“Build to last” “ Build to adapt” the way ahead.

Have you ever heard of Choluteca Bridge?

I hadn’t heard of the bridge until recently. It’s a 484 metre long bridge over a Choluteca river in Honduras in Central America. The bridge on the river Choluteca was a gift to the people of Honduras from Japan in the year 1996 (though an older one had existed since 1930s).According to extreme environmental conditions of the region, the Japanese ensured the quality of construction, the reliability and the engineering were all best-in-class.

It was built to withstand the hurricanes and high winds plaguing the region. In short, the new bridge was built to last.

The bridge lasted, indeed. In 1998, the massive destruction wrought by Hurricane Mitch changed the course of the river itself

There was a 75 inches of rain in four days equivalent to what they had received in last 6 months,7000 people lost their lives. All the bridges in Honduras destroyed and it remain unaffected. But the trouble was the road leading to it and the road leaving both swept away and it no longer flowed under the bridge. Overnight – as it were – the new bridge suddenly became irrelevant and useless.

But the lesson from the Choluteca Bridge is more pertinent for all of us in today’s scenario. As the world is changing in many ways, we may have never imagined. The Choluteca Bridge is horrifying allegory or a terrific example that what can happen with our careers, our Businesses, our lives. As world is getting transformed, we should always be ready to adapt a change, after all change is the constant thing in the world.

Whenever you look at your career, think twice before you take one more course to become an expertise in a particular area or before spending money on refurnishing your old office, thinking of opening more branches in every nook and corner of the country? Think again. It all might soon become redundant.

We all are focusing on building the strongest, most sophisticated product or service without thinking of possibilities that the need could vanish, the market could change. The challenge for us is that we get focused on creating the best solution to a given solution by forgetting the problem itself might change. In a nutshell, we focus on the bridge and forget the possibility that the river could change the course.

“Build to last” might have been popular mantra but “ Build to adapt” is the way to go.

Edited : CA Alok Jain, Shivani Khandelwal

Credits : Medium.com

Background of the scheme

In a bid to boost credit availability to Micro, Small and Medium Enterprises (MSMEs), Finance Minister Arun Jaitley has launched a web portal through which one can avail loans up to Rs 1 crore in just 59 minutes.The portal will enable principal approval of loans up to Rs 1 crore for MSMEs from Small Industries Development Bank of India (SIDBI) and 5 Public Sector Banks (PSBs) -State Bank of India, Bank of Baroda, Punjab National Bank, Vijaya Bank and Indian Bank.

The web portal is www.psbloansin59minutes.com. “The portal sets a new benchmark in loan processing and reduces the turnaround time from 20-25 days to 59 minutes,” the finance ministry said in a statement. Upon approval, the loan will be disbursed in 7-8 working days. On this website, in-principle approval of loans will not require any physical documents.

PSB Loan in 59 minutes is a MSME Loan focused on automation of the Loan Process in such a way that one can get eligibility letter, Approval in less than 60 minutes and can choose the bank from the given list for a smoother MSME Loan process.

Objective of the scheme

PSB Loans or Public Sector Banks loans in 59 minutes is an online marketplace, which enables the business individuals to apply for a Small Business Loan with Loan Amount starting from Rs 10 Lakh to Rs 1 Crore in just 59 minutes. This initiative was taken to ease the MSME Business and promote self-employed business model in India by reducing the loan approval process and long queues at the bank. PSB Loans in 59 minutes aims at approving the business loan in 59 minutes thus reducing it significantly from a long 30 day process and expected to be disbursed in 7-8 working days, if approved.

Quantum of benefits available under PSB loans in 59 Minutes

1.Loan Amount starting from Rs 10 Lakh to Rs 1 Crore: PSB Loans in 59 minutes helps in providing loan amount starting from Rs 10 Lakh to Rs 1 Crore to all the business individuals so any business requirement small or big can be met easily with the mentioned loan amount.

2.Rate of Interest: The rate of interest for PSB Loans in 59 minutes starts from 8% onwards.

3. Minimal Documentation: With PSB Loans in 59 minutes, the entire process of a Small Business Loan for MSMEs is expected to become super quick and hassle free that too with minimal documentation.

4.Advanced Technology Backed Loans: PSB Loans in 59 minutes processes the loans without human intervention till the stage of sanction or the disbursement. The analysis process is done from the various sources of the loan applicant’s financial profile.

5.Apply at Multiple Banks: PSB Loans in 59 minutes provides a convenient process for the loan applicants who can apply for a Small Business Loans at multiple times in one go.

6.Safe and Secure: The platform understands the safety of the information given by the Loan Applicants. The entire data of the applicants is safe and secure with the highest level of security.

7.CGTMSE Coverage:This scheme also provides the benefit of CGTMSE Scheme cover.

8.Integration with Govt. Facilities:PSB Loans in 59 minutes is integrated with the latest facilities like Income Tax Return, GST, and Bank statement so it helps in decision making of the loan application.

9.No human intervention : The Loan is processed without human intervention till sanction and/or disbursement stage

Eligibility criteria

For the Business which already exist the borrower should be GST, IT compliant and should have Six Months Bank Statement. He should also MSME registered, the Loan Eligibility will be determined on the following factors:

1.Income/Revenue

2.Repayment Capacity of the Borrower

3.Existing credit facilities

4.Other factors set by the Financial Lender

How to apply

Follow the steps given below for applying under PSB Loans in 59 minutes, also refer this video tutorial for understanding the whole procedure for application.

https://www.youtube.com/watch?v=0aJw7JHjrzM

Step1: Register on PSB Loans in 59 minutes portal

1.Go to https://www.psbloansin59minutes.com

2.Register yourself by filling in your name, Email Address, mobile number and click on ‘Get OTP’

3.Enter the OTP received on the mobile number

4.Agree to the Terms and Conditions mentioned below in the checkbox

5.Click on ‘Proceed’ after entering all the columns

6.Create a Password for your account for future reference

Step2:Answer 4 questions

You need to answer four simple questions such as whether you are registered with GST and have been filing your GST returns regularly and have never defaulted on a loan.

Step3:Provide your GST details

Step4:  Provide tax info

You can either upload your tax returns in XML format or login with your tax credentials — your PAN and date of incorporation.

Step5:Provide bank account info

Step6:Provide details of directors, proprietors and partners

1.Aadhar Card

2.PAN Card

3.Net worth certificate

4.Profit sharing ratio of partners/Share holdingpatern

5.Address

6.Qualification/Experience

7.Details about personal belongings of main directors, proprietors and partners

Step7:Provide loan info

Now you have to provide details of your business, the purpose of loan, any collateral security and any previous loans.

Step8:Select the bank

Select the bank from where you want a loan. Currently, about a dozen banks are linked with this website.

Step9:Pay fee

You will have to pay a convenience fee of Rs 1,000 + GST.

Step10:Download approval letter

This is the last step. Your approval letter is ready to be downloaded

List of documents required for applications: –

Loan Applicant with existing business can apply for small business loan with the following documents:

1.GST Identification Number (GSTIN), GST User Name and OTP

2.Latest 3 year ITR in the format of XML

3.Last 6 months Bank Statement in PDF Format: The Loan Applicant can upload Bank Statement for maximum three bank accounts on the portal. It is preferable to upload the Bank Statement having the major bank activities

4.Details of the Loan Required

6.Details of Proprietorship/ Partners/ Directors

7.E-KYC Documents of the Loan Applicant

FAQ’S on PSB Loans in 59 minutes

https://www.psbloansin59minutes.com/faq

Background of the scheme

The Government of India announces various schemes to encourage self-employment, which is a thriving factor for India’s economy.

Objective of the scheme

The State Government of Madhya Pradesh introduced MukhyamantriYuvaUdyami Yojana on August 1, 2014 with an aim to spread an entrepreneurial culture among the youth of the state and to engage them in gainful employment. The prime intention of MukhyamantriYuvaUdyami Yojana is to extend support in areas of enterprise creation and skill development training to generate employment by offering financial assistance to people of all categories.

Concerned bodies in charge of Scheme Implementation

The Department of Commerce, Industry and Employment is the nodal department to implement this scheme.

Quantum of benefits available under MMYUY scheme

As margin money, the State Government will grant 15% of the project cost or a maximum of Rs.12 Lakhs. The interest subsidy is 5% of the cost of the project & 6% of the cost of project for women per year till 7 years. As per the scheme, the loan amount should be paid by the applicant apart from the margin money supplied by the Government. The loan should be repaid within 7 years from the date of approval of the loan. The payment can be initially postponed upto 6 months from the loan approval date.

Cost of project

The scheme renders financial support to set up one’s own business in the form of loan. To take advantage of the scheme, the project should cost between Rs. 10 Lakh and 1 Crore. The loan will be disbursed within 15 days from the acceptance of the application.

Eligibility criteria

Entrepreneurs who satisfy the following criteria can apply for this scheme:-

1.To exploit the scheme benefits, the applicant should be a permanent resident of Madhya Pradesh.

2.The applicant should have qualified 10th standard to be eligible.

3.The age limit of the applicant should be from 18 to 40 years to be applicable.

4.The applicant referred to as a defaulter by any of the nationalized or private sector banks is not eligible.

5.Applicant who is already a beneficiary of any State Government schemes or any other entrepreneur schemes is not allowed to apply for this scheme.

6.Apart from establishing a manufacturing or service industry, the scheme is made unavailable for any other business activities.

How to apply under MMYUY Scheme

The application for this scheme can be submitted either online or offline.

Online Application Process

Step 1: The applicant can apply online by visiting the official website of MSME, Madhya Pradesh.

https://msme.mponline.gov.in/portal/Services/DCI/Index.aspx

Step 2: The candidate should register in case of being a new user. The candidate can directly login if registered already by selecting the scheme from the drop-down list.

Step 3: On logging in, the application form should be filled with appropriate details and submitted after uploading the necessary documents.

Offline Application Process

The application form is available in every district office which should be submitted along with the project report and prescribed documents. Download the application form by clicking on the given link.

https://www.indiafilings.com/learn/wp-content/uploads/2018/07/MYUY_Application-form.pdf

Background of the scheme

The major problem faced by the MSEs is non-availability of timely and adequate credit at reasonable interest rate which is most important to start and running successfully a business venture. One of the major causes for low availability of bank finance to this sector is the high risk perception of the banks in lending to MSEs and consequent insistence on collaterals which are not easily available with these enterprises. The problem is more serious for micro enterprises requiring small loans and the first generation entrepreneurs. In its over 18 years of operations, CGTMSE has approved over 31 lakh of guarantees covering loans amounting to over 1.53 Lakh crore on cumulative basis. The units supported by CGTMSE have generated employment to the tune of above 1 crore and export earnings of 8,980 crore. Approximately, 16% women and 8% SC/ST/Minorities entrepreneurs have been benefited by the scheme.

Objective of the scheme

The whole idea behind this scheme is to provide financial assistance to micro and small enterprises without any third-party guarantee/ or collateral. These schemes provide the assurance to the lenders that in case of default by them, a guarantee cover will be provided by trust.

Administration of scheme

Credit Guarantee Trust Fund for Micro and Small Enterprises subsidy scheme is administered by the Ministry of Micro, Small and Medium Enterprises, Government of India.

Concerned Department involved in Scheme Implementation

The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched in 2000 by the Government of India (GOI) to make available collateral-free credit to the micro and small enterprise sector. Both the existing and the new enterprises are eligible to be covered under the scheme. The Ministry of Micro, Small and Medium Enterprises, GOI and Small Industries Development Bank of India (SIDBI), established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to implement the Credit Guarantee Fund Scheme for Micro and Small Enterprises. The scheme was formally launched on August 30, 2000. The corpus of CGTMSE is being contributed by the GOI and SIDBI in the ratio of 4:1 respectively and has contributed Rs. 2477.78 crore to the corpus of the Trust up to May 31, 2016. As announced in the Package for MSEs, the corpus was to be raised to Rs.2500 crore by the end of 11th Plan.

Quantum of benefits available under CGTMSE scheme

Under Credit Guarantee Fund Scheme for Micro and Small Enterprises the beneficiaries are eligible to get collateral free loan up to a limit of 2 crores on payment of guarantee fee to bank by the beneficiary which will be further passed on to CGTMSE trust for the guarantee given by them.

The CGTMSE trust shall provide guarantee as under: –

*Women entrepreneurs/ Units located in North East Region (incl. Sikkim) other than credit facility up to Rs.5 lakh to micro enterprises.

Annual Guarantee fees charged (AGF)

With a view to incentivize the borrowers with good repayment track record, AGF would be charged on the outstanding loan amount instead of guaranteed amount for credit facilities sanctioned / renewed to MSEs on or after April 01, 2018 as detailed below:

*AGF will be charged on the guaranteed amount for the first year and on the outstanding amount for the remaining tenure of the credit facility.

MSE Retail Trade Activity

AGF will be charged at 2% of the guaranteed amount for the first year and on the outstanding amount for the remaining tenure of the credit facility. Differential pricing structure depending upon NPA / Claim payout ratio of the MLI will also be applicable on the AGF as per CGTMSE Circular No.107/2015-16 dated January 28 given below

Eligibility criteria

Eligible borrowers under this scheme

Any facility given on the basis of third party guarantee and where the type of activity is not manufacturing, services and retail trade shall be disqualified for coverage under the scheme. Partial collateral security model introduced where the MLIs will be allowed to obtain collateral security for a part of the credit facility, whereas the remaining part of the credit facility, up to a maximum of 200 lakh can be covered under the scheme. The Trust also reserves the right to reject any application for the guarantee cover, if it deems necessary.

How to apply under CGTMSE Scheme

First of all, you can’t apply for the loan under CGTMSE Scheme online. You have to contact to the banks nearby you. Candidates meeting the eligibility criteria may approach banks / financial institutions, and select Regional Rural Banks which are eligible under the scheme.

 Background of the scheme

Considering the success of the PMEGP scheme, and as requested by the entrepreneurs/unitholders and also as recommended by Management Development Institute (MDI), Gurgaon, in its Evaluation Study Report, the Government approved continuation of PMEGP beyond 12th five-year Plan for a period of 3 years from 2017-18 to 2019-20 with a financial outlay of Rs. 5,500 Crores. While giving such approval, a provision has also been made for sanctioning a 2nd loan with Subsidy for upgrading the existing units, which are performing well in terms of turnover profit making and loan repayment.

Objective of the scheme

1.To fulfill the need of additional financial assistance for upgrading and expansion to the successful / well-performing units.

2.To cater to the need of the entrepreneurs for bringing new technology/ automation so as to modernize the existing unit.

3.To enhance the productivity of the existing units with the inclusion of additional dose of funding.

4.To enhance the capacity of the existing unit with the additional financial assistance assuring additional wage employment.

Administration of scheme

Prime Minister’s Employment Generation Program (PMEGP) is a credit linked subsidy Program administered by the Ministry of Micro, Small and Medium Enterprises, Government of India.

Concerned bodies in charge of Scheme Implementation

The scheme will be implemented by KVIC, a Statutory Body created by Khadi and Village Industries Commission Act, 1956, which will be a single National-level Nodal Agency. At the State level, the scheme will be implemented through State Directors of KVIC, State KVIBs and District Industries Centers in rural areas. In urban areas, the scheme will be implemented by the State District Industries Centers (SDIC) only. KVIC will coordinate with State KVIBs, State DICs and monitor the performance of the Units in both in rural and urban areas.

Quantum and Nature of financial assistance

1.Maximum cost of the project/unit admissible under manufacturing sector for up-gradation is Rs.1.00 Crore, and the maximum subsidy would be Rs.15lakhs (Rs.20 lakhs for NER and Hill States).

2.The maximum cost of the project/unit admissible under Service/Business sector for up-gradation is Rs.25 lakhs, and the maximum subsidy would beers. 3.75 lakhs (Rs. 5 lakhs for NER and Hill States).

3.The balance amount of the total project cost will be provided by bank as term loan. The applicant can utilize the loan amount for investment on fixed assets i.e. for construction of building/purchase of required new machinery/ Installation of machinery etc.

4.Under the term loan component (construction of building/industrial shed, machinery & equipment etc.), the construction of own building may be included and ceiling of construction should not usually exceed 25% of the total sanctioned project cost.

5.The capital expenditure component including cost of construction should be up to 60% of the total project cost. The working capital cost would be 40%.However; the financing bank can decide the criteria at the time of sanction of loan based on the nature of the project.

Eligibility Criteria

Eligible borrowers under this scheme

1.All existing units financed under PMEGP/MUDRA Scheme whose margin money claim has been adjusted and the first loan availed should have been repaid in stipulated time are eligible to avail the benefits.

2.The unit should have been making profit for the last three years.

3.Beneficiary may apply to the same financing bank, which provided first loan, or to any other bank, which is willing to extend credit facility for second loan.

4.Registration of Udyog Aadhar Memorandum (UAM) is mandatory.

5.The 2nd loan should lead to additional employment generation.

Eligible lending institutions under this scheme

1.All Public Sector Banks.

2.All Regional Rural Banks.

3.Cooperative Banks approved by State Level Task Force Committee headed by Principal Secretary (Industries/MSME)/Commissioner (Industries).

4.Private Scheduled Commercial Banks approved by State Level Task Force Committee headed by Principal Secretary (Industries/MSME)/Commissioner (Industries).

5.Small Industries Development Bank of India (SIDBI).

How to apply for upgradation under PMEGP scheme

On PMEGP e-portal, a separate application link will be given for submitting application by the existing units for up-gradation. Click on below mentioned link for application

https://www.kviconline.gov.in/pmegpeportal/pmegpIILOAN/index.jsp

The State/District-level Agencies (KVIC/KVIB/DIC), after preliminary scrutiny, will forward the application to the Bank opted by the beneficiary in the application. Before recommending the application to the Banks, the State/District-level agencies will ensure that the application is complete in all respects and the applicant has fulfilled all the criteria mentioned in the guidelines. The agencies shall complete the scrutiny of the application within 15 days, and forward the application to the Banks, if the application is found to be order. In case, the application is not in order, they may return the application along with reasons, within 15 days.

The concerned bank will appraise and sanction the project proposal within 60 days. After release of loan, the Bank will claim Margin Money Subsidy(MMS) as per the procedure prevalent for PMEGP units. The MMS will be kept as Term Deposit Receipt (TDR) for 18 months. No interest will be paid on the TDR and no interest will be charged on the corresponding amount of the loan disbursed. The TDR amount will be adjusted in the loan account after installation of the machinery and on the basis of positive report of a joint physical verification of the implementing agency and the Bank.

Joint physical verification of the unit by the implementing agencies and the Banks shall be undertaken at least twice in a year and details of the joint physical verification will be uploaded on the Portal. Geo-tagging of all the units will be done by KVIC. Third party physical verification shall be conducted by KVIC through outsourcing an independent agency, on completion of two years of upgradation. CGTMSE Coverage: The beneficiary may opt for covering the project under CGTMSE Scheme by paying requisite CGTMSE fees.

List of documents required for applications: –

1.Previous ‘loan sanction letter’ issued by the Bank, Proof of ‘MM claims adjusted against previous loan’ and ‘Bank Certificate for full loan repayment’.

2.Project report for expansion/upgrading the unit.

3.Passport size photograph.

4.IT returns for the last 3 years.

5.Annual accounts certified by Chartered Accountant for the last 3 years.

Miscellaneous:

The main objective of the scheme is to assist the well-performing units for upgrading the units. The other points, which are already covered in the ongoing existing PMEGP scheme, related to eligibility of the beneficiary units, negative list, procedure for claiming the margin money by the banks and release of the margin money subsidy through existing e-portal and retaining the subsidy in TDRshall also be applicable for 2nd financial assistance.

Background of the scheme

The Micro, Small and Medium Enterprises (MSME) sector is a significant contributor towards building up of a strong and stable national economy. Hon’ble Prime Minister while launching outreach initiative for MSME sector on the November 2018 highlighted that access to credit, access to market, technology up gradation, ease of doing business and a sense of security for. Employees are five key aspects for facilitating the MSME sector. 12 announcements have been made to address each of these five categories. As part of access to credit, he announced a 2 % interest subvention for all GST registered MSMEs, on fresh or incremental loans. Ministry of MSME has decided that a new scheme viz. “Interest Subvention Scheme for Incremental credit to MSMEs 2018” will be implemented over 2018-19 and 2019-20 with an allocation of Rs.975 crore.

Objective of the scheme

The Scheme aims at encouraging both manufacturing and service enterprises to increase productivity and provides incentives to MSMEs for on boarding in GST platform which helps in formalization of economy, while reducing the cost of credit. The Scheme will be in operation for a period of two financial years FY2019 and FY2020.

Monitoring of the scheme

The scheme would be monitored by a Governing Board [GB], chaired by Additional Secretary &Development Commissioner, Ministry of MSME. The GB shall consist of representatives of the Department of financial services (Ministry of Finance), SIDBI and public sector banks and MSME associations as members. The GB will lay down the policy guidelines and give necessary directions for smooth functioning of the Scheme. Continuation of the Scheme beyond FY2020 would be considered after an independent third-party evaluation by an institute of repute and performance of Key Performance Indicators [KPls] as advised by Ministry of MSME.

SIDBI will operate the scheme according to guidelines laid down and directions given. SIDBI would prescribe the modalities for submission of subsidy claims by eligible institutions. Further detailed methodology for release and adjustment of subsidy shall be worked out by GOI in consultation with SIDBI. SIDBI would specify in all communications that ‘Interest subvention amount shall be released by SIDBI subject to availability of funds from GOI.

Quantum of benefits available under Interest Subvention scheme 2018

As part of access to credit, our Prime Minister announced a 2 % interest subvention for all GST registered MSMEs, on fresh or incremental loans. The interest relief will be calculated at two percentage points per annum, on the incremental, amount of working capital credit or incremental/new term loan disbursed by eligible institutions to eligible MSMEs from the date of disbursal / drawal or the date of notification of this scheme whichever is later computed on outstanding balance from time to time and received/recovered by the lending institution. The interest rates charged to MSMEs shall conform to Code of Ethics and Fair Practices Code as published by respective institutions (as per extant RBI guidelines) and linked to the respective rating of the MSME as per internal/external rating as per applicable interest rate guidelines of the institution. The loan accounts on the date of filing claim should not have been declared as NPA as per extant guidelines in force. No interest subvention shall be admissible for any period during which the account remains NPA.

Eligibility criteria

1) All the MSMEs who have the following shall be eligible as beneficiaries under the Scheme:-

a. Valid Udyog Aadhar Number (UAN)

b. Valid GSTN Number

2) Incremental term loan or fresh term loan or incremental working capital extended duringthe current FYviz. from 2nd November 2018and next FYwould be eligible for coverage.

3) The term loan or working capital extended by Scheduled Commercial Banks and RBIRegistered Systemically Important Non-Banking Finance Companies (NBFCs).

4) In order to ensure maximum coverage and outreach, all eligible working capital or term loan would be eligible for coverage to the extent of Rs. 100 lakh only during the period of the Scheme.

5) Wherever for a single MSME both the facilities are extended viz. incremental working capital and term loan by an eligible institution, interest subvention would be made available only for a maximum financial assistance of Rs. 100 lakh.

6) MSME exporters availing interest subvention for pre-shipment or post-shipment creditunder Department of Commerce will not be eligible for assistance under Interest Subvention Scheme for Incremental credit to MSMEs 2018.

7) MSMEs already availing interest subvention under any of the Schemes of the State /Central Govt. will not be eligible under the proposed Scheme.

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. 1. Assistance on investment in plant & machinery for new business units set up
2. 2. Assistance on infrastructural development
3. 3. Assistance on contribution to Provident Fund
4. 4. Quality Assurance Certifications expenses reimbursement
5. 5. Registration of Patents and IPRs expenses reimbursement
6. 6. Assistance on setting up of Power loom business
7. 7. Assistance on development of Industrial complex etc.
8. 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.