MSME SCHEMES

MSME - Development & Facilitation Office

Rajajinagar, Bengaluru

DEFINITION OF MSME �MANUFACTURING & SERVICE

To help MSMEs scale operations and access better resources, the investment and turnover limits for classification have been increased by 2.5 times and 2 times, respectively.

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MSMEs as Backbone of Indian Economy

MSME products accounted 45.8% of India’s total exports, reinforcing their role in positioning the country as a global manufacturing hub

Source: NITI Aayog: 2025 March

• The MSME Development and Facilitation Office (DFO) functions as a regional field office under the Ministry of MSME, Government of India, tasked with implementing MSME policies, facilitating schemes, supporting entrepreneurship, and delivering development services, including training, advisory, and cluster-based infrastructure support.

Registration of MSME

Udyam Registration Portal:

www. udyamregistration.gov.in

Source: Udyam portal: 2025 March

PRIME MINISTER’S EMPLOYMENT GENERATION PROGRAMME (PMEGP)

PMEGP is a major credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector. 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.

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Who can apply?

• Any individual aged 18 years and above is eligible, and for projects costing above ₹50 lakh in the manufacturing sector or above ₹20 lakh in the business/service sector, the applicant must have passed at least Class VIII; existing units that have already availed government subsidy under PMRY, REGP, or any other Central/State scheme are not eligible, however, existing units under PMEGP, REGP, or MUDRA are eligible for a second loan for expansion and upgradation..

CREDIT GUARANTEE SCHEME FOR MICRO & SMALL ENTERPRISES (CGTMSE)�

• To facilitate collateral‑free credit by providing a guarantee cover to banks/NBFCs  – To encourage first‑generation entrepreneurs to access loans without requiring third‑party guarantees.
• Guarantee coverage is available for credit facilities up to ₹10 Crore – Coverage percentages vary by borrower category and loan amount.  
• (Note: Annual Grantee Fee Chargeable from 0.37 to 1.20 % of the out standing amount)
• Example: Micro enterprises may get up to 85% cover for smaller loans and 75% for larger slabs  – Enhanced guarantee rates are provided for MSMEs in special regions and for women/SC/ST entrepreneurs.
• MSME applies to a Member Lending Institution (MLI) → Bank extends the credit → CGTMSE provides a guarantee over default risk.

MICRO & SMALL ENTERPRISES CLUSTER DEVELOPMENT PROGRAMME(MSE-CDP)

• To support the growth and sustainability of MSMEs through cluster formation: To create and upgrade infrastructural facilities and Common Facility Centres (CFCs) in industrial clusters.
• Hard Interventions: Set up tangible assets such as production/processing centres with government assistance (up to 70% of project cost, subject to ceiling limits): Infrastructure Development: Renewal and expansion of industrial estates, flatted factory complexes, etc.
• Focus on enhancing technology, skills, quality, and market access.
• Apply and monitor progress via the dedicated portal: https://cluster.dcmsme.gov.in

Source: DFO Bengaluru: June 2025

PM VISHWAKARMA YOJANA- SUPPORTING TRADITIONAL ARTISANS��

• Objective: Empower artisans in 18 traditional trades through skill training, toolkits, finance, and digital + market access.
• Key Benefits: ₹15,000 Toolkit e-voucher, Skill Training: Basic (40 hrs) + Advanced (120 hrs) + ₹500/day stipend: Loans: ₹1L (1st) + ₹2L (2nd) @5% interest, 8% interest subvention: Digital Payments: ₹1 per transaction (max 100/month): Market Support: Branding, e-commerce onboarding, promotion.
• Eligibility: Age ≥18, traditional artisan, self-employed: One member per family: No govt. loan in past 5 years.
• Covered Trades (Selected): Carpenter, Goldsmith, Blacksmith, Potter, Cobbler, Barber, Tailor, Mason, Doll Maker, Coir Weaver, Boat Maker
• Implementation: Launched Sep 2023 by Ministry of MSME with ₹13,000 Cr (2023–28)

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RAISING AND ACCELERATING MSME PERFORMANCE (RAMP)�

• To scale up the outreach and impact of existing MSME schemes addressing market access, finance, technology upgradation, and digital initiatives: To strengthen Centre‑State collaboration and institutional capacity for a more responsive MSME ecosystem.

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• World Bank‑supported Central Sector Scheme implemented over FY 2022‑23 to 2026‑27 Aims to benefit over 5.5 lakh MSMEs through state‑submitted strategic investment plans (SIPs) and targeted interventions, Focus areas include innovation, digitization, receivables financing, and greening initiatives.

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• Individual MSMEs can avail benefits via State Government agencies, A dedicated RAMP portal will provide complete guidelines and monitoring details.

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MSME CHAMPIONS

• The CHAMPIONS portal is a platform for resolution, redressal and remedies. It is a facility provided by the Ministry of Micro, Small and Medium Enterprises for: - Ensuring a speedy, convenient, and effective redressal of MSMEs grievances.
• Handholding and helping MSMEs in their navigation of various government schemes/policies.
• Providing guidance and advisory services in areas of Finance, Marketing, Technology, Raw Material, Labour, Infrastructure and Capacity Building.
• Connecting MSMEs with key officials of Ministry, State Governments, Lending Institutions and Government agencies.
• Disseminating of information and details of all schemes of the Ministry of MSME.

As on date, the portal disseminates information in eleven regional languages by using the facilitation from 69 state control rooms across the nation.

MSME - Innovative (Incubation, IPR and Design)

IPR

The MSME-Innovative Scheme is a comprehensive support program that promotes entrepreneurship and innovation through financial and technical assistance for business incubation, design interventions, and IPR facilitation for MSMEs and startups.

Idea Incubation

No. of IPFC approved: 2 Nos

Source: DFO Bengaluru: June 2025

ZED Scheme (Zero Defect-Zero Effect)

The ZED scheme helps MSMEs enhance product quality and reduce environmental impact through structured maturity levels and clear assessments.

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MSME SUSTAINABLE (ZED) CERTIFICATION

Incentivises quality manufacturing through graded certification (Bronze, Silver, Gold)

ZED Certification

Why ZED Matters: Facilitates quality-driven and sustainable manufacturing practices, helps MSMEs gain trust, access better markets, and qualify for subsidies and procurement benefits.

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Process Overview

1. Register & take the ZED pledge

2. Self-Assessment (online)

3. Desktop Assessment

4. Site Visit to verify parameters or choose consultancy path

5. Certification & subsidy disbursement

6. Re-assessment after 3 years or for higher level

Source: DFO Bengaluru: June 2025

MSME COMPETITIVE (LEAN)

Nature of Assistance: Cost of Implementation:

• To enhance the competitiveness of MSME through the implementation of Lean Tools and Techniques. These methodologies, which are well-established and effective, focus on improving efficiency and optimizing processes to boost the competitiveness of MSME sectors.
• The intended beneficiaries of the scheme are Udyam-registered Manufacturing MSME. The scheme is being implemented by the offices of the Development Commissioner (MSME), Ministry of MSME through Quality Council of India and National Productivity Council.

Lean Manufacturing or Lean Production, which is often known simply as LEAN, is a production practice that considers the expenditure of resources for any goal, other than the creation of value for the end customer to be wasteful, and thus, a target for elimination. Lean manufacturing includes a set of principles that lean thinkers use to achieve improvements in productivity, quality, and lead-time by eliminating waste through kaizen. Kaizen is a Japanese word that essentially means "change for the better" or "good change." The goal is to provide the customer with a defect free product or service when it is needed and, in the quantity, it is needed.

PROCUREMENT AND MARKETING SUPPORT (PMS)

• To facilitate market access for MSMEs through assistance in participation at trade fairs, exhibitions, and buyer-seller meets; To build capacity for modern packaging, digital marketing, and export procedures.
• Financial support for domestic/international event participation (subsidies for stall charges, registration, freight, and advertisement), e‑commerce practices.

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Note:

i. An MSE would be allowed reimbursement for a maximum of 2 (two) events in a year.

ii. Applicant units shall have to submit their claim online (or system in place) in the prescribed format within 30 days from the date of conclusion of the event.

iii. Overall participation in minimum 100 Trade Fairs per year with a maximum of 60 participating units per Trade Fair.

iv. The Empowered Committee of the Scheme may assign an Implementing Agency to represent the Ministry for propagating the scheme and policies during the event, and for monitoring of participants and publicity (branding, bunting, etc.). The budgetary support for participation of implementing agency will be max. 10% of total allocation to the event or actual, whichever is less. The Implementing Agency will take the approval of the competent authority for the publicity proposal.

Source: DFO Bengaluru: June 2025

ENTREPRENEURSHIP AND SKILL DEVELOPMENT PROGRAMME (ESDP)

The programme aims to encourage youth from diverse backgrounds, such as SC/ST, women, persons with disabilities, ex-servicemen, and those below the poverty line; to view self-employment and entrepreneurship as viable career paths. Its broader goal is to foster new enterprises, strengthen existing MSMEs, and cultivate an entrepreneurial mindset across the country.

• Entrepreneurship Awareness Programme (EAP)- Duration: One Day
• Entrepreneurship cum Skill Development Programme (E-SDP)- Minimum 6 Weeks Programme- 25-30 participants.
• Advance E-SDP- This component is newly added, to be conducted by premier Institutes like IIT, IIM, ICAR, BARC, Agricultural Universities of State or Central Governments.
• Management Development Programme (MDP)- Minimum One Week, 25-30 participants.
• Advance MDP- Newly added in the guidelines approved for the 15th Fc to be conducted by premier institutes like Advance E-SDP components.

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The progress of Skill development programmes conducted by various organizations of the M/o MSME since 2020-21 to 2024-25* is provided in the bar chart as below:

‘*’ : Upto December, 2024

Source: MSME Annual Report 2024-25

MSME SAMADHAAN�DELAYED PAYMENT REDRESSAL

• Legal provision under Sections 15–24 of the MSMED Act, 2006 ensures that buyers must make payment to Micro and Small Enterprises (MSEs) within 45 days of accepting goods or services.
• In case of delay, buyers are liable to pay compound interest at three times the RBI Bank Rate, calculated monthly (Section 16).MSE Facilitation Councils (MSEFCs) are established in all States/UTs to resolve payment disputes within 90 days (Section 20–21).
• Appeal Clause (Section 19): Buyers must deposit 75% of the awarded amount before appealing any decision of MSEFC.Only MSEs registered on the Udyam Portal are eligible to file cases.
• A dedicated online platform for Udyam-registered MSEs to file and track delayed payment complaints.
• Cases are automatically visible to MSEFCs, Central Ministries, CPSEs, and State Departments to ensure transparency and timely action.
• Features include real-time case dashboards, automated status updates, and digital documentation.
• Ensures faster redressal, promotes accountability, and strengthens the grievance mechanism for MSEs.

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Website: https://samadhaan.msme.gov.in

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Major Scheme wise Total Expenditure 2022-23, 2023-24 and Budget Estimate,

Revised Estimate and Expenditure Statement for the Financial Year 2024-25

(` in crore)

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Source: MSME Annual Report 2024-25

“ The Future Depends On What You Do Today”

-MAHATMA GANDHI

Together, let’s transform grassroots potential into national strength.

-Thank You!

MSME-DFO Bengaluru

🌱 Facilitate. Foster. Flourish.