RISIKO Providing Pro-Bono i.e. Free Consulting Services to MSME amid COVID19

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COVID-19 has profoundly impacted all of us in India and it has specially impacted the Micro, Small and Medium Enterprises and Family Owned Businesses.

Micro, small and medium enterprises (MSME) exporters will be impacted more by the current lockdown on account of Covid-19 pandemic as the sector accounts for over 45 per cent in the country’s total outbound shipments, according to trade experts. Due to lockdown, magnitude of the impact on MSME exporters can be gauged from the statement of the World Trade Organisation (WTO) which has projected that global trade in goods is set to decline steeply between 13 per cent and 32 per cent in 2020 as countries across the world are battling with the Covid-19 pandemic. The MSME sector also contributes about 25 per cent to the country’s GDP (gross domestic product) from service activities and over 33 per cent to the manufacturing output of India. (Source – TOI)

Despite of facing all the hardship, adverse and crisis-situation, we consider MSME is going to be very crucial lifeline in maintaining and re-establishing the disrupted supplies as well as re-starting the wheel of economy.

“We, at RISIKO family deeply understand about this time of crisis as well as upcoming difficult market conditions, especially for our Small Scale Businesses, Family Businesses and MSME community. We pledge to stand firmly with our MSME Sector through our Pro-Bono Consulting Services Schemes. We can assist in providing in devising way-out from any crisis-situation by offering our professional , financial or strategic advisory and by counselling in critical decision-making activities post COVID-19 scenarios. We can further help to explore alternative product/ service solution or strategies for handling the situation effectively and efficiently keeping in mind the associated risk and cost factors.” -Said Vimlesh Chaurasia, founding Partner and CEO of RiSiKo Consulting LLP – India.

To address concerns of small scale businesses, family businesses, start-up, non-profit organisation, entrepreneur and MSME Sector during the COVID-19 pandemic, RISIKO has formed a pro-bono consulting division to specifically help Small Scale & MSME Businesses to survive , revive and navigate through the crisis.

This pro-bono consulting is voluntary act with no cost and with no hidden conditions or charges. We are fully committed to this objective and we are sure, we can make a real difference by helping family, business community, leaders , promoters and entrepreneur.

We value and cherish the contribution of Small Businesses or MSME Sector, and RISIKO would like to repay by offering our Pro-Bono Consulting Services (i.e. Free of Cost Consulting Services) to MSME Sector (Individual or firm or Company etc.).

So if you are small scale businesses, family businesses, start-up, non-profit, entrepreneur, MSME Sector and if you have any question or query related to any of the below mentioned areas, you can reach out to us over call or Whatsapp or email or skype : –

  1. -Income Tax Matters
  2. -TDS Matters
  3. -Advance Tax Matters
  4. -Income Tax Return Matters
  5. -GST Return Matters
  6. -GST Refund Matters 
  7. -Contract/Agreement Review and Opinion
  8. -Dispute Resolution or Negotiation or Settlement
  9. -Lender Borrower Matters
  10. -NPA or Loan Default Matters 
  11. -Accounting and Book-keeping
  12. -Financial Advisory
  13. -Strategic Advisory
  14. -Cash Flow Management
  15. -Cost Control and Cost Reduction
  16. -CSR Funding and PM Care Donation
  17. -Turnaround and Crisis Management Strategy (post lockdown -opening)
  18. -Advisory on new business or license registration
  19. -New Industry or Factory Set up
  20. -International Market Entry and Export
  21. -Import and Export Related matters
  22. -MEIS & SEIS Related matters
  23. -Advisory on Government Grant or Financing and Loan options
  24. -Advisory on Government Economy Stimulant Package for Covid19
  25. -Reducing the Covid19 impact on Business and Revival Techniques
  26. -Risk Management and Risk Mitigation Technique
  27. -Option for Closure or Insolvency or Bankruptcy or Exit Options
  28. -Discussion or Negotiation with Labour/ Union / Employees/ Staff
  29. -IT & Technology Automation Tips
  30. -Any other matters / services listed on our website (www.risikollp.com)

We will continue to provide our Pro-Bono i.e. Free Consulting Services till the end of the June 2020 (& can be extended further,if required) and if you wish to avail Pro-Bono Free Consulting options, please email us your query/ request on info@risikollp.com along with MSME or UAM or Udyog Aadhar ID / Certificate (optional) and your Contract Details.

One of the dedicated Team Member will be assigned to your query and said team member shall get in touch with you within shortest possible time.

Please feel free to reach out to us and give us the opportunity to help the MSME community. For any further questions about this blog , please contact at info@risikollp.com. We again thank you all the Industry and Players in MSME Sector & We Pledge to stand with you always.

Regards and wishing Safetyfrom RISIKO Consulting Family


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In a world of competition and rapidly evolving environment, Pharmaceutical , Nutraceuticals & Healthcare companies must find ways to enhance shareholder value, increase efficiency, improve internal controls, contain costs and manage risk.

The rapid changes in the industry demands for unique approach to risk management to successfully achieve “Corporate Governance as well as Corporate Performance.”

Based on our industry experienced professionals and a tailored risk assessment. Our Risk Advisory Services & Strategic Advisory often play a key role in risk management process of a company. We believe that it is important that we understand the objectives of our clients and then help them create value for the company. We do this by helping clients understand the key drivers of value chain and then providing Strategic & financial customised advisory services.

PHARMA & RiSiKoOur Understanding of key issues

Pharma Sector is regulated on account of its social & economic significance. The government plays a major role by way of licensing laws, patent laws,  price regulations & plant approvals. Opening up of the new emerging market, change in economy and the advent of foreign players has changed the dynamics of this segment. Some of the key issues and challenges faced by the sector as enumerated below: Surviving Competition faced by Domestic bulk drugs industry due to cheap imports.

Managing working capital to improve cash flow, particularly relevant in times of “liquidity concerns”.

Price wars between regional and local Pharma companies are driving down prices, exerting pressure on margins.

Lowering costs through a continuing review of the cost base and development of lean manufacturing techniques.

– Working within the global framework to gain advantage from lower cost production and generate sales from these powerful markets.

Developing a strategy that enables continued growth within a defined strategic plan and a clear understanding of exit options.

Continuing to develop Intellectual Property to maintain a competitive advantage based on our knowledge economy and to protect created IP.

Optimising the tax position through appropriate use of tax planning arrangements and incentives such as R&D tax credits.

Managing pensions and benefits to enhance the employment proposition at the most appropriate cost.

Developing the governance procedures that are right for the business, its risks and locations.

Developing the Internal Control & Anti Fraud Control to monitor the performance of Overseas Companies & Distribution Channels

Managing balance between “Corporate Governance & Corporate Performance” Integration of Culture , Ethics & Controls in Takeover or acquisition transactions

Our involvement in manufacturing & Pharma stems from a first class client base that enables us to keep a regular contact with the issues in the industry. We then build on this platform by meeting other manufacturing companies and discussing their issues and working with key players in the industry. Our sectoral experience accompanied by international risk advisory practices, enables us to work around solutions that add value to the clients.

We use this knowledge to support our core services and consider new and innovative ways we can help our clients achieve their objectives.We strongly believe that all that we do should be designed to add value to our clients.

PHARMA & RiSiKoOur Strategic Solution to Industry

RiSiKo Consulting LLP is a business consulting and advisory firm, specializing in risk management, turnaround strategies and scaling-up family managed businesses. The company caters to clients across industries and business environments within India, Dubai and USA.

Our team of professionals offer experience & deep industry expertise in areas of Strategic & Risk Advisory Services. We offers following Customized Advisory solutions to Pharmaceutical, Healthcare & Life Science industry: –

If you would like further information about this publication or our wide range of services please visit our website or contact RiSiKo office to speak to Pharma Industry Expert: Phone : +91-22-22816486 , Email : enquiry@risikollp.com  or info@risikollp.com

Initiatives for Registration of MSME

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Description: MSME Delayed Payment Portal – MSME Samadhaan (https://samadhaan.msme.gov.in) has been launched empowering micro and small entrepreneurs across the country to directly register their cases relating to delayed payments by Central Ministries/Departments/CPSEs/ State Governments. Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 contains provisions to deal with cases of delayed payment to Micro and Small Enterprises (MSEs). As per the provisions, the buyer is liable to pay compound interest with monthly rests to the supplier on the amount at three times of the bank rate notified by Reserve Bank in case he does not make payment to the supplier for the supplies of goods or services within 45 days of the day of acceptance of the goods/service or the deemed day of acceptance.

Who are eligible: Any Micro or Small Enterprise.

2) Udyog Aadhaar Memorandum (UAM)

A one-page simple registration form for online filing of UAM has been introduced which replaces the filing of Entrepreneur’s Memorandum Part I&II. The filing of UAM can be done on https://udyogaadhaar.gov.in.

The salient features of Udyog Aadhaar are: Registration is online and user-friendly ,UAM can be filed on self-declaration basis , No documentation required , No Fee for filing , File more than one Udyog Aadhaar with same Aadhaar Number.

For further details on eligibility and how to apply , please get in touch with us on email at Info@risikollp.comenquiry@risikollp.com or call India MSME Helpdesk Tel. +91-22-28816486 or fill up the enquiry page on our website so we can get in touch with you.

Procurement and Marketing Support to MSMEs

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Procurement and Marketing Support (PMS) Scheme

Description: PMS Scheme has been revamped to enhance the marketability of products and services in the MSME sector. The objective is to promote new market access initiatives, create awareness and educate the MSMEs about various marketing relevant topics and development of marketability.

Nature of Assistance: Assistance available for following scheme components (A) Participation of Individual MSEs in domestic trade fairs/exhibition across the country (B) Organizing/ Participation in trade fairs/exhibitions (Regional/ National/International) by the Ministry/ Office of DC (MSME)/Government organizations (C) Capacity building of MSMEs in modern packaging technique (D) Development of Marketing Haats (E) International/National Workshops/ Seminars (F) Vendor Development Programmes: State Level Vendor Development Programmes (SLVDP) and National Level Vender Development Programme (NLVDP) (G) Awareness Programmes.

Who can apply: Individual Manufacturing/ Service MSE.

How to apply: Eligible MSEs may submit their application online at https://my.msme.gov.in or system in place.

Procurement from Micro and Small Enterprises (MSEs)

Description: The Public Procurement Policy for Micro and Small Enterprises (MSEs) has mandated that every Central Ministry/ Department/PSU shall set an annual goal of minimum 20 per cent of the total annual purchases from the products or services produced or rendered by MSEs. However, the government recently revised the order making it compulsory for all CPSEs to procure 25% from MSEs instead of 20% of their total purchases. Out of the total annual procurement from Micro and Small Enterprises, 3 per cent from within the target shall be earmarked for procurement from Micro and Small Enterprises owned by women. A sub-target of 4% out of annual procurement is earmarked for procurement from MSEs owned by SC/ ST Entrepreneurs. MSME Sambandh portal has been launched to monitor the progress of procurement from MSEs including MSEs owned by SC/ST and women.

Who are eligible: Any Micro or Small Enterprise.

For further details on eligibility and how to apply , please get in touch with us on email at Info@risikollp.comenquiry@risikollp.com or call India MSME Helpdesk Tel. +91-22-28816486 or fill up the enquiry page on our website so we can get in touch with you.

Technology Upgradation and Competitiveness Scheme for MSMEs

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1) Digital MSME Scheme

1) Design Clinic Scheme

Description: The objective of Design Clinic Scheme is to enhance industry understanding and application to design and innovation, and to promote design as a value adding activity and integrate it into mainstream business and industrial process of MSMEs; bring the industrial design fraternity closer to the MSME Sector; increase the awareness of the value of design and establish design learning in the MSME, and increase the competitiveness of local products and services. Activities under the scheme include

(i) Design Awareness Seminars/Workshops

(ii) Professional Design Projects

(iii) Student Design Projects

(iv) Orientation programmes.

Nature of Assistance: There is a provision of financial assistance of Rs. 15 Lakh (GoI: Units:75:25) for individual or upto 3 Micro units and 25 Lakh (GoI: Units:75:25) for more than 3 Micro units. For Small & Medium units, it is Rs. 25 lakh (GoI: Units: 60:40) for individual or upto 3 Units and Rs. 40 Lakh (GoI: Units:60:40) for more than 3 Units.

Who can apply: All Udyog Aadhaar Memorandum (UAM) registered manufacturing Micro, Small and Medium Enterprises (MSMEs) profitable entity in last three years are eligible to take the benefit of scheme.

How to apply: The MSME can submit their application to NID, Ahmedabad, IISC Bengaluru who have been nominated as IA.

2) Lean Manufacturing Competitiveness Scheme (LMCS)

Description: The Lean Manufacturing Competitiveness Scheme (LMCS) is a business initiative to enhance Competitiveness of the manufacturing sector, imbibing a culture of continuous improvement inculcating good management system resulted through increase in overall productivity. The objective of the scheme is to enhance the manufacturing competitiveness in MSMEs through the application of various Lean Techniques by reducing waste, increase productivity, imbibing a culture of continuous improvements etc.

Nature of Assistance: Provision of financial assistance to MSMEs upto Rs 36 Lakhs (maximum) per mini cluster of 10 units for a period of 18 months or till completion (GoI: Units:80:20, Rs. 28.8 Lakhs: Rs. 7.2 Lakhs).

Who can apply: All registered Micro, Small and Medium Enterprises (MSMEs) having valid Udyog Aadhaar memorandum and engaged in manufacturing activities are eligible to avail the benefit of LMCS.

How to apply: Office of DC (MSME), Ministry of MSME is implementing this scheme through MSME- DIs/TCs/Central Govt./State Govt. and its Institutions.

3) Digital MSME Scheme

Description: The main objective of the scheme is to make MSMEs digitally empowered and motivate them to adopt ICT tools and applications in their production & business processes to improve their competitiveness in national & international markets. Activities under the scheme include (i) Development of e-platform (India Enterprise Portal), (ii) Development of Software/Apps for MSMEs and uploading on portal etc. (iii) Digital Empowerment through Enterprise Facilitation Centre (EFC), and (iv) Assistance for IT infrastructure to various Implementing Agencies (IA).

Nature of Assistance: (i) Development of India Enterprise Portal for disseminating information on various IT based services for MSMEs. (ii) IT Infrastructure for Enterprise Facilitation Centre and Implementing Agencies.

How to apply: The MSMEs can contact the National Monitoring & Implementing Unit (NMIU)/Implementing Agency (IA) for availing the benefit of the scheme.

2) Financial Support to MSMEs in ZED Certification Scheme

Description: The objectives of the scheme include inculcating Zero Defect & Zero Effect practices in manufacturing processes, ensure continuous improvement supporting the Make in India initiative. The scheme envisages promotion of Zero Defect and Zero Effect (ZED) manufacturing amongst MSMEs so as to Promote adaptation of Quality tools/systems and Energy Efficient manufacturing, Encourage MSMEs to constantly upgrade their quality standards in products and processes, to drive manufacturing with adoption of Zero Defect production processes and without impacting the environment.

Nature of Assistance: The subsidy provided by the Government of India for Micro, Small & Medium Enterprises will be 80%, 60% and 50% respectively.

Who can apply: All MSMEs registered under MSME Act, 2006 as amended from time to time and also to MSMEs which are included as per executive orders issued by AS & DC (MSME) in consistent with MSME Act from time to time.

How to apply: The ZED Certification Scheme is a 4-step process: Step 1 : Register free on the online portal of ZED (www.zed.org.in) using the following link: http://assessment.zed.org.in/Assessment/ Assessment_BeforeLogin.aspx, using the valid (Indian) mobile number and email address. Step 2: Online self-assessment on the ZED parameters followed by Desktop Assessment. Step 3: Site-assessment, if selected on the basis of Desktop Assessment. Step 4: Consultancy: after desktop assessment, MSMEs will have the option to avail the service of an authorized ZED consultant for gap-analysis and handholding.

3) Support for Entrepreneurial and Managerial Development of MSMEs through Incubators

Description: The objective of the scheme is to promote & support untapped creativity of individual and to promote adoption of latest technologies in manufacturing as well as knowledge based innovative MSMEs (ventures) that seek the validation of their ideas at the proof of concept level.

Nature of Assistance: Financial assistance up to 15 lakh for developing/ nurturing the ideas. Upto Rs. 1.00 crore for procurement and installation of plant and machines in Business Incubator. Upto Rs. 1.00 Crore as seed capital support to appropriate Incubates in the form of soft loan, interest free loan, equity participation, grant or combination of these etc. for setting up of Startups.

Who can apply: Technical colleges, Universities Colleges other professional Colleges/ Institutes, R&D institutes, NGO involved in relevant activities etc., EFCs of DC (MSME), MSME-DIs/TCs /DICs or any institute/organization of Central/State Govt. may apply to register as Host Institute. Students/ MSMEs can apply to the registered Host Institute for developing and nurturing the ideas.

How to apply: Students/Entrepreneurs/MSME will apply to National Monitoring & Implementing Units (NMIU) through Implementing Agency (IA) on MIS portal for availing the benefit of the schemes.

4) Building Awareness on Intellectual Property Rights (IPRs)

Description: Building Awareness on Intellectual Property Rights (IPRs) for the MSME is administered with the objective to enhance awareness of MSMEs about Intellectual Property Rights (IPRs) and to take measure for the protecting their ideas and business strategies. These objectives are fulfilled through various activities under the scheme like awareness programmes/Seminars, workshops, Reimbursement for registration of IP, International Co-operation & setting-up IP facilitation centre across the country.

Nature of Assistance: Reimbursement for Patent /GI Registration/Trademarks, for setting up of IP Facilitation Centers, interactive Seminars /Workshops/Exhibitions and Awareness Programmes.

Who can apply: MSME units having valid Udyog Aadhar Memorandum (UAM). These initiatives are being implemented through various eligible implementing agencies prescribed in the scheme guidelines.

How to apply: Online application can be filled at www.my.msme.gov.in

5) Tool Rooms & MSME Technology Centres

Description: The Technology Centres (TCs) facilitate an integrated development of MSMEs by providing quality Tool, Industry ready manpower, consultancy in tooling & related areas and processes & Products development in product group like Foundry & Forging, Electronics, Electrical Measuring Instruments, Fragrance & Flavour, Glass, Sport Goods and Footwear designing. These TCs are provding these services across the country.

Nature of Assistance: i) To provide access of MSMEs to tooling facilities for enhancement of their efficiency. ii) Process & Product development in relevant sector. iii) Consultancy and Job works in relevant Sector and iv) Skill Development.

Who can apply : (i) Units desirous of availing tooling and dies facilities and consultancy services. (ii) The eligibility for training programmes includes from school dropout to M.Tech level.

How to apply: Online application for training can be filled at respective Technology Centres’ website or in person at Technology Centre. For tooling and consultancy services, the relevant Technology Centres may be visited.

For further details on eligibility and how to apply , please get in touch with us on email at Info@risikollp.comenquiry@risikollp.com or call India MSME Helpdesk Tel. +91-22-28816486 or fill up the enquiry page on our website so we can get in touch with you.

Important Skill Development and Infrastructure Support Schemes for Micro, Small and Medium Enterprises (MSMEs)

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Skill Development and Training to MSMEs       

1) Entrepreneurship and Skill Development Programme (ESDP)

Description: The objective of the programme is to motivate young persons representing different sections of the society including SC/ST/ Women, Physically Handicapped, Ex-servicemen and below poverty line (BPL) persons to consider self-employment or entrepreneurship as one of the career options.

The ultimate objective is to promote new enterprises, capacity building of existing MSMEs and inculcating entrepreneurial culture in the country.

Nature of Assistance: Assistance provided for Industrial Motivational Campaign (IMC), Entrepreneurship Awareness Programmes and Entrepreneurship-cum-skill Development Programmes, Management Development Programmes and Mega Events.

Intended Beneficiary: Youths representing different sections of the society including SC/ST/Women, Physically Handicapped, Ex-servicemen and Below Poverty Line(BPL) persons and Existing MSMEs.

How to apply: ESDP Programmes are implemented through MSME-DIs/TCs.

Infrastructure support to MSMEs

1) Scheme of Fund for Regeneration of Traditional Industries (SFURTI)

Description: The main objectives of the scheme is to organize the traditional industries and artisans into clusters in order to make them competitive and provide support for their long- term sustainability.

Nature of Assistance: The scheme would cover three types of interventions: ‘Soft Interventions’, ‘Hard Interventions’ and ‘Thematic Interventions’. The

Project outlay for various clusters: Regular Clusters (upto 500 artisans) – Rs. 2.50 Crore per Cluster; Major Cluster (more than 500 artisans) – Rs. 5.00 Crore per Cluster; Soft Interventions: 10% of hard interventions with maximum ceiling of Rs. 25.00 lakhs (100% scheme funding); Hard Interventions: As per project requirement. The financial assistance provided for any specific project shall be subject to a maximum of Rs. 5 crore.

Who can apply: Non-Government Organizations (NGOs), Institutions of the Central and State Governments and Semi-Government institutions, field functionaries of State and Central Govt., Panchayati Raj institutions (PRIs), etc. with suitable expertise to undertake cluster development. (ii) Private Sector participation is also encouraged for the implementation of cluster projects. Corporate entities can also take up projects directly by forming cluster-specific SPVs.(iii) Corporate and Corporate Social Responsibility (CSR) foundations with expertise in cluster development are encouraged to participate as Implementing Agencies. In case where a private sector entity is the IA, it shall contribute at least 50% of the total project cost excluding the cost of land.

How to apply: The eligible agency/ organization has to submit the proposal to any of the other designated Nodal Agencies under the scheme (as mentioned in the guidelines and as appointed from time to time) for onward submission to Scheme Steering Committee for approval.

2) Micro & Small Enterprises Cluster Development Programme (MSE-CDP)

Description: The scheme supports financial assistance for establishment of Common Facility Centres (CFCs) for Testing, Training Centres, R&D, Effluent Treatment, Raw Material Depot, Complementing Production Processes etc. and to create/upgrade infrastructural facilities in the new/existing industrial areas/clusters of MSEs such as Flatted Factory Complex, power distribution network, water, telecommunication, drainage and pollution control facilities, roads, banks, raw materials, storage and marketing outlets, common service facilities and technological back­up services for MSEs in the new/existing industrial estates/areas. Marketing Hubs/Exhibition Centres by Associations, Thematic Interventions and Support to State Innovative Cluster Development Programme are also parts of the scheme.

Nature of Assistance: Common Facility Centres (CFC): The GoI grant will be restricted to 70% of the cost of Project of maximum Rs. 20.00 Crore. GoI grant will be 90% for CFCs in North-East & Hilly States, Island territories, Aspirational Districts/ LWE affected Districts, Clusters with more than 50% (a) Micro/Village, (b) Women owned, (c) SC/ ST units. The cost of Project includes cost of Land (Subject to maximum of 25% of Project Cost). (ii) Infrastructure Development: GoI grant will be restricted to 60% of the cost of project (Rs. 10.00 Crore for Industrial Estate & Rs. 15.00 Crore for Flatted Factory Complex). GoI grant will be 80% for Projects in North-East & Hilly States, Island territories, Aspirational Districts/ LWE affected Districts industrial areas/estates/Flatted Factory Complex with more than 50% a: micro/village or b: women owned or c: SC/ST units. (iii) Marketing Hubs/Exhibition Centres by Associations: The GoI grant will be restricted to 60% of the cost of project of maximum Rs. 10.00 crore for Product Specific Associations with BMI rating of Gold Category and above from MABET (QCI) and 80% for Associations of Women Entrepreneurs. Remaining project cost is to be borne by SPV/State Government. (iv) Thematic Interventions: The GoI grant will be restricted to 50% of total cost of maximum 5 activities not exceeding Rs. 2.00 lakh for each activity. GoI grant under this component for each CFC would be Rs. 10.00 lakh. (v) Support to State Innovation Cluster Development Programme: The GoI fund would be limited to State Government or Rs. 5.00 Crore whichever is lower and the assistance would be 90% of project cost in respect of CFC projects in North-East/Hilly States, Island territories, Aspirational Districts/ LWE affected Districts, as well as for projects where beneficiaries are SC/ ST/ Women owned enterprises.

Who can apply: Clusters, Industrial Associations/ Consortia.

How to apply: Online applications can be filled at https://cluster.dcmsme.gov.in. Hard copy of applications need to be sent through State Governments or their Autonomous Bodies or field institutes of the Ministry of MSME i.e., MSME- DIs. The proposals are to be approved by the Steering Committee of MSE-CDP. Website:  http://www.dcmsme.gov.in/MSE-CDProg.htm

For further details on eligibility and how to apply , please get in touch with us on email at Info@risikollp.comenquiry@risikollp.com or call India MSME Helpdesk Tel. +91-22-28816486 or fill up the enquiry page on our website so we can get in touch with you.

Important Credit and Financial Assistance Schemes for Micro, Small and Medium Enterprises (MSMEs)

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Credit and Financial Assistance to MSMEs

1) Prime Minister’s Employment Generation Programme (PMEGP)

Description: The scheme aims to generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures /projects/micro enterprises. Another objective is to provide continuous and sustainable employment to all segments of traditional and prospective artisans and rural/urban unemployed youths in the country, so as to help and to arrest migration of rural youths to urban areas. Third objective is to increase the wage­earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment.

The scheme is implemented by Khadi and Village Industries Commission (KVIC), as the nodal agency at the National level. At the State level, the scheme is implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and Banks.

Only new projects are considered for sanction under PMEGP.

Nature of Assistance: The maximum cost of the project/unit is: Rs. 25 Lakhs in case of manufacturing sector and Rs. 10 Lakhs in case of business/service sector.

Subsidy under PMEGP (% of project cost): General category 15%(Urban), 25%(Rural); Special Category (including SC / ST / OBC / Minorities / Women, Ex­servicemen, Physically handicapped, NER, Hilly and Border areas, etc.): 25% (Urban), 35% (Rural).

Who can apply: Any individual, above 18 years of age can apply (For project costing above 10 lakh in manufacturing and 5 lakh in service sector. He should have passed at least VIII standard). Self Help Groups, Institutions registered under Societies Registration Act 1860; Production Co-operative Societies and Charitable Trusts are also eligible.

How to apply: Only online application is accepted. The beneficiaries can submit their application online at https://www.kviconline.gov.in/pmegpeportal/pmegphome/index.jsp.

New initiative: Second dose of assistance up to Rs. 1.00 crore to existing and better performing PMEGP/ MUDRA units for up grading with subsidy of 15% (20% in hilly/NER).

2) Credit Linked Capital Subsidy Scheme for Technology Upgradation (CLCSS)

Description: The objective of CLCSS is to facilitate technology to MSEs through institutional finance for induction of well established and proven technologies in the specific sub-sector/products approved under the scheme.

Nature of Assistance: Upfront subsidy of 15% on institutional Credit upto Rs. 1.0 Crore (i.e. subsidy cap of Rs. 15.00 lakh) for identified sectors/ subsectors/ technologies.

Who can apply: Any Micro and Small Enterprises (MSEs) unit.

How to apply: Candidates meeting the eligibility criteria may approach 11 nodal Banks / Agencies.


Andhra Bank, Corporation Bank, Canara Bank and Indian Bank.

3) Credit Guarantee Fund Trust for Micro I and Small Enterprises (CGTMSE)

Description: Ministry of Micro, Small and Medium Enterprises and Small Industries Development Bank of India (SIDBI) jointly established a Trust named Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) in order to implement Credit Guarantee Scheme for Micro and Small Enterprises (MSEs). The corpus of CGTMSE is contributed by Government of India and SIDBI.

Nature of Assistance: Collateral free loan upto a limit of Rs. 200 lakh.

Who can apply: New as well as existing Micro & Small Enterprises.

How to apply: MSE meeting the eligibility criteria may approach eligible Banks / Financial Institutions/ Regional Rural Banks/NBFCs.

4) 2% Interest Subvention Scheme

Description: The scheme aims at encouraging both manufacturing and service enterprises to increase productivity and provides incentives to MSMEs for on boarding on GST platform which helps in formalization of economy, while reducing the cost of credit. The scheme is in operation for a period of two financial years (FY 2018-19 and FY 2019-20).

Nature of Assistance: The interest relief will be calculated at two percentage points per annum (2% p.a.), on outstanding balance from time to time from the date of disbursal / drawal or the date of notification of this scheme, whichever is later, on the incremental or fresh amount of working capital sanctioned or incremental or new term loan disbursed by eligible institutions.

Who can apply: All MSMEs who have valid Udyog Aadhaar Memorandum [UAM] and valid GSTN Number shall be eligible as beneficiaries under the scheme.

How to apply: MSMEs may apply to eligible lending institutions under the scheme.

For further details on eligibility and how to apply , please get in touch with us on email at Info@risikollp.com, enquiry@risikollp.com or call India MSME Helpdesk Tel. +91-22-28816486 or fill up the enquiry page on our website so we can get in touch with you.