Editorials

by Rajen Kumar

No Escaping Social Media

Running a magazine concentrating on issues of small and medium enterprises and managing with limited resources is a like living life on the edge. In this rush of meeting deadlines,...

Special Reports

Apr 2012

EMRC, Brussels Associates with SME WORLD as its New Media Partner

EMRC has promoted business partnerships with the developing world and has organised dozens of business forums in key decision-making cities, such as Amsterdam, Rome,...

Government Schemes

Have a look at the Government Schemes for Entrepreneurs

Jan 2009

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The first month of the year is befittingly a time for retrospection. Its time to mull over the unfinished tasks and to plan further moves. A tumultuous year that it was, 2008 afforded little chance to the government to be complacent as far as the fate of the enterprises is concerned. The unprecedented developments in the economic world had the government haunted by the fear of the India story getting derailed. The economy is being intermittently fed with booster packages to keep growth intact. India couldn't have been more fortunate than to have a renowned economist in our Prime Minister in such difficult times. Though this year we will have many such columns talking about government initiatives to sustain 6% growth at least, yet we present you a quick round up of some of the major initiatives of the government over the years to sustain entrepreneurship in INDIA.

To tackle the “C” thing

No problem is more pressing for the entrepreneur than credit. To make the Credit Linked Capital Subsidy Scheme (CLCSS) more attractive, several amendments have been made with effect from 29 September 2005. The ceiling on loans has been raised from Rs.40 lakh to Rs.1 crore and the rate of subsidy has been raised from 12 per cent to 15 per cent. The admissible capital subsidy has now been based on the purchase price of plant and machinery, instead of the term loan disbursed to the beneficiary unit.

Most significantly, the practice of categorisation of MSMEs in different slabs on the basis of their present investment for determining the eligible subsidy has been dispensed with.

No Collateral? No Problem

For entrepreneurs unable to provide collateral for obtaining loans, the Credit Guarantee Fund promises some help. The loan limit for this purpose has been increased from Rs.25 lakh to Rs.50 lakh. Added to this the one time guarantee fee has been reduced from 2.5% to 1.5%. This awareness has increased the number of loan proposals from 40 000 (for loans upto Rs.1000 crore) at the end of March 2004 to more than 1.20 lakh proposals (for loans of Rs3500 crore) at the end of October 2008.

The Best of all Packages

The Policy Package for Stepping up credit to SMEs was announced in 2005 for doubling the credit flow to this sector within a period of five years. This has resulted in a significant increase in flow of credit to enterprises from Public Sector Banks, from Rs.58, 278 crore at the end of March 2004 to Rs.1, 48, 651 crore at the end of March 2008. Capacity building for SMEs and support to women entrepreneurs are the main features of this package.

Administering the skill pill:

The agencies under the ministry of MSME conducted programmes for skill development for nearly 1 lakh trainees during 2007-08 and the targets set for 2008-09 is 3 lakh persons. Such training programmes for skill development are also being organized for women and other weaker sections of the society free of cost. A monthly stipend of Rs.500 is provided during the training period.

In order to enhance the competitiveness of SMEs, the government has launched the National Manufacturing Competitiveness Programme. The programme will enable the enterprises to Develop Quality Management Systems and Quality Technology Tools, besides providing them assistance for Marketing and entrepreneurial development.

Enabling Development through Clusters

As part of the MSMEs cluster development initiative, the MSME clusters can avail of benefits such as exposure to skill development, credit, marketing, technological upgradation and better designs and products. At present there are 412 clusters availing government interventions. Among these 50 clusters have been earmarked for hard interventions, 152 clusters for soft interventions and 210 clusters for diagnostic studies.

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8 Comments >>

Ankit Khanna

21 Dec 2011 (02:54:26)

I am already started a institute in my city but i want to develop the institute and to expand it I require loan .My institute started a few months ago . So suggest me the most appropriate procedure to meet out my needs.

Anand A Nahar

27 Oct 2011 (02:08:52)

Require a loan to start Distribution or Set Up Own Unit in Bangalore Rural or Urban

amaresh

17 Jul 2011 (10:42:21)

i am completed my engineering in electronics and communication engineering i want to start small scale industry in my field i want now about govt training and loan availability i am looking for your guidance

prabhu

31 May 2011 (01:28:02)

we require 50 lakh loan to start new business in automobile component manufacturing and we are looking for sme loan

Ashish Tripathy

25 Mar 2011 (02:05:16)

I want to start my own Garment Factory. Can you please tell me how can I get a loan from the govt. to establish the unit.

sanwer lal gurjar

19 Mar 2011 (11:50:40)

Respected sir, I want to looking for financial help about establish a management consultancy firm with outsourcing in human research. expected loan amount will be 10 lacs.please give me response.

Jain T John

21 Feb 2011 (01:24:58)

I have a project proposal for biometric security systems. The product is innovative and has high potential market. The total project cost is 60 lakhs including 20 lakhs R&D. I plan to establish my company in one of the IT parks in Kerala. I however do not have any collateral. Is there any scheme where I can obtain funds for this? Kindly give me a response.

Ranu Ali

24 Jan 2011 (11:32:37)

I am looking for sme loan for my business of travel agency and training institute loan amount wilbe minimum 25 lakh, I lookforward yearly response

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