How to Start a Small Scale Unit through MSME Scheme

Prime Minister’s Employment Generation Programme [PMEGP]

PMEGP is credit linked Scheme of Govt. of India by merging erstwhile REGP and PMRY 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

Level of Financial Assistance:

The maximum cost of the project/unit admissible for Margin Money subsidy under Manufacturing sector is Rs. 50 lakhs
The maximum cost of the project/unit admissible for Margin Money subsidy under Business/Service sector is Rs. 20 Iakhs.
The balance amount (excluding the own contribution)of the total project cost will be provided by Banks.
If the total project cost exceeds Rs. 50 lakhs or Rs. 20 Iakhs for Manufacturing and Service/Business sector respectively, the balance amount may be provided by Banks without any Government subsidy.
Urban area includes Municipality & Corporation; Rural area includes village/Panchayat.

Eligibility Conditions of Beneficiaries:

Any individual, above 18 years of age
There will be no income ceiling and no upper age limit for assistance for setting up projects under PMEGP.
For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.
Assistance under the scheme is available only for new projects sanctioned specifically under the PMEGP.
Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.

Margin Money Grant to Nano Units

Margin Money Grant to Nano Units is a loan linked scheme operated by the Directorate of Industries and Commerce. The scheme aims to provide financial assistance to Nano units in the State, engaged in manufacturing, job work and service activity having any type of value addition.

Features of the Scheme:

Units with project cost upto 10 Lakh will be covered in the scheme.
Margin Money Grant of 30% to 40% of the Total Project cost according to the category of the applicant.
Women, Youth (Age between 18 and 40), Differentially Abled Persons, Ex-Servicemen, and persons belonging to SC/ST category will be eligible for 10% additional Grant.
30% of the beneficiaries under the scheme shall be women entrepreneurs.
Maximum assistance under this scheme shall be Rs 4 Lakh per unit.

Eligibility:

All new Nano proprietary enterprises in manufacturing / food processing and job works and units engaged in service sector having any type of value addition, whose project cost including fixed capital and working capital up to 10 lakhs are eligible for the assistance under the scheme. Preference is given to special categories such as women, handicapped persons, ex servicemen and persons belonging to SC/ST.Youth entrepreneurs up to the age of 40 are also given priority under the scheme.30% of the beneficiaries under the scheme shall be women entrepreneurs.

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Entrepreneur Support Scheme(ESS)

Entrepreneur Support Scheme (ESS) is the most popular and attractive scheme operated by the Directorate of Industries and Commerce. The scheme aims to provide financial assistance to Micro, Small and Medium Enterprises engaged in manufacturing activities in the State, proportional to the capital investment made. Depending upon the category of the investor, sector and the District of investment, the unit can avail subsidy from 15% to 45% of the fixed capital investment. For this scheme, loan from a financial institution is not mandatory.

Features of the Scheme:

Provides Subsidy for the investment in Land, Building, Plant & machinery, Electrification, Essential Office Equipments, Pollution Control Devices and other fixed assets.
For General Category, assistance is 15% of the capital investment limited to Rs 30 lakh.
For Young (18 to 45 years), Women, SC/ST and Non Resident Keralite (NRK) entrepreneurs, the assistance is 25% limited to Rs 40 lakh.
Enterprises in priority sectors are eligible for an additional assistance of 10% limited to Rs 10 lakh.
MSMEs started in the districts of Idukki, Wayanad, Kasargode and Pathanamthitta are eligible for an additional support of 10% limited to Rs 10 lakh.
Enterprises setup after acquiring new technology from approved research institutions are eligible for an additional support of 10% limited to Rs 10 lakh.
The total eligible assistance for an enterprise is limited to Rs 40 lakh.