India BPO Promotion Scheme

BPOs have become a common sight in India over the recent decade and have provided ample of employment opportunities. The government has introduced the Indian BPO Promotion Scheme to help set up new BPO facilities, expand the existing ones, and provide the necessary funding for the betterment of that market.

Overview

The Indian BPO Promotion Scheme provides capital support to those looking to set up a BPO. This scheme provides financial aid which can be utilized to organize a fully-functional office. This in turn helps create employment opportunities across the country, especially via Information Technology (IT), particularly in the digitally deficit areas of the country.

Benefits

What are the benefits that this scheme provides?

The following are the benefits that this scheme provides:

  1. Capital support (50% of actual expenditure) along with special incentives up to ₹1 lakh per seat in the form of Viability Gap Funding (VGF) provided
  2. Endorsed employment for about 1.5 lakh people across the country
  3. Relaxed turnover criteria for BPOs set up in the hilly areas of Jammu and Kashmir, Himachal Pradesh, and Uttarakhand

The scheme also provides special incentives (the incentive will be a percentage of eligible capital support, within a capital of ₹1 lakh per seat. If the eligible capital support is ₹100, and a company has received an added incentive of 5%, they will receive ₹105 as capital support) such as:

Particulars Percentage of incentive received
Promoting local entrepreneur 5
Providing employment to women 5
Providing employment to people with disability 2
Providing employment beyond the required target Up to 10
Setting up operations in a city/town other than the state’s capital 5

Application

What are the stages to apply for this scheme?

There are 2 stages that need to be followed in order to apply to this scheme:

  1. Expression of Interest (EoI)
  2. Request for proposal (RFP)

Documents Required

What are the documents required to apply for this scheme?

The following are the documents required to apply for this scheme.

https://ibps.stpi.in/archive/031016.pdf

You can bid online on the following website – https://eprocure.gov.in/cppp/

For additional information on this scheme, please click here and here.

Refinance Scheme for Small Road Transport Operators

Operating a road transport service requires sufficient funds which may be difficult to meet for a road transport operator. If you too are planning to open a road transporting service or are already in the business, the government’s Refinance for Small Road Transport Operators scheme is the perfect match for you.

Overview

The Refinance for Small Road Transporter Operators scheme is a government scheme set-up to provide hassle-free funds to road transport operators. Timely availability of funds and assistance on various expenditures helps maintain the smooth functioning of this type of business.

Benefits

How does an operator benefit from this scheme?

This scheme helps an operator meet expenditures on:

  • Cost of chassis
  • Body building of the vehicle
  • Initial taxes or insurance
  • Working capital by providing assistance to refinance the current loans

Eligibility Criteria

What is the eligibility criteria to apply for this scheme?

The following is the eligibility criteria for this scheme:

  • All Small Road Transport Operators as defined in the MSMED Act, 2006
  • An individual or an association desirous of owning new transport vehicle(s), for carrying passengers or goods on hire.
  • The borrower should not have defaulted in repayment of loan of any bank / institution

Application

How can a road transport operator apply for this scheme?

A road transport operator can apply for this scheme through:

  • State Financial Corporations (SFCs)
  • SIDCs
  • Banks

For more information on this scheme click here.

Unsecured Loans for SMEs under Growth Capital and Equity Assistance Scheme

In the initial stages of an SME, providing collaterals to banks for availing loans becomes difficult for the institution. The low moratorium period of 365 days, makes it impossible for them to pay back the loan in time too. Furthermore, SMEs are sometimes in businesses that do not have tangible outputs namely viz. Marketing, Brand Building, Creation of Distribution Network, Technical Know-how, R&D, Software Purchase, etc. The unavailability of tangible assets makes it difficult for many lenders to sanction loans. To serve a solution to this problem, SIDBI has initiated the Growth Capital and Equity Assistance Scheme.

Overview:

Under the Growth Capital and Equity Assistance scheme, an SME can get collateral free and high moratorium period loans (unsecured loans).

Benefits:

How does an SME body benefit from this scheme?

An SME body can benefit from this scheme in the following ways:

This scheme offers collateral free loans for all growth-based activities with the following points to consider:

  1. The interest rate is higher (2%-3% depending on your CRISIL SME Rating) than that offered by other banks.
  2. These type of loans fall into a category called mezzanine financing, i.e., the lenders can ask for a share in your company in case you are a defaulter. 

Eligibility Criteria:

What is the eligibility criteria for this scheme?

An SME is eligible for this scheme if you fall under the following categories:

  • SIDBI’s existing customers (meeting internal rating criteria)
  • Units with past 3 years of profitability and 2 years of satisfactory banking credit track record (meeting internal credit rating criteria) 

Application

How can an SME body apply for this scheme?

An SME body can apply for this scheme by following the below listed instructions:

  • Entrepreneur/Entity can approach SIDBI branch for seeking financial assistance and share their profile with SIDBI.
  • SIDBI issues application to the entity if prima facie found support-worthy after scrutiny of profiles on the basis of eligibility criteria.
  • SIDBI may also depending on the quantum of loan required, engage a firm to carry out the Corporate Due Diligence on the entity (cost to be borne by the firm).
  • The entity submits a duly filled detailed application form to SIDBI along with all checklist documents. 

Documents Required

What are the documents required to apply for this scheme

  • The following list of documents are required at the time of application:
  • KYC form – address proof and Identity proof
  • Proof of the loan with SIDBI
  • Copy of CRISIL SME Ratings
  • Copy of last 3 years’ audited financial statements and bank statement for the past 2 years

To know more about this scheme, click here.

Revive your Sick Industrial Unit with this Scheme

Small Scale Industries highly contribute to a country’s GDP making it tremendously beneficial for the economy. The Indian government has many schemes in the favour of these SSI Units. However, many SSI units fail to succeed and are categorised as sick units. This is where the Rehabilitation of Sick Units Scheme comes into the picture.

Overview

The Rehabilitation of Sick Units Scheme is an attempt to help revive sick SSI units before they become irrecoverable. This scheme provides timely loans that can help a sick unit meet its payment obligations and enables banks to take action at an early stage for revival of these units.

Benefits

How does a Sick Industrial Unit benefit from this scheme?

A Sick Industrial Unit benefits from this scheme in the following ways:

  • The scheme provides term loan for purchase of fixed assets and loan for working capital* through a single agency. (The total working capital requirement of such units is inclusive of all fund-based facilities. This has to be taken into account while determining the working capital facility that is eligible for refinance.)
  • No interest on the interest amount for up to three years from the date of commencement of implementation of the rehabilitation programme.
  • Reduction in rate of interest in term loans up to 3% in the case of tiny/decentralised sector units and by not more than 2% for other SSI units.
  • Principal dues may be treated as irregular to the extent of its drawing power. This amount may be funded as Working Capital Term Loan (WCTL) with a repayment schedule not exceeding 5 years.
  • The rate of interest applicable may be 1.50% to 3% points below the prevailing fixed rate or prime lending rate, wherever applicable, to all sick SSI units including tiny and decentralised units.
  • Cash losses are likely to be incurred in the initial stages of the rehabilitation programme till the unit reaches the break-even level.
  • Interest may be charged on the funded amount at the rates prescribed by SIDBI under its scheme for rehabilitation assistance.
  • Interest on working capital may be charged at 1.5% below the prevailing fixed or prime lending rate wherever applicable. Additional working capital limits may be extended at a rate not exceeding the prime lending rate.
  • For meeting escalations in capital expenditure to be incurred under the rehabilitation programme, banks/financial institutions may provide, where considered necessary, appropriate additional financial assistance up to 15% of the estimated cost of rehabilitation by way of contingency loan assistance.
  • Interest on this contingency assistance may be charged at the concessional rate allowed for working capital assistance.
  • Banks may provide the loan for start-up expenses, while margin money assistance may either come from SIDBI under its Refinance Scheme for Rehabilitation or should be provided by State Government where it is operating a Margin Money Scheme.
  • Interest on fresh rehabilitation term loan may be charged at a rate 1.5% below the prevailing fixed or prime lending rate wherever applicable or asby SIDBI / NABARD where refinance is obtained from it for the purpose.
  • Promoter’s contribution towards the rehabilitation package is fixed at a minimum of 10% of the additional long-term requirements under the rehabilitation package in the case of tiny sector units and at 20% of such requirements for other units. In the case of units in the decentralized sector, promoter’s contribution may not be insisted upon.
  • At least 50% of the above promoters’ contribution should be brought in immediately and the balance within six months.
  • Banks should incorporate a ‘Right of Recompense’ clause in the sanction letter and other documents to the effect that when such units turn the corner and rehabilitation is successfully completed, the sacrifices undertaken by the financial institutions and banks should be recouped from the units out of their future profits/ cash accruals.

Eligibility Criteria:

What is the eligibility criteria for this scheme?

A Sick Unit is eligible for this scheme if it falls in the following categories:

  • The SSI unit should be a “sick” unit as per RBI definition. Please refer to this link for the complete definition.
  • It is based on the bank’s conviction that the unit is capable of being restored to normal health within a reasonable time.

Application

How can Sick units apply to this scheme?

SSI units can apply for this scheme by visiting the website of the individual banks and financial institutions for the required application forms.

For instance, the form to be filled for applying to Andhra Pradesh State Financial Corporation can be availed by clicking here.

Documents required

What are the documents required to apply for this scheme?

The documents and forms which needs to be submitted by the applicant is listed on the websites of the respective bank/financial institute. 

List of participating institutions

List of institutions offering the scheme are as follows:

State Financial Corporations 

  • Andhra Pradesh State Financial Corporation
  • Assam Financial Corporation
  • Bihar State Financial Corporation
  • Delhi Financial Corporation
  • Gujarat State Financial Corporation
  • Maharashtra State Financial Corporation
  • Haryana State Financial Corporation
  • Himachal Pradesh Financial Corporation
  • Jammu and Kashmir State Financial Corporation
  • Karnataka State Financial Corporation
  • Kerala Financial Corporation
  • Madhya Pradesh Financial Corporation
  • Orissa State Financial Corporation
  • Punjab Financial Corporation
  • Rajasthan Financial Corporation
  • Tamil Nadu Industrial Investment Corporation Limited
  • Uttar Pradesh Financial Corporation
  • West Bengal Financial Corporation

State Industrial Development Corporations / State Industrial Investment Corporations

  • Andaman and Nicobar Islands Integrated Development Corporation Ltd.
  • Andhra Pradesh Industrial Development Corporation Ltd
  • Arunachal Pradesh Industrial Development and Financial Corporation Ltd
  • Assam Industrial Development Corporation Ltd
  • Bihar State Credit and Investment Corporation Ltd
  • Economic Development Corporation of Goa, Daman and Diu Ltd.
  • Gujarat Industrial Investment Corporation Ltd
  • Haryana State Industrial Development Corporation Ltd.
  • Himachal Pradesh State Industrial Development Corporation Ltd
  • Industrial Promotion and Investment Corporation of Orissa Ltd.
  • Jammu & Kashmir State Industrial Development Corporation Ltd.
  • Karnataka State Industrial Investment Corporation Ltd.
  • Kerala State Industrial Development Corporation Ltd.
  • Madhya Pradesh State Industrial Development Corporation Ltd.
  • Manipur Industrial Development Corporation Ltd.
  • Meghalaya Industrial Development Corporation Ltd.
  • Nagaland Industrial Development Corporation Ltd.
  • Omnibus Industrial Development Corporation of Daman & Diu and Dadra and Nagar Haveli Ltd. [OIDC]
  • Pondicherry Industrial Promotion and Investment Corporation Ltd.
  • Pradeshya Industrial and Investment Corporation of Uttar Pradesh Ltd.
  • Punjab State Industrial Development Corporation Ltd
  • Rajasthan State Industrial Development and Investment Corporation Ltd
  • Sikkim Industrial Development & Investment Corporation Ltd.
  • State Industrial and Investment Corporation of Maharashtra Ltd
  • State Industries Promotion Corporation of Tamil Nadu Ltd.
  • Tripura Industrial Development Corporation Ltd.
  • West Bengal Industrial Development Corporation Ltd
  • Mizoram Industrial Development Corporation Ltd. 

Commercial Banks

  • Alegemene Bank Nederland N.V.
  • Allahabad Bank
  • American Express International Banking Corporation
  • Andhra Bank
  • Bank of America
  • Banque Indosuez
  • Bank of Bahrain and Kuwait B.S.C.
  • Banque National De Paris
  • Bank of Baroda
  • Bareilly Corporation Bank Ltd.
  • Bank of India
  • Benaras State Bank Ltd.
  • Bank of Madura Ltd.
  • Bharat Overseas Bank Ltd.
  • Bank of Maharashtra
  • British Bank of the Middle East
  • Bank of Nova Scotia
  • Canara Bank
  • Bank of Rajasthan Ltd.
  • Catholic Syrian Bank Ltd.
  • Bank of Tokyo Ltd.
  • Central Bank of India
  • Citibank
  • Corporation Bank
  • Dena Bank
  • Deutche Bank
  • Dhanalakshmi Bank Ltd.
  • Emirates Commercial Bank Ltd.
  • Federal Bank Ltd.
  • Grindlays Bank
  • Hongkong and Shanghai Banking Corporation
  • Indian Bank
  • Indian Overseas Bank
  • Jammu and Kashmir Bank Ltd
  • Karnataka Bank Ltd
  • KarurVysya Bank Ltd.
  • Kumbakonam City Union Bank Ltd
  • Lakshmi Vilas Bank Ltd.
  • Lord Krishna Bank Ltd.
  • Mitsui Bank Ltd.

Co-operative Banks: 

  • Andhra Pradesh State Co-operative Bank Ltd
  • Bihar State Co-operative Bank Ltd.
  • Gujarat State Co-operative Bank Ltd.
  • Karnataka State Co-operative Bank Ltd.
  • Kerala State Co-operative Bank Ltd.
  • Maharashtra State Co-operative Bank Ltd.
  • Madhya Pradesh RajyaSahakari Bank Maryadit
  • Manipur State Co-operative Bank Ltd.
  • Meghalaya Co-operative Apex Bank Ltd.
  • Orissa State Co-operative Bank Ltd.
  • Punjab State Co-operative Bank Ltd.
  • Rajasthan State Co-operative Bank Ltd.
  • Tamil Nadu State Co-operative Bank Ltd.
  • Uttar Pradesh Co-operative Bank Ltd.
  • West Bengal State Co-operative Bank Ltd.
  • Delhi State Co-operative Bank Ltd.
  • Apex Co-operative Bank of Urban Banks of Maharshtra & Goa Ltd.
  • Himachal Pradesh State Co-operative Bank Ltd

Other Scheduled Co-operative Banks:

  • Abhyudaya Co-operative Bank Ltd.
  • Bombay Mercantile Co-operative Bank Ltd.
  • Cosmos Co-operative Bank Ltd.
  • Kalupur Commercial Co-operative Bank Ltd.
  • Rajkot Nagrik Sahakri Bank Ltd.
  • Rupee Co-operative Bank Ltd.
  • Sangli Urban Co-operative Bank Ltd.
  • Saraswat Co-operative Bank Ltd.
  • Surat Peoples Co-operative Bank Ltd.
  • Shamrao Vithal Co-operative Bank Ltd.
  • P. Mahesh Urban Co-operative Bank Ltd.
  • The Ahmedabad Mercantile Co-op Bank Ltd.
  • Akola Urban Co-operative Bank Ltd.
  • The Akola Janata Commercial Co-operative Bank Ltd.
  • The Khamgaon Urban Co-operative Bank Ltd.
  • Nagpur Nagarik Sahakari Bank Ltd.
  • Shikshak Sahakari Bank Ltd

For further details on this scheme, please click here.

Scheme for Multiple Fund Requirements for Small Scale Industry Entrepreneurs

Scheme for Multiple Fund Requirements

Capital – a critical resource for every Small Scale Industry business is broadly categorised in two forms. The short-term capital is utilised for daily expenditures, while the long-term is utilised for assets and investments. SSI Businesses, most often, require loans to meet these capital needs; but as the nature of these loans is quite different, they are usually sourced from different institutions. With the Single Window Scheme, all these facilities are available in one place.

Overview

The Single Window Scheme helps an SSI promoter avail both; a term loan for fixed assets, and working capital loan through the same agency. An important point to note here is that the loan limit under this scheme cannot exceed ₹.

Benefits

How can an SSI unit benefit from this scheme?

An SSI Unit can benefit from this scheme in the following ways:

  • Procurement of factory land and construction of building spaces.
  • Procurement of machinery like lab equipment, testing equipment, etc.
  • Meeting capital requirements like raw materials, stock-in-progress, finished goods
  • Additional assistance for meeting the urgent needs of raw material.

Eligibility

What is the eligibility criteria for this scheme?

An SSI Unit is eligible for this schemes if it falls in the following categories:

  • Entrepreneurs setting up new projects in SSI / Tiny sector
  • New promoters acquiring unencumbered fixed assets of existing SSI concerns from PLIs
  • Existing well-run units undertaking modernisation / technology upgradation
  • Potentially viable sick units undertaking rehabilitation scheme

Application

How can an SSI Unit apply for this scheme?

An SSI Unit can apply for this scheme by visiting the banks and financial institutions listed below:

  • State Financial Corporations (SFCs)
  • Twin function IDCs
  • Scheduled commercial banks
  • Eligible state co-operative banks
  • Scheduled urban co-operative banks

For more information regarding this scheme, kindly click here.

Simplify your loan requirements with the Composite Loan Scheme

In the early stages of a business, MSMEs often find the need to apply for loans in order to fund their processes. Sometimes they have to apply for two separate loans to fund working capital requirements and long term projects. Needless to say the hassle of applying for two separate loans can be avoided by applying for a single loan, i.e. the Composite Loan Scheme.

Overview

The Composite Loan Scheme allows an MSME to apply for a single loan to fund working capital requirements and long term projects instead of two separate loans.

Benefits

How does an MSME benefit from this scheme?

An MSME can avail of composite loans up to 75% of the value of the project or ₹ 25 lakh, whichever is lower.

Eligibility Criteria

What is the eligibility criteria for this scheme?

Those projects with a debt to equity ratio of 3:1 in the total venture of outlay (i.e., cost of the project plus working capital requirement) after taking into account the amount of investment/subsidy/incentive available for the project are eligible to apply for this scheme.

Application

How can an MSME apply for this scheme?

An MSME can apply for this scheme offline by approaching banks and state finance corporations.

An MSME can apply for this loan online here.

General Conditions

What are the general conditions under this scheme?

The following are the general conditions under this scheme:

  1. Working Capital loan should be availed within one year from the date of commencement of production.
  2. The unit should open a current account with a designated bank and the amount of Working Capital of the loan will be credited as and when disbursed by the Corporation.
  3. Support for preparation of DPR up to 0.5% of the project cost or ₹1 lakh whichever is lower. This support will be given subject to the fact that the project is sanctioned by NABARD. The grant amount would be within the overall cap of 20% stated above.
  4. The unit should route its entire transaction of the  business including all the receipts and payments through this account only.
  5. Exclusive grant support for taking forward SHGs/farmers’ clubs/producer groups to the stage of having a Producers Organization. Separate scheme would be formulated for this purpose when need arises for such a support.
  6. The unit should repay the entire Working Capital loan sanctioned by the Corporation at once in case the unit approached the bank for more Working capital.
  7. Working Capital Component should be repaid over a period not exceeding 10 years (including moratorium up to 13 years) and the term loan Component over a period not exceeding 8 1/2 years (including moratorium of 18 months).
  8. The unit should provide monthly stock statement showing the position of inventory level of the Corporation. If they fail to provide the same, the Corporation may recall the loan.
  9. Any other support felt necessary for enabling a Producers Organization function in a better and profitable manner subject to the recommendation of ED Committee and with the approval of Chairman/MD.

For further information on this scheme, please click here.

Dairy Entrepreneurship development scheme

Dairy farming is an excellent opportunity for self-employment and income generation in India. In an attempt to further the interest and development of this field, the government has the perfect funding solution with the Dairy Entrepreneurship Development Scheme.

Overview:

The Dairy Entrepreneurship Development Scheme offers financial assistance in the form of interest free loans (IFL) to the beneficiary.

Benefits:

The following table states the amount of subsidy offered for each component:

Serial No. Component Unit cost Pattern of assistance
No. of units Farmer category Subsidy outlay (%) Subsidy limit (₹)
1. Establishment of small dairy units with crossbred cows/ indigenous milk cows like Sahiwal, Red Sindhi, Gir, Rathietc / graded buffaloes up to 10 animals ₹5.00 lakh for maximum 10 animal unit – minimum unit size is two animals 10 animals Others 25.00 ₹1.25 lakh
SC/ST farmers 33.33 ₹1.67 lakh
2 animals Others 25.00 ₹25,000.00
SC/ST farmers 33.33 ₹33,300.00
2. Rearing of heifer calves – cross bred, indigenous descript milch breeds of cattle and of graded buffaloes – up to 20 calves ₹4.80 lakh for maximum 20 calf unit – minimum unit size of 5 calves 20 calves Others 25.00 ₹1.20 lakh
SC/ST farmers 33.33 ₹1.60 lakh
5 calves Others 25.00 ₹30,000.00
SC/ST farmers 33.33 ₹40,000.00
Farmer category Subsidy outlay (%) Maximum ceiling (₹)
3. Vermicompost (With milch animal unit. To be considered with milch animals and not separately) ₹20,000.00 Others 25.00 ₹5,000.00
SC/ST farmers 33.33 ₹6,700.00
4. Purchase of milking machines/milk testers/bulk milk cooling units (up to 2,000 litre capacity) ₹18.00 lakh Others 25.00 ₹4.50 lakh
SC/ST farmers 33.33 ₹6.00 lakh
5. Purchase of dairy processing equipment for manufacturing milk products ₹12.00 lakh Others 25.00 ₹3.00 lakh
SC/ST farmers 33.33 ₹4.00 lakh
6. Establishment of dairy product transportation facilities and cold chain ₹24.00 lakh Others 25.00 Rs,6.00 lakh
SC/ST farmers 33.33 ₹8.00 lakh
7. Cold storage facilities for milk and milk products ₹30.00 lakh Others 25.00 ₹7.50 lakh
SC/ST farmers 33.33 ₹10.00 lakh
8. Dairy marketing outlet / Dairy parlour ₹56,000.00 Others 25.00 ₹14,000.00
SC/ST farmers 33.33 ₹18,600.00
      Clinic Category Subsidy outlay Maximum ceiling (₹)
9. Establishment of private veterinary clinics Mobile clinic – ₹2.40 lakh and Stationary clinic – ₹1.80 lakh Mobile Others 25.00 ₹60,000.00
SC/ST farmers 33.33 ₹80,000.00
Stationery Others 25.00 ₹45,000.00
SC/ST farmers 33.33 ₹60,000.00

The funding pattern would be as follows –

  • Entrepreneur contribution – Minimum 10%of the outlay
  • Back ended subsidy – as mentioned in the above table
  • Effective bank loan – Balance portion, minimum 40% of the outlay

Eligibility Criteria:

What is the eligibility criteria for this scheme?

The eligibility criteria for this scheme is as follows:

  • Farmers, individual entrepreneurs, NGOs, companies, groups of the unorganised and organised sector (self-help groups, dairy cooperative societies, milk unions, milk federations etc.)
  • More than one member of a family can be assisted under the scheme, provided they set up separate units with separate infrastructure at different locations. The distance between the boundaries of two such farms should be at least 500m.

Application:

How can a beneficiary apply for this scheme?

The beneficiary needs to apply to the bank for sanctioning of the project.

List of eligible financial institutions where the beneficiary can apply for the subsidy is listed below:

  • Commercial Banks
  • Regional Rural Banks
  • State Cooperative Banks
  • State Cooperative Agriculture and Rural Development Banks
  • Such other institutions, which are eligible for refinance from NABARD

An individual can avail assistance for all the components under the scheme but can apply only once for    each component

For the application form, please click here.

For more information about this scheme, kindly click here.

Reduce your R&D overheads with this Scheme

Innovative ideas and technological advancement are the products of an efficient Research and Development Department. However, funding this department is generally heavy on a company’s overheads. Here’s where the R&D Funding scheme offered by the Department of Electronics and Information Technology (DeiTy) comes into the picture.

Overview

The R&D Funding Scheme provides funds to an SME in the areas of Research and Development, and technical collaboration The funding provided varies depending upon the total cost of the project.

Benefits

How does an SME benefit from this scheme?

The fund sanctioned for the Research and Development department of an SME helps it in the following ways:

  • Current product modifications
  • Creation of new products
  • Implementation of better technologies
  • Development of a secure future in advance of business needs
  • Improved processes and enhanced performance
  • Launch of smarter ideas
  • Access to newer markets
  • Reduce product costs

Eligibility Criteria

What is the eligibility criteria for this scheme?

  • The SME must be in existence for at least two years from the date of incorporation
  • The SME/institution/firm should be registered under ISO 9001:13485

Application

How can an SME apply for this Scheme?

  • The SME can apply for this scheme to DeiTy in the prescribed pro forma.

Documents Required

Which documents are required to apply for this scheme?

The following are the documents required to apply for this scheme:

  • Title of the Project
  • Information about the SME (Name, Address, Legal status)
  • Details regarding the Chief Investigator
  • Nature of the Project
  • Objective of the Project
  • Brief outline of the Project
  • Expected outcome in physical terms
  • Agency with which link up is established/proposed
  • Duration of the Project
  • Year-wise break-up of physical achievements with specific intermediate milestones (in terms of aims and objectives)
  • Likely end users
  • Name of the SMEs participating jointly in the project
  • Total budget outlay
  • Contribution of project implementing/and other organisation in total budget outlay, DeiTy contribution
  • Wherever applicable – share of the industry, collaborating agency, and any other assistance along with DeiTy’s support required in total cost of project should be provided under various budget heads
  • Annual reports, Company brochure, Brief history of the electronics company including products being made, capacities, related collaborators, achievements, and capabilities need to be provided if necessary
  • Recent major achievements of in-house R&D unit of the electronics company in development of new products/processes, technology export, patents taken, and whether in-house R&D unit of the firm is recognised by DSIR
  • Any other information in support of the proposal

Additionally, the details of the proposal should also contain the following –

  • Background information
  • Technical information
  • Financial details

For further details on this scheme, click here.

Sub-Scheme for Mega Leather Clusters

The leather industry holds promise in the Indian economy. Known for its high export value, it is an employment intensive industry. Today, it operates on low-profit margins on account of fierce competition in the international market. However, if individual leather manufacturing units form an alliance, they can avail certain benefits to better their production under the Sub-Scheme for Mega Leather Clusters.

Overview:

The Sub-Scheme for Mega Leather Clusters provides additional amenities to allow smooth functioning of production of leather manufacturing units under clusters. The concept of Mega Leather Clusters (MLCs) seeks to address the constraint of large infrastructure with integrated production chains in the country.

Benefits:

How does a mega leather cluster benefit from this scheme?

A mega leather cluster can benefit from this scheme in the following ways: 

An area designated as a mega leather cluster, following services are provided:

  1. A secured compound wall, wire fence and site development
  2. All basic amenities like roads, power supply, water supply
  3. A warehouse, trade/ display/ exhibition/ convention/ information center, etc.
  4. Ready-to-use factory sheds with plug-in facilities for machinery/equipment
  5. Training Center, Recruitment Center, Workflow Training Center
  6. Product Design & Development Support Center, Testing Laboratory, Quality Benchmark Center, Material Research, Basic Product Technology Research, Pre-competitive Collaborative Research and Market Research infrastructure
  7. Export services-related infrastructure including Clearing Agents, Customs/Central Excise/ Service Tax offices and DGFT liaison office

Details on funding:

Here is how the government would provide financing:

  1. The government would provide a maximum of 50% of project cost, subject to limitations defined by the area under the mega leather cluster:
Mega Leather Cluster with land area (in acres) Financial assistance to be provided by Government of India
25 to 60 (for the land set up with tanneries) Limited up to ₹50 crore
61-100 Limited to ₹70 crore
101-150 Limited to ₹105 crore
More than 151 acres land Limited to ₹125 crore

 

  1. A Special Purpose Vehicle has to be set up for the Mega Leather Cluster. Trust and Retention Account (TRA) will be opened by an SPV with any nationalized bank and funds will be released by the government in four installments through Electronic Clearing System. The funds would be released as described below:
Installment In order to process the claim for the amount, you would need to submit: % of
Installment I 1.       Statement for project specific TRA indicating the proportionate contribution (25%) deposited by Special Purpose Vehicle in the Trust and Retention Account 25%
Installment II 1.       Details as to the usage of 2/3rd of the first installment

2.       Statement for project specific TRA indicating the proportionate contribution (25%) deposited by Special Purpose Vehicle in the Trust and Retention Account

30%
Installment III 1.       Details as to the entire usage of first installment, and 2/3rd usage of the 2nd installment

2.       Submitting the statement of project-specific Trust and Retention Account indicating the proportionate contribution (30%) deposited by Special Purpose Vehicle in Trust and Retention Account

3.       Proof of proportionate expenditure made by the Special Purpose Vehicle out of its own fund

30%
Installment IV 1.       Completion record of entire infrastructure of the project as per the approved Detailed Project Report

2.       Completion of 25% of the leather units in MLC initiate their production activity certified by the Special Purpose Vehicle, Project Management Consultant, and Utilization Certificate (for the second and third installment) are produced

15%

 

  • Claims will be forwarded by Special Purpose Vehicle to DIPP along with the mentioned documents: Utilization Certificate in the format of GFR 19A, Pre-Receipt Bill, and Surety Bond
  • Creation of separate accounts by SPV for the funds released by DIPP, subject to audit by the Comptroller & Auditor General of India 

Eligibility Criteria:

What is the eligibility criteria for this scheme?

The eligibility criteria for this scheme is as follows:

Units involved in production of the following are eligible to apply:

  • Footwear and footwear components
  • Leather goods (inclusive of gloves)
  • Leather garments
  • Saddlery
  • Harness items

Application:

How can mega leather clusters apply for this scheme?

The mega cluster needs to send the applications directly to Under Secretary (Leather), Department of Industrial Policy and Promotion, Ministry of Commerce & Industry, Udyog Bhavan, New Delhi. 

Documents Required:

Documents required for this scheme?

The documents required to apply for this scheme can be found here.

For further queries and guidelines with regards to this scheme, click here.

DEVELOPMENT OF PRODUCTION INFRASTRUCTURE SCHEME

The coir board has been implementing various schemes for the development of the coir industry. Apart from helping in setting up new coir units, the Development of production infrastructure scheme assists in modernization of existing units as well.

Overview:

The scheme ‘Development of Production Infrastructure’ aims to provide assistance for setting up new coir units as well as modernizing the existing units in order to increase the utilization of coconut husk and generate more rural employment.

Benefits:

How can an MSME benefit from this scheme?

An MSME can benefit from this scheme in the following ways:

  • Under the DPI scheme, the Coir Board financial assistance is provided for setting up of coir units with a project cost up to ₹00 lakh
  • Subsidy will be provided at 25% of the project cost subject to a maximum of ₹00 lakh for setting up of de-fibering unit, ₹4.00 lakh for automatic spinning unit and ₹5.00 lakh for others, including coir pith unit
  • For a composite or a multiple unit, the maximum monetary ceiling of assistance would be ₹00 lakh
  • For calculation of subsidy amount, the cost of building will be restricted to a maximum of ₹00 lakh for de-fibering and coir pith units and ₹6.00 lakh for others including automatic spinning unit
  • The scheme also provides for extending financial assistance up to ₹00 lakh for modernisation/ renovation of the existing units

Eligibility Criteria:

What is the eligibility criteria for this scheme?

The eligibility criteria to apply for this scheme is as follows:

  • Coir units that want to take the assistance under this scheme should be registered with the Coir Board under Coir Industry (Registration) Rules, 2008 and also the industries department of the state in which the unit is located
  • Units with project cost above ₹10.00 lakh or more than the ceiling of Coir Udyami Yojana (CUY) are eligible for this scheme
  • There should be availability of the power connection and a generator in the location of the coir unit.
  • The subsidy under this scheme is available to only those entrepreneurs who have not availed any other state/central government scheme like CUY

Application:

How can an MSME apply for this scheme?

An MSME can apply for this scheme in the following ways:

  • The unit shall submit the application in the prescribed format for grant of financial assistance. This applies for new units under the scheme, within 6 months from the date of commencement of production of the unit.
  • Date of commencement of production should be certified by the General Manager, District Industries Centre (DIC) of the respective area

MSMEs can access the application forms and more information regarding this scheme here