Objective of the scheme
To provide various assistance to Micro, Small and Medium enterprises engaged in Madhya Pradesh.
Administration of scheme
M.P. MSME Investment scheme 2017 is administered by the Ministry of Micro, Small and Medium Enterprises, Government of India.
Various benefits available under MSME Investment scheme 2017
- 1. Assistance on investment in plant & machinery for new business units set up
- 2. Assistance on infrastructural development
- 3. Assistance on contribution to Provident Fund
- 4. Quality Assurance Certifications expenses reimbursement
- 5. Registration of Patents and IPRs expenses reimbursement
- 6. Assistance on setting up of Power loom business
- 7. Assistance on development of Industrial complex etc.
- 8. Assistance on establishment of Waste Management System
Quantum of Financial Assistance under various categories
1. Industry Development Grant
The quantum of grant eligible under this scheme is to the extent of 40% of amount invested in plant and machinery in 5 Equal annual instalments to eligible MSMEs
However units located in following specified areas shall not eligible for above grant
A. Nagar Nigam Notified area limit
B. Town or city having population of 4 lakh or more as per 2011 censes
However units set up in the government land allocated for industrial purpose by the state government or its undertaking will be eligible for grant under the scheme even located in areas as mentioned in above clause (A) and (B).Time limit for filing of application for above grant is 90 days from the date of commencement of commercial production.
2. Financial Assistance for Infrastructure Development
This assistance is availed only to entrepreneur who purchase Land for establishment of medium Enterprise, here eligible expenditure means the expenditure incurred on infrastructural development for road, water, & electricity supply up to premises and amount in form of subsidy will be 50% of expenditure subject to Rs. 25 Lakh. Only unit’s commenced production during effective period of MP MSME Scheme 2017 will be eligible for above assistance.
List of eligible expenditure : –
a. Expenditure incurred on development of road from Main road up to the business premises.
b. Expenditure incurred on electrification from Power station\ Electricity center up to business premises.
c. Expenditure incurred on laying of pipeline for water supply from source or main pipeline up to the business premises.
Time limit for application is 90 days from the date of commencement of commercial production. Certification of expenditure incurred on infrastructural develop is required from CA or chartered engineer.
3. Reimbursement of expenditure incurred by way of contribution to PF
Reimbursement of 100% of amount incurred by way of employer contribution to contributory provident fund(CPF) up to 5 Year subject to Rs. 5 lakh. This assistance will be given on half yearly basis. Assistance will be available only in case where at least Rs. 1000/- per employee have been contributed and there are more than 10 employees.
Time limit for filing of application is 90 days from the end of the half year i.r.o which reimbursement of CPF expenditure is required.
4. Reimbursement of expenditure of “Quality Assurance Certification”
Reimbursement of 50% of amount incurred on obtaining Quality Assurance Certification maximum up to Rs. 3 Lakh. Further there is no time limit for application. Assistance is also available i.r.o. of more than one Quality Assurance Certification by one unit but overall amount of assistance shall not exceed Rs. 3 lakh.
5. Reimbursement of expenditure incurred on “Patent\IPR registration”
Reimbursement of 100% of amount incurred maximum up to Rs. 5 Lakh on Patent\IPR registration of products\ production processes. It is compulsory to do the production of patented products or process. Assistance is also available i.r.o. of more than one Patent/IPR registration by one unit but overall amount of assistance shall not exceed Rs. 5 Lakh. There is no time limit for filing application.
Following are eligible expenditures
a. Amount deposited with patent registration application
b. Expenditure incurred on established plant and its decoration for patent of the product
c. Expenditure incurred on seeking consultancy or services from specialist during the patent registration process.
6. Assistance on “Power loom up gradation”
Capital Assistance on expenditure incurred during effective period of MP MSME Scheme on Power loom upgradation as per INSITU Upgradation scheme of Indian Government. Assistance will be lower of 25% of upgradation cost or 100% of cost of upgradation remaining after deducting any assistance received from central government. There is no time limit of application for getting assistance in respect of expenditure incurred by way of Power loom upgradation.
7. Assistance to “Developer of Multi-storey Industrial complex or Industrial Area”
Capital subsidy in form of 20% of cost of expenditure maximum up to Rs. 2 Crores is available to developer of Multi-story Industrial complex or Industrial area.However assistance shall be available on a condition that minimum area covered for development of industrial area is 5 Acre or Minimum carpet area for development of multi-story industrial complex is 10000 square feet. At least five industrial units are working on such Industrial area/ multi-story industrial complex. Amount calculated for the purpose of assistance shall be cost incurred up to the date as accepted by competent authority or date of date of completion of multi-story industrial complex/ industrial area whichever is earlier. It is further clarified that completion of multi-story industrial complex or industrial area means at least 5 industrial units have commenced production in such complex or area after completion of infrastructural development. Time limit for filing of application is 90 days from the date of completion of multi-story industrial complex/industrial area.
8. Assistance on establishment of Waste Management system
Assistance in form of capital subsidy which is lower of 50% of amount invested in establishment of “Waste Management System” such as ETP, STP etc. or Rs. 25 lacs. Expenditure incurred on establishment of waste management system shall be on or after 01/04/2018.Time limit for filing application is 90 days from the date of establishment of waste management system.