Central Government Subsidy Schemes For Small Scale Industries

The Indian economy is a developing economy and small-scale businesses are a significant part of it. They are one of the significant sources of employment for Indians. It is critical to assist these small-scale businesses in developing. The public authority of India has made many schemes to assist organizations at various stages of development. If you are a businessman or an entrepreneur, you should be aware of these schemes and avail full benefits from them. This article covers some of the different subsidy scheme for small scale industries launched by the central government of India.

Subsidy Scheme For Small Scale Industries

The MSME(Ministry of Micro, Small and Medium enterprises) has some schemes. However, knowledge is power and it is important that all entrepreneurs and business owners are aware of these schemes. Here, are  some of the subsidy scheme for small scale industries launched by the central government:

1. Integrated Development of Leather Sector (IDLS) Scheme:

This plan gives monetary help at the rate of 30% of the expense of plant and hardware for SSI units and 20% of the expense of the plant and apparatus for Non-SSI units, dependent upon a roof of Rs. 20 lakh (@ 20% to all units over the help of Rs. 50 lakh). 

Eligibility:

• All existing units in calfskin footwear and adornments businesses including tanneries calfskin merchandise saddlery, cowhide footwear non-calfskin footwear, and footwear
• Those having cash benefits for a long time undertaking practical and bankable programs on innovation up-gradation 

2. Credit Linked Сapital Subsidy Scheme for Technology Upgradation (CLCSS)

The Scheme targets working with Technology Upgradation of Micro and Small Enterprises by giving 15% capital endowment [ceiling of 15 lakh] on institutional money benefited by them for acceptance of deeply grounded and further developed innovation in supported sub-areas/items. The allowable capital appropriation is determined concerning the price tag of the Plant and Apparatus. The most extreme constraint of qualified credit for computation of sponsorship is 100 lakh. As indicated by the reconsidered CLSS conspire, an additional 10% sponsorship is stretched out to business visionaries who have a place with the SC/ST classification and hail from the chosen regions of the North-East or other hilly territories.

Eligibility:

• Both new and existing endeavors 
• Micro and small ventures situated in semi-metropolitan and provincial regions with a legitimate UAM number are additionally qualified.
• Commonly, the endeavors incorporate – sole-ownership, private restricted organizations, small businesses, khadi, coir units, organizations, town enterprises, and so forth.
• Banks and monetary organizations can apply to DC-MSME for profiting support.

3. Government Subsidy for Small Business for Cold Chain

1. For capacity framework including Pack House and Pre-cooling unit, the aging chamber, transport foundation, grant in-aids @ 35% for General Areas and @ 50%  for North East States, Himalayan States, Islands, and ITDP Areas, of the complete expense of plant and hardware and specialized common works, will be given under this scheme.
2. For esteem expansion and handling foundation including frozen capacity/profound coolers related and essential to the handling, grants in-aids @ 50% for General Areas and @ 75% for North East States, Himalayan States, Islands, and ITDP Areas, will be given.
3. For light offices grant in-aids will be given @ 50% to General Areas and @75% for the North East States, The Himalayan States, Islands, and ITDP Areas.

Eligibility:

Individuals, Cooperative Societies, Groups of Entrepreneurs, SHGS (Self Help Groups), FPOS (Farmers Producer Organizations), Central/State PSUs, NGOs, etc are qualified to take benefits from this scheme.

4. Extension of Financial Assistance to Coir units in the Brown Fiber sector

The pace of monetary help under the plan is 25% of the expense of hardware and infrastructural offices subject to specific limits because of the sort of unit.

Qualification: 

Coir Units craving to profit from the help under the plan ought to be enlisted with the Coir Board under the Coir Industry (R&L) Rules 1958 and furthermore with the Enterprises Department of the State in which the Unit is found. Help under the plan will be stretched out just to units outside the helpful crease. The Units for extraction of coir fiber/turning of coir yarn ought to be situated in regions with satisfactory accessibility of coconut husk/coir fiber.

5. Scheme for extension of Financial Assistance for Generator Set\Diesel Engine

The amount of subsidy for 1 unit would be 25 percent of the generator set’s expense subject to a limit of 50000. It will be a 1 time monetary help and will be granted on the investments done by the unit.

Qualification:

• The unit ought to have a substantial enrollment with the Coir Board under the Coir Industry (R & L) Rules 1958
• The unit ought to have the last SSI enrollment with the Industries Department of the State concerned.
• The unit ought to deliver a No Objection Certificate from the State Electricity Board for the establishment of a generator set.
• The generator limit set ought to be dependent upon the necessity of the unit.
• A three-stage power supply ought to be accessible.
• The application for generator subsidy ought to be suggested by the General Manager, DIC. 
• The unit ought to get leeway to the proposition ahead of time from the Regional Officer of the Coir Board worried about the State.

6. Support for Entrepreneurial and managerial development of SMEs

The Scheme gives beginning phase funding to sustaining imaginative business thoughts which can be implemented in a year. It aims to subsidize support for the set up of ‘Business Incubators (BI)’. The expense might shift from Rs 4 to 8 lacs for each idea, dependent upon a general roof of Rs 62.5 lakh for every BI. Around 10 ideas will be brooded by the BI.

Eligibility:

• Any individual or MSME with inventive thoughts prepared for commercialization can apply to the host foundation in request to acquire store support.
• Any specialized foundation (as given in the Eol) that needs to turn into a host organization would be able to apply to the workplace of the Development Commissioner-MSME or their closest MSME-DI for financing support.

Conclusion

There are numerous other subsidy schemes launched by the government such as the Prime Minister’s employment generation program, the Scheme for Integrated Textile Parks, etc. You can check them out on the official website of MSME. If you are an entrepreneur, make sure to check out all the schemes available and avail of their benefits. Wishing you and your business health and prosperity!