Financial assistance scenario for Enterprises and Start-Ups India notes-CSEET
Financial assistance scenario for Enterprises and Start-Ups India:
ICSI CSEET: The Council of the ICSI has released a notice regarding CSEET on the day of the inauguration of ICSI Golden Jubilee Celebrations on 4th Oct 2017.
The Gazette Notification on the Company Secretaries (Amendment) Regulations, 2020 has been published on 3rd February 2020 in the Official Gazette of India and the same shall be applicable from the said date of publication.
Now ICSI Published a notice regarding CSEET Test which going to start from 2020 May.
We are now going to discuss the details of CSEET Paper-3 Economics and Business Environment notes – Financial assistance scenario for Enterprises and Start-Ups India
Financial assistance scenario for Enterprises and Start-Ups India notes:
- Financial Assistance Scenario for Small and Medium Enterprises in India
There are various schemes launched by Ministry of Micro, Small & Medium Enterprises, and Government of India for providing financial assistance to SME sector. However, in this section we would restrict our discussion to certain selected schemes.
(a) Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
|Related Scheme||Scheme of Fund for Regeneration of Traditional Industries (SFURTI).|
|Description||The objectives of the scheme is to organize the traditional industries and artisans into clusters to make them competitive and provide support for their long term sustainability, sustained employment, to enhance marketability of products of such clusters, to equip traditional artisans of the associated clusters with the improved skills, to make provision for common facilities and improved tools and equipments for artisans, to strengthen the cluster governance systems with the active participation of the stakeholders, and to build up innovated and traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnerships, so as to gradually replicate similar models of cluster-based regenerated traditional industries|
|Nature of assistance||The financial assistance provided for any specific project shall be subject to a maximum of Rs 8 (eight) crore to support Soft, Hard and Thematic interventions.|
|Who can apply?||Non-Government organizations (NGOs), institutions of the Central and StateGovernments and semi-Government institutions, field functionaries of State and Central Govt., Panchayati Raj institutions (PRIs), Private sector by forming cluster specific SPVs, Corporates and corporate Responsibillity (CSR) foundations with expertise to undertake cluster development|
(b) A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship (ASPIRE)- Objectives of the Scheme:
(i) Create new jobs and reduce unemployment
(ii) Promote entrepreneurship culture in India
(iii) Grassroots economic development at district level
(iv) Facilitate innovative business solution for un-met social needs
(v) Promote innovation to further strengthen the competitiveness of MSME sector.
Nature of Assistance – 80 Livelihood business incubators (2014-2016) to be set up by NSIC, KVIC or Coir Board or any other Institution/agency of GoI/State Govt. on its own or by any of the agency/Scheme for promotion of Innovation, Entrepreneurship and AgroIndustry organisation of the M/o MSME, one-time grant of 100% of cost of Plant & Machinery other than the land and infrastructure or an amount up to Rs.100 lakhs whichever is less to be provided
In case of incubation centres to be set up under PPP mode with NSIC, KVIC or Coir Board or any other Institution/agency of GoI/State Govt., one- time grant of 50% of cost of Plant & Machinery other than the land and infrastructure or Rs.50.00 lakhs, whichever is less to be provided
Assistance towards the training cost of incubates will be met out of the ATI scheme of the Ministry as far as possible for both centres.
(c) Entrepreneurship and Skill Development Programme (ESDP)
|Related Scheme||Entrepreneurship Skill Development Programme (ESDP)|
|Description||Entrepreneurship Development Programmes are being organized regularly to nurture the talent of youth by enlightening them on various aspects of industrial activity required for setting up MSEs. These EDPs are generally conducted in ITIs , Polytechnics and other technical institutions, where skill is available to motivate them towards self-employment.|
|Nature of assistance||20 % of the total targeted of ESDPs are conducted exclusively for weaker sections of the society i.e. (SC/ST/women and PH) with a stipend of Rs.500/- per month per candidate under the Promotional Package for (Micro, Small Enterprises) MSEs. No fee is charged from the candidates under these programmes.|
|Who can apply?||These programmes are conducted by MSME-DIs of Ministry|
(d) Schemes of National Small Industries Corporation (NSIC) – The schemes of National Small Industries Corporation are as under:
Single Point Registration – The Government is the single largest buyer of a variety of goods. With a view to increase the share of purchases from the small-scale sector, the Government Stores Purchase Programme was launched in 1955-56. NSIC registers Micro & small Enterprises (MSEs) under Single Point Registration scheme (SPRS) for participation in Government Purchases.
- Financial Assistance for Start-Ups:
There are numerous schemes launched by Government of India for financing start-ups. However, this section covers only three finance schemes i.e. (a) The Venture Capital Assistance Scheme; (b) Support for International Patent Protection in Electronics & Information Technology (SIP-EIT) and (c) Stand-Up India for Financing SC/ST and/or Women Entrepreneurs.
(a) The Venture Capital Assistance Scheme: This scheme is run by Ministry of Agriculture and Farmers welfare. Venture Capital Assistance is financial support in the form of an interest free loan provided by SFAC to qualifying projects to meet shortfall in the capital requirement for implementation of the project.
The benefits of the Venture Capital Assistance Scheme are as under:
(i) Help in assisting agripreneurs to make investments in setting up agribusiness projects through financial participation.
(ii) Provides financial support for preparation of bankable Detailed Project Reports (DPRs) through Project Development Facility (PDF).
Eligibility Criteria (Who can apply)-
Self Help Groups
Units in agriexport zones
Agriculture graduates Individually or in groups for setting up agribusiness projects.
(b) Support for International Patent Protection in Electronics & Information Technology (SIP-EIT): This scheme is managed by Ministry of Electronics & Information Technology.
SIP-EIT is a scheme to provide financial support to MSMEs and Technology Start-up units for international patent filing to encourage innovation and recognize the value and capabilities of global IP along with capturing growth opportunities in ICTE sector.
Eligibility Criteria :
- The Applicant should be registered under the MSME Development Act 2006 of Government of India as amended from time to time as a MSME unit as per the criteria for such registration(the applicant would be required to furnish the proof of such registration).
- The applicant should be a registered company under the Companies Act of Government of India and should fulfil the investment limits in plant and machinery or equipment as defined in the MSME Development Act 2006 of Government of India as amended from time to time(this criteria will be ascertained from the proof of such registration and last audited balance sheet of the applicant)
- The applicant should be a registered STP Unit and should fulfill the investment limits in plant and machinery or equipment as defined in the MSME Development Act 2006 of Government of India as amended from time to time(this criteria will be ascertained from the proof of such registration and last audited balance sheet of the applicant).
- The applicant should be a technology incubation enterprise or a startup located in an incubation centre/ park and registered as a company (a certification from the incubation centre/ park in this case is mandatory) and should fulfill the investment limits in plant and machinery or equipment as defined in the MSME Development Act 2006 of Government of India as amended from time to time(this criteria will be ascertained from the proof of such registration and last audited balance sheet of the applicant).
(c) Stand-Up India for Financing SC/ST and/or Women Entrepreneurs : This scheme is managed by Small Industries Development Bank of India (SIDBI). Stand Up India Scheme facilitate
bank loans between 10 lakh and 1 crore to atleast one scheduled caste (SC) or Scehduled Tribe, borrower and atleast one women per bank branch for setting up a greenfield enterprise. This enterprise may be in manufacturing, services or the trading sector. In case of non-individual enterprises at least 51% of the shareholding and controlling stake should be held by either an SC/ST or Woman entrepreneur.
- SC/ST and/or women entrepreneurs; above 18 years of age
- Loans under the scheme is available for only greenfield project. GreenField signifies, in this context, the first time venture of the benefeciary in the manufacturing or services or trading sector
- In case of non-individual enterprises,51% of the shareholding and controlling stakes should be held by either SC/ST and/or Women Entrepreneur
- Borrower should not be in default to any bank or financial institution