Important Schemes Regarding MSME Sectors

06th Oct 2021


UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)


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

What is CGTMSE?

  • CGTMSE is a fund which provides a guarantee for loans given to MSEs i.e. in case borrowers fails to give back loans, the bank will get their money from this fund.
  • It is a Central Government program to promote MSMEs.
  • Government has increased corpus of fund from Rs 2500 crore to Rs 7500 crore
  • Now loans given by NBFCs can also be covered under this fund

Udyami Mitra’ portal

  • Small Industries Development Bank of India (SIDBI) has revamped its Udyami Mitra with enhanced features.
  • The portal was launched to improve the accessibility of credit for the MSMEs.
  • It helps MSMEs for submission of loan applications which can be picked up by multiple lenders.
  • It aims at bringing in transparency in the processing of loans by the banks.
  • Now non-banking finance companies and small finance banks are being on-boarded on the platform for enhancing the flow of credit to MSMEs.
  • Under the new capitalisation plan, banks will have to compete for loans through the revamped udyamimitra portal.

A Scheme for Promotion of Innovation, Rural Industry and Entrepreneurship (ASPIRE)

  • ASPIRE has been launched on 16.03.2015 with an objective to set up a network of technology centres, incubation centres to accelerate entrepreneurship and also to promote start-ups for innovation and entrepreneurship in the rural and agriculture-based industry with a fund of Rs.210 crores.
  • The planned outcomes of ASPIRE are setting up Technology Business Incubators (TBI), Livelihood Business Incubators (LBI) and creation of a Fund of Funds for such initiatives with SIDBI.

Prime Ministers Employment Generation Programme, PMEGP

  • Khadi and Village Industries Commission (KVIC) is a nodal implementation agency at the national level.
    At State and district level, State offices of KVIC, Khadi and Village Industries Boards (KVIBs) and District Industry Centres (DIC) are the implementing agencies.


  • To generate continuous and sustainable employment opportunities in Rural and Urban areas of the country
  • To provide continuous and sustainable employment to a large segment of traditional and prospective artisans, rural and urban unemployed youth in the country through setting up of micro-enterprises.
  • To facilitate the participation of financial institutions for higher credit flow to the micro sector.


  • Individuals above 18 years of age
  • VIII Std. pass required for the project above Rs.10.00 lakhs in manufacturing and above Rs. 5.00 lakhs for Service Sector
  • Self Help Groups and Charitable Trusts
  • Institutions registered under Societies Registration Act- 1860
  • Production-based Co-operative Societies

Salient features of the scheme

  • The Scheme is implemented through KVIC and State/UT Khadi & V.I. Boards in Rural areas and through District Industries Centres in Urban and Rural areas in ratio of 30:30:40 between KVIC / KVIB / DIC respectively.
  • No income ceiling for setting up projects.
  • Assistance under the Scheme is available only to new units to be established.
  • Existing units or units already availed any Govt. Subsidy either under State/Central Govt. Schemes are not eligible.
  • Any industry including Coir Based projects excluding those mentioned in the negative list.
  • Per capita investment should not exceed Rs. 1.00 lakhs in plain areas and Rs. 1.50 lakhs in Hilly areas.
  • The maximum project cost of Rs. 25.00 lakhs in the manufacturing sector and Rs. 10.00 lakhs in Service Sector.
Credit Linked Capital Subsidy Scheme (CLCSS)-CLCSS aims at facilitating technology up-gradation of Micro and Small Enterprises (MSEs) by providing 15% capital subsidy (limited to maximum Rs.15 lakhs) for purchase of Plant & Machinery.   -Maximum limit of eligible loan for calculation of subsidy under the scheme is Rs.100 lakhs. Presently, more than 1500 well established/improved technologies under 51 sub-sectors have been approved under the Scheme.


It is a network for nurturing social entrepreneurship creating business models revolving around low-cost products and services to resolve social inequities.


  • Udyam Sakhi seeks to encourage women entrepreneurs and to aid, counsel, assist and protect their interests. It also preserves free competitive enterprise and to maintain and strengthen the overall economy of our nation.
  • The Udyam Sakhi helps Indian women to start, build and grow businesses. It recognises that women entrepreneur in the industry is critical to economic recovery and strength, in building the nation’s future, and to helping India compete in today’s global marketplace.
Samadhan PortalThe portal aims at empowering micro and small entrepreneurs across country to directly register their cases relating to delayed payments by Central Ministries, Departments, CPSEs, State Governments.The Samadhaan portal will give information about pending payment of MSEs with individual CPSEs/Central Ministries, State Governments, etc.   The CEO of PSEs and Secretary of Ministries concerned will also be able to monitor cases of delayed payment under their jurisdiction and issue necessary instructions to resolve the issues. The portal will facilitate monitoring of delayed payment in more effective manner. The information on portal will be available in public domain, thus exerting moral pressure on defaulting organisations. The MSEs will also be empowered to access portal and monitor their cases.

Zero Defect, Zero Effect

  • ZED Scheme aims to rate and handhold all MSMEs to deliver top quality products using clean technology.
  • It will have sector-specific parameters for each industry.
  • ZED Scheme is meant to raise quality levels in unregulated MSME sector which is an engine of growth for the Indian economy.
  • The scheme will be the cornerstone of the Central Government’s flagship Make in India programme, which is aimed at turning India into a global manufacturing hub, generating jobs, boosting growth and increase incomes.

National Schedule Caste and Schedule Tribes (SC/ST) Hub

  • Ministry of  Micro, Small and Medium Enterprises (MSME) is implementing a scheme of  National Schedule Caste and Schedule Tribes (SC/ST) Hub.
  • The Hub is set up to provide professional support to SC/ST entrepreneurs to fulfil the obligations under the Central Government Public Procurement Policy for Micro and Small Enterprises Order 2012, adopt applicable business practices and leverage the Stand-Up India initiatives.
  • The functions of Hub include collection, collation and dissemination of information regarding SC/ST enterprises and entrepreneurs, capacity building among existing and prospective SC/ST entrepreneurs through skill training and EDPs, vendor development etc.
  • Four special subsidy schemes/programmes have been approved under National SC/ST Hub namely
    • Single Point Registration Scheme
    • Special Marketing Assistance Scheme (SMAS)
    • Performance & Credit Rating Scheme and
    • Special Credit Linked Capital Subsidy Scheme.


  • As per the revised guidelines, the following schemes are being merged into SFURTI:
  1. The Scheme for Enhancing Productivity and Competitiveness of Khadi Industry and Artisans
  2. The Scheme for Product Development, Design Intervention and Packaging (PRODIP)
  3. The Scheme for Rural Industries Service Center (RISC) and
  4. Other small interventions like Ready Warp Units, Ready to Wear Mission, etc.

Objectives of Scheme

  • To organize the traditional industries and artisans into clusters to make them competitive and provide support for their long term sustainability and economy of scale;
  • To provide sustained employment for traditional industry artisans and rural entrepreneurs;
  • To enhance the marketability of products of such clusters by providing support for new products, design intervention and improved packaging and also the improvement of marketing infrastructure;
  • To equip traditional artisans of the associated clusters with the improved skills and capabilities through training and exposure visits;
  • To make provision for common facilities and improved tools and equipment for artisans to promote optimum utilization of infrastructure facilities;
  • To strengthen the cluster governance systems with the active participation of the stakeholders, so that they are able to gauge the emerging challenges and opportunities and respond to them in a coherent manner;
  • To build up innovated and traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnership s, so as to gradually replicate similar models of cluster-based regenerated traditional industries
  • To look for setting up of multi-product cluster with an integrated value chain and a strong market-driven approach for viability and long term sustainability of the cluster;
  • To ensure convergence from the design stage with each activity of the cluster formation and operations thereof.
  • To develop specific product lines out of the currently offered diversified basket of heterogeneous products based on the understanding of the target consumer segment. A brand unification exercise also needs to be done to maximize the value.

Trade-Related Entrepreneurship Development Assistance Scheme (TREAD) Women entrepreneurship programme

  • There is a provision of Govt of India Grant up to 30% of Loan/credit sanctioned subject to a maximum ceiling of 30 Lakhs to NGOs as appraised by Lending Institutes/Banks for undertaking capacity building activities such as Training, counselling, participation in exhibitions, the establishment of new SHGs etc and other components as approved by Bank/Steering Committee.
  • The non-farming activities taken up by women are Tailoring, Handicrafts, Embroidery, Toy making, Readymade garments, Candle making, Agarbatti making, paper cup and plate making, Masala powder making, Saree weaving, Coir mat making, Pickles making, Readymade garments, basketry and brooms making, Jute bag making etc.
  • The focus of the scheme is to promote self-employment and income generation activities for women mostly from SHG groups in the non-farm sector.

Samanvaya: Free 1-to-1 mentorship for UPSC IAS

Fill up this form to schedule a free on-call discussion with senior mentor from Civilsdaily. Once submitted we will call you within 24 hours.

Civilsdaily Samanvaya 1-On-1 Mentorship Form

Field will not be visible to web visitor

Notify of
Inline Feedbacks
View all comments


Join us across Social Media platforms.

💥Mentorship New Batch Launch
💥Mentorship New Batch Launch