Incentives made available for MSME industry

The Ministry of Micro, Small and Medium Enterprises (MSME) has implemented various programmes / MSME schemes for the development and promotion of MSMEs Industry across the country. One of the pressing issues that is impeding the growth of MSMEs in India is the lack of modern technology and equipment. To provide immediate relief to the MSME sector, various announcements (in addition to the various MSME schemes) have been made under the Atmanirbahar Bharat Package.

Incentives Available

1. The tech upgradation scheme was launched by Union Minister for MSME, Narayan Rane on November 19, 2021 which will help in meeting the technology-related requirements of enterprises in the services sector and has a provision of 25 per cent capital subsidy for procurement of plant and machinery and service equipment through institutional credit to the SC-ST MSEs without any sector-specific restrictions on technology up-gradation.
2. The government has discontinued the Credit Linked Capital Subsidy Scheme for Technology Upgradation scheme that was operational till March 2021.
3. Rs. 20,000 crore Subordinate Debt for MSMEs.
4. Rs.3 lakh crores Collateral free Automatic Loans for business, including MSMEs (The existing overall guarantee limit under ECLGS has been enhanced from Rs. 3 lakh crore to Rs. 4.5 lakh crore)..
5. Rs. 50,000 crore equity infusion through MSME Self-Reliant India Fund
6. New Revised criteria of classification of MSMEs.
7. New Registration of MSMEs through ‘Udyam Registration' for Ease of Doing Business.
8. No global tenders for procurement up to Rs. 200 crores.
9. "Champions" Portal has been launched in June 2020 which covers many aspects of e-governance including redressal of grievances and handholding of MSMEs.
10. Clearing of MSME dues by the Government and Public Sector Units (PSUs) within 45 days.

Udyam Registration is a pre-requisite for availing the benefits of schemes/programmes of the Ministry of MSME and for availing the benefits under Priority Sector Lending of RBI.

Also Read:

• Development Initiatives by Govt. for MSME & SSI
• Over Rs. 75,000 crore paid to MSME vendors between June and October, 2021