Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Financial Support to MSMEs in ZED Certification

Scheme for Assistance to Micro, Small and Medium Enterprises (MSME): Financial Support for ZED Certification

The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" initiated by the Industries and Mines Department of Gujarat is designed to establish the state as a premier business destination. This initiative focuses on fostering sustainable manufacturing practices, bolstering the growth of MSMEs, and enhancing their competitiveness in the export market.

Overview of the Scheme

The "Scheme for Assistance to Micro, Small and Medium Enterprises (MSME)" serves as a comprehensive framework launched by the Gujarat Industries and Mines Department. Its primary goal is to empower the vibrant MSME sector, which plays a crucial role in generating employment, contributing to GDP, and driving exports. This initiative is effective from August 7, 2020, and will continue until August 6, 2025. It provides robust support to entrepreneurs and fortifies MSMEs, enabling them to compete on a global scale.

A significant component of this scheme is the "Financial Support to MSMEs in ZED Certification." This segment encourages Micro, Small, and Medium Enterprises (MSMEs) to adopt Zero Defect and Zero Effect (ZED) manufacturing principles. The initiative aims to improve product quality, enhance energy efficiency, and reduce environmental impacts.

Key Benefits

• Financial Assistance: MSMEs can avail a subsidy covering 50% of certification costs, with a maximum limit of ₹50,000.
• Quality Improvement: The scheme motivates MSMEs to enhance product quality and integrate advanced manufacturing techniques.
• Energy Efficiency: It encourages the adoption of energy-efficient processes in manufacturing.

Eligibility Requirements

• The applicant must be a registered Micro, Small, or Medium enterprise.
• The business should belong to the manufacturing sector.
• The MSME must apply for ZED certification under this scheme.
• The enterprise should adhere to government regulations concerning environmental standards and product quality.

Exclusions

Details regarding exclusions are not specified in the scheme documentation.

Application Procedure

Online Application Process

Follow these steps to complete your application:

1. Registration Steps:
   • Visit the Investor Facilitation Portal (IFP). Click on "New Investor Registration" to access the registration form.
   • Complete the registration form and click "Submit."
   • Verify your email by clicking on the link sent to your registered email address.
   • Once verified, your registration will be successful.
2. Post-Registration Steps:
   • Return to the Investor Facilitation Portal (IFP) and click on "Login."
   • Input the email address and password used during registration.
   • Click the "Login" button to access your account.
   • Fill in all required details and upload mandatory documents about your business to finalize your application process.

Contact for Assistance

For additional help, please contact the designated helpdesk.

Understanding MSME Classification

The term "New Enterprise" refers to an MSME that has completed Udyog Aadhar / Udyam Registration as mandated by the Government of India and has started commercial production during the active period of the scheme.

An "Existing Enterprise" signifies an MSME that began commercial production prior to the scheme's announcement date.

"Expansion" is defined as an existing or new enterprise increasing its investment in gross fixed capital by at least 50%, with a minimum of 60% of this investment allocated to plant and machinery.

Investment Definitions

Term Loan Definition

A "Term Loan" refers to a loan provided by a financial institution or bank (excluding NBFCs) designated for acquiring GFCI for the enterprise. Only the amount actually disbursed will be considered for incentives under this scheme.

Pipeline Enterprises

Enterprises that have received their first term loan disbursement but could not commence commercial production by August 7, 2020, are regarded as pipeline enterprises. These enterprises must begin commercial production by March 31, 2021. Additionally, enterprises that received their first disbursement on or before August 7, 2020, may opt for this new scheme, allowing term loan disbursements made during the policy period to be eligible.

For further details, you can view the information on myScheme.gov.in.