator/incubation and creates necessary synergy between this scheme and the Livelihood Business Incubators/Technology Business Incubators and Incubation schemes of MSME / NSIC / KVIC / Coir Board / Other Ministries/Departments as well as Private incubators.

How to apply?

The application can be sent to Aspire Scheme Steering Committee of the Ministry of MSME. The Scheme Steering Committee will be responsible for overall policy, coordination, and management support. The Council will be chaired by Secretary, Ministry of MSME.

Whom to contact?

Deputy Secretary (ARI), M/o MSME

Ph: 011-23062745,

Email: samar[dot]nanda[at]nic[dot]in

(For more details under this scheme, click here)

Entrepreneurship and Skill Development Programme

Assistance to Training Institutions (ATI)

The assistance is provided to National level training institutions operating under the Ministry of MSME, namely, NIMSME, KVIC, Coir Board, Tool Rooms, NSIC & MGIRI in the form of a capital grant for the purpose of creation and strengthening of infrastructure and support for entrepreneurship development and skill development training programmes. Assistance is also provided to those State level EDIs that enter into a partnership with NIMSME for capacity development for undertaking studies & research on MSME issues. The scheme also provides research grant upto Rs 15.00 lakh on MSME issues. MSME chair is also sanctioned in premier National academic institutions.

Nature of assistance

Revenue grant is provided to institutions on annual basis for the MSME chair. State level EDIs that enter into a partnership with NIMSME are provided total grant upto Rs 2.5 Cr.

Who can apply?

Select State level EDIs that enter into a partnership with NIMSME and national level premier academic institutions are eligible to apply for the MSME chair.

How to apply?

Organisations wishing to apply for assistance for creation or strengthening of infrastructure may send their applications to the Deputy Secretary (EDI), Ministry of Micro, Small and Medium Enterprises, Udyog Bhawan, Rafi Marg, New Delhi - 110 107.

Whom to contact

Deputy Secretary (EDI), M/o MSME

Ph: 011- 23061636,

Email : ak[dot]chaube[at]nic[dot]in

(For more details under this scheme, click here)

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