The Ministry of Medium, Small and Micro Enterprises (MSME) recently launched the MSME Innovative Scheme. This scheme is an amalgamation of existing sub-schemes pertaining to incubation, design, and Intellectual Property Rights (IPR) exclusively for MSMEs. Alongside this, the ministry has also announced the MSME IDEA HACKATHON 2022.
Overview of the New Scheme
The government declared equity support up to Rs 1 crore for the commercialization of ideas, designs, and patents across the three sub-schemes. The scheme aims to assist MSMEs in gaining subsequent funding and scaling up their operation. A separate corpus managed by the Small Industries Development Bank of India (SIDBI), established on 2nd April 1990, will cater to these needs. SIDBI is the Principal Financial Institution dedicated to the Promotion, Financing, and Development of the MSME sector.
Objective and Components of the New Scheme
The MSME Innovative Scheme pursues to promote untapped creativity, foster innovation and adoption of recent technologies in MSMEs. It intends to validate their ideas at the proof-of-concept level.
Incubation: As part of this scheme, the government will launch an MSME Idea Hackathon, inviting ideas from MSMEs, innovators, and students. Financial aid of up to Rs. 15 lakh per idea and up to Rs. 1.00 crore for relevant plants and machinery will be granted.
Design: This component aspires to link the Indian manufacturing sector and Design expertise on a common platform. It will offer expert advice and cost-effective solutions for new product development, improvement and value addition in existing/new products.
IPR (Intellectual Property Rights): This scheme aims to enhance awareness and improve the IP culture among MSMEs and encourages intellectual endeavor in the Indian economy.
Financial Assistance for Intellectual Property Rights
The scheme takes measures for the protection of ideas, technology innovations, and knowledge-driven business strategies developed by MSMEs. Financial assistance is provided in the form of reimbursements such as up to Rs. 5 lakh for Foreign Patent, Rs. 1.00 lakh Domestic Patent, Rs. 2.00 lakh for GI (Geographical Indication) Registration, Rs. 15,000/- for Design Registration, and Rs.10,000/- for Trademark Registration.
Glimpse of Other Schemes Related to MSME
There are various schemes under the Ministry of Micro, Small & Medium Enterprises (M/o MSME) aimed at promoting growth and development of the MSME Sector, including Khadi, Village, and Coir Industries.
Prime Minister’s Employment Generation programme (PMEGP): It is a credit linked subsidy scheme that helps in setting up new micro-enterprises and generates employment opportunities in rural as well as urban areas.
Scheme of Fund for Regeneration of Traditional Industries (SFURTI): SFURTI provides financial assistance to artisans and traditional industries, organizing them into clusters to make them competitive.
A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE): ASPIRE promotes innovation and rural entrepreneurship through Livelihood Business Incubator (LBI), Technology Business Incubator (TBI) and Fund of Funds for start-up creation in the agro-based industry.
Schemes for Credit and Interest Relief
Interest Subvention Scheme for Incremental Credit to MSMEs: This scheme provides interest relief up to 2% to all legal MSMEs on their outstanding fresh/incremental term loan/working capital during the period of its validity.
Credit Guarantee Scheme for Micro and Small Enterprises: This scheme assures guarantee cover for collateral free credit extended to MSMEs.
Micro and Small Enterprises Cluster Development Programme (MSE-CDP): It aims to enhance productivity and competitiveness as well as capacity building of MSEs.
Supportive Online Portals for MSMEs
CHAMPIONS portal: This platform assists Indian MSMEs by resolving their grievances and providing encouragement, support, and hand-holding them.
MSME Samadhan: Enables MSMEs to directly register their cases regarding delayed payments by Central Ministries/Departments/CPSEs/State Governments.
Udyam Registrations Portal: This portal was created to aggregate data on the number of MSMEs in the country.
MSME SAMBANDH: It is a Public Procurement Portal used to monitor the implementation of the Public Procurement from MSEs by Central Public Sector Enterprises.
