Promotion of MSMEs in NE Region and Sikkim

MSMEs are being developed in the country by the Ministry of MSME. However, a need for special attention has been identified in the growth of MSMES in the North Eastern Region and Sikkim. On 2.08.2016, a specific programme for the “Promotion of MSMEs in the North Eastern Region and Sikkim” was authorised with this goal in mind. 

Components of the Scheme

The sub-components of the scheme include:

1. Creating new Mini Technology Centres and updating existing ones-

The Scheme aims to provide financial support to state governments for the establishment of new Mini Technology Centres and the modernisation of existing ones. Assistance with finances: The financial aid would be equal to 90% of the cost of machinery, equipment, or structures, up to a maximum of Rs. 10.00 crore. Government of India assistance will not be available for land costs, and building costs would be limited to a maximum of 20% of the total cost.

2. New and existing industrial estates development-

Financial Assistance: For the development of new and existing Industrial Estates, 80 percent of the cost of infrastructural facilities not exceeding Rs. 8.00 crore would be sanctioned. Power distribution, water, telephone, drainage and pollution control facilities, highways, banks, storage and marketing outlets, and other infrastructural amenities will be included.

3. Officer Capacity Building-

Objective: To build the capacity of officers involved in MSME promotion and development by deputing them to different Techno-managerial training programmes at MSME Institutions such as NI-MSME, Hyderabad, MSME Technology Centres, and other reputable national organisations.

Financial Assistance: Under the initiative, the Government of India would bear the cost of training fees and boarding/lodging charges for officers, which will be paid directly to the training institutions (maximum 7 days). For domestic training, the various Departments / State Governments will cover the cost of TA/DA. In the event of International Training Programs, apart from the course price, the Government of India will cover the costs of TA/DA incurred while travelling overseas (via economy class quickest route) (Expenditure limit on both to be Rs. 1.5 lakh per participant). Domestic expenditures will be met by the respective state governments.

4. Additional Activities-

Funds from the Scheme can be utilised for a variety of purposes, including research investigations (including assessment studies). Institute strengthening (soft intervention alone), etc. It will also comprise demand-driven services such as knowledge services and human capital development, as well as business services.

MSME Benefits

Registering as an MSME offers several benefits to the organisation. Some of them are listed below:

1. Loans from banks (Collateral Free)-

The Indian government has made loans without collateral available to all small and microbusinesses.  Benefits are available to both established and new businesses under this plan. The Credit Guarantee Trust Fund Scheme was formed by the Government of India, SIDBI (Small Industries Development Bank of India), and the Ministry of Micro, Small, and Medium Enterprises to assure that the Credit Guarantee Scheme is implemented for all Micro and Small Enterprises.

2. Patent Registration Subsidy

MSMEs registered with the MSME ministry are eligible for a 50% rebate on patent registration costs under current legislation. As a result, small businesses and corporations are encouraged to continue creating and developing new technologies and activities. Subsidies can be obtained by filing a request to the relevant ministries.

3. Interest Rate Exemption for Overdrafts

In a system that varies from bank to bank, businesses and firms classified as MSMEs can get a 1% discount on their Overdraft. This makes small firms safer in times of market uncertainty.

4. Anti-Payment Protection (Delayed Payments)

MSMEs are continuously at danger of late payments, which disrupts their entire operation. In order to protect registered businesses, the Supreme Court ruled that any buyer of products or services from a registered MSMEs must pay on or before the agreed-upon payment date, or within 15 days of accepting the goods or services. If the buyer takes more than 45 days to pay after receiving the items or services, the customer will be charged interest on the agreed-upon sum.

5. Electricity bills are lower

Energy bill reductions are available to any firms holding an MSME Registration Certificate. Micro, small, and medium firms who submit an application to the Department of Electricity together with their certificate of registration are eligible for the discount.

6. Reimbursement of ISO Certification Fees

Any registered micro, small, or medium business can request compensation for expenditures incurred in obtaining ISO certification. This encourages entrepreneurs to get their businesses ISO certified, allowing them to do worldwide commerce and export high-quality items.

Conclusion

MSMEs, or Micro, Small, and Medium Enterprises, have become a fundamental pillar of the Indian economy’s foundation. MSMEs allow inhabitants of a country to strike out on their own, producing new employment and diversifying a region’s gross domestic product (GDP). They have also helped to resurrect the artisan class in India’s outer reaches by giving jobs, loans, and other services to the artisan class. They also continuously promote technological advancements, infrastructural growth, and the modernisation of the country and our society as a whole.