Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Assistance for Technology Acquisition

Micro, Small and Medium Enterprise

An Enterprise which satisfies the conditions of Micro, Small and Medium Enterprises as per the definition under the MSME Development Act, 2006 and subsequently amended from time to time by Government of India and has obtained acknowledgement of “Udyog Aadhaar Memorandum / Udyam Registration.

New Enterprise

New Enterprise means MSME, which has filled Udyog Aadhar / Udyam Registration as prescribed by the Government of India and commences commercial production during the operative period of the scheme.

Existing Enterprise

An Existing Enterprise means MSME which has commenced commercial production before the date of announcement of the scheme.

Expansion

Expansion means where an existing/New Enterprise increases its investment in gross fixed capital by at least 50% (out of which at least 60% of investment is made in plant and machinery for which expansion is carried out) of its existing gross fixed capital investment on the date of initiating expansion and compared with the date of commencing production during the operative period of the scheme.

Gross Fixed Capital Investment (GFCI)

Gross Fixed Capital Investment means the investment made in building, plant and machinery, utilities, tools and equipment, and other assets (excluding Land) to manufacture the end product.

Forward integration, Backward Integration and Diversification

Forward Integration: An Investment made in GFCI for the product which is raw material of the enterprise will be termed as backward integration.

Backward Integration: An Investment made in GECI for the further value addition in the end product of the enterprise will be termed as forward integration.

Diversification: An investment made in GFCI for the product other than the end product of the enterprise will be termed as diversification.

Term Loan

Term loan means loan sanctioned by the financial institution / Bank (Except NBFC) for the acquisition of GFCI of the enterprise. However, only the amount actually disbursed against the sanctioned will be considered for the incentives under the scheme.

Pipeline Enterprises

The Enterprises which have obtained first disbursement of term loan as effective step and could not start commercial production on or before 07/08/2020, shall be considered eligible as pipeline enterprise for incentive under previous scheme. Such enterprise should commence commercial production on or before 31/03/2021.However the enterprise which has obtained first disbursement on or before 07/08/2020 may opt for new scheme. Term Loan disbursement made during the policy period will be eligible for the enterprise which has opted for this scheme.