Collateral Free loans from banks:
The Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGS) was launched by the
Government of India 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, Government of India 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
Reservation policies to manufacturing / production sector:
Reservation of items for exclusive manufacture in SSI sector statutorily provided for in the Industries (Development and Regulation) Act, 1951, has been one of the important policy measures for promoting this sector.
The Reservation Policy has two objectives
Ensure increased production of consumer goods in the small scale sectorExpand employment opportunities through setting up of small scale industries
Very easy to get Licenses, approvals, and registrations:
It has made very easy for enterprises that are having MSME Certificate to obtain Licenses, approvals and registrations on any field for their business from the respective authorities as they can produce the
Certificate of MSME Registration while making an application.
The scheme of refund of octroi provided under the Package Scheme of Incentives, 1993 will be included in the new Scheme up to 31-3-2006 on the same pattern. Where account-based cess or other levy is charged instead of or in lieu of octroi, such change will also be eligible for a refund as in the case of octroi.
Special consideration on international trade fairs:
Under the International Cooperation Scheme, financial assistance is provided on a reimbursement basis to the State/Central Government organizations, industries/enterprises Associations and registered societies/trusts and organizations associated with MSME for deputation of MSME business delegation to
other countries for exploring new areas of MSMEs, participation by Indian MSMEs in international exhibitions, trade fairs, buyer-seller meet and for holding international conference and seminars which are in the interest of MSME sectors
How it Works
Waiver of Stamp Duty and Registration Fees:
At present, IT units in public IT Parks are exempted from stamp Duty and Registration fees upto 31st March 2006. Now all new industrial units having MSME Registration and expansions will be exempted from payment of Stamp Duty and Registration fees
Exemption under Direct Tax Laws:
Enterprises that have MSME Registration can enjoy Direct Tax Exemption in the initial year of business, as mention in the scheme by Government and depending on business activity.
Bar Code registration subsidy:
Enterprises that have MSME Registration can avail Bar Code Registration subsidy as mentioned in the scheme.
Subsidy on NSIC Performance and Credit ratings:
Enterprises that have MSME Registration can avail Subsidy on NSIC Performance and Credit ratings as mentioned in the scheme.
Eligible for IPS subsidy
Enterprises that have MSME Registration are eligible for Industrial Promotion Subsidy (IPS) as mentioned in the scheme.
Counter Guarantee from Government of India through CGSTI
Enterprises that have MSME Registration are eligible for Counter Guarantee from Government of India through CGSTI.
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