सूक्ष्म , लघु और मध्यम उद्यम मंत्रालय

Ministry of Micro, small & Medium Enterprises

Public Procurement Policy

1. What is the Public Procurement Policy?
The Government of India has notified Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 under MSMED Act. Under this policy, 25% of annual procurement by Central Ministries/Departments/Public Sector Enterprises (CPSEs) has to be made from Micro & Small enterprises. A sub-target of 4% out of 25% target of annual procurement is earmarked for procurement from MSEs owned by SC/ST entrepreneurs. Additionally, 3% from within the 25% target shall be earmarked for procurement from Micro and Small Enterprises owned by women <amendment>. For more details about the Public Procurement Policy, please visit: https://msme.gov.in/public-procurement-policy

2. Whether there is any reservation for MSEs owned by SC/ST entrepreneurs in Public Procurement?
A sub-target of 4% out of 25% target of annual procurement is earmarked for procurement from MSEs owned by SC/ST entrepreneurs.

3. Who are eligible for availing benefits under the Public Procurement Policy?
All MSEs having registration as per provisions of the Policy i.e. registration with District Industries Centre (DIC) or Khadi and Village Industries Commission (KVIC) or Khadi and Industries Board (KVIB) or Coir Board or National Small Industries Commission (NSIC) or directorate of Handicrafts and Handlooms or Udyam registration or any other body specified by Ministry of MSME.

National SC-ST Hub Scheme

4. What is National SC-ST Hub Scheme (NSSH)?
National Scheduled Caste Scheduled Tribe Hub (NSSH), a central sector scheme is an initiative of the Ministry of MSME, Government of India to promote entrepreneurship among SC/ST communities and support fulfilling the obligations of 4% of procurement from SC/ST entrepreneurs under the Central Government Public Procurement Policy Order 2012.

5. What are main functions of the scheme?
   The main functions of the scheme are as below:

1. To encourage SC/ST owned units to be part of 4% of total procurement being made by Central/State Governments, CPSEs and other government agencies
2. To prepare strategy for intervention through industry associations to sensitize, encourage and enable the SC/ST owned units for participation in Public Procurement Process
3. Facilitating SC/ST Entrepreneurs to be part of vendor development programs and mentoring support by specific CPSE matching the products/services of such entrepreneurs
4. Capacity building of existing and prospective SC/ST entrepreneurs through skill development programs
5. Providing handholding and mentoring support
6. Sharing of SC/ST MSEs data with CPSEs to enhance the procurement from SC/ST
7. Undertaking outreach activities for the promotion of the scheme among SC/ST population

6. Which is the Nodal Agency for implementation of National SC-ST Hub?
The scheme is being implemented by National Small Industries Corporation (NSIC), a Government of India enterprise under the administrative control of the Ministry of Micro, Small and Medium Enterprises (MSME).

7. What is the Definition of SC-ST MSEs?
Office of the DC-MSME, Ministry of MSME vide its memorandum no. F. No. 22(1)/2012-MA dated 20th February 2014 clarifies the definition of SC-ST Enterprises as under:

• In case of proprietary MSE, the proprietor(s) shall be SC/ST
• In case of partnership MSE, the SC/ST partners shall be holding at least 51% shares in the unit
• In case of private limited companies, at least 51% shares shall be held by SC/ST promoters

8. What are the sub-schemes/components/interventions under National SC- ST Hub?
Under NSSH, various components/interventions have been introduced to cater the needs of SC ST MSEs in the areas of finance, technology, market linkages, capacity building etc. with a view to provide a conducive ecosystem. These components are:

• Special Credit Linked Capital Subsidy Scheme (SCLCSS): To facilitate purchase of plant & machinery 25 percent capital subsidy can be provided to the existing as well as new SC/ST owned MSEs on institutional finance availed of by them.
• Special Marketing Assistance Scheme: To provide marketing support to the SC/ST enterprises for the enhancement of competitiveness and marketability of their products.
• Single Point Registration Scheme (SPRS): There is 100% subsidy for registration under Single Point Registration Scheme of NSIC and the applicant unit must pay token amount of Rs.100 plus GST
• Reimbursement of Bank Loan Processing Fee: 80% or Rs. 1,00,000/-, whichever is less, on Bank loan processing charges paid by SC-ST MSEs
• Reimbursement of Bank charges on Performance Bank Guarantee: 80% or Rs. 1,00,000/, whichever is less, on Performance Bank guarantee charges paid by SC-ST MSEs
• Reimbursement of Testing Fee: 80% or Rs 1,00,000/- on testing charges, whichever is less for availing testing services from Government laboratories or NABL /BIS accredited laboratories & license or certification fee from BIS, in a financial year
• Reimbursement of annual membership fee of Export Promotion Council: 80% of the annual Membership fee of various Export Promotion Councils with ceiling of Rs.20,000/
• Reimbursement of annual membership / subscription fee of Government promoted e-commerce portals:  80% or maximum of Rs. 25,000/- whichever is less, on annual membership fee of Government promoted e-commerce portals such as GeM, e-khadi, TRIFED, Tribes India, MSME Mart, etc. to SC-ST MSEs
• Top 50 NIRF Ranked Management Institution's Short-Term Training Program Fee Reimbursement Scheme: Reimbursement of 90% up to Rs 1,00,000/- for attending up to 2 short term training courses from top 50 NIRF ranked Management Institutes.

For more details please visit: www.scsthub.in

 

I. Special Credit Linked Capital Subsidy Scheme (SCLCSS)

1. What is SCLCSS?
To facilitate capacity augmentation of existing SC/ST MSEs and for creation on new enterprises among SC/ST communities, 25 percent capital subsidy is provided for purchase of plant & machinery / equipment through institutional finance (bank loan).

2. What are the provisions available under SCLCSS?
Under SCLCSS, 25% subsidy to SC/ST MSEs on institutional finance for procurement of Plant & Machinery / equipment (i.e., a subsidy cap of Rs.25 Lakhs) without any sector specific restrictions is provided.

3. which products/ sub-sectors have been approved under the SCLCSS component?
There is no such restriction. The scheme covers SC/ST MSEs of both manufacturing and service sectors. However, the industries covered under the RED category as per the Classification of industries for consent management (Schedule- VIII, rules 3(2) and 12 of Ministry of Environment & Forests, Govt. of India) shall not be eligible for subsidy under the above scheme.

4. Which are the Nodal Agencies for implementation of SCLCSS?
There are 10 nodal banks from where applications can be filed for availing subsidies. Details for Nodal Banks/Agencies are available on the official website provided below  

The list of 10 banks designated as nodal agencies are as below.

• State Bank of India
• Canara Bank
• Union Bank of India
• Bank of India
• Punjab National Bank
• Bank of Baroda
• SIDBI
• NABARD
• Indian Bank
• Tamil Nadu Industrial Investment Corporation Ltd.

5. Whether the Scheme is applicable for new MSEs?
Yes

6. Is SCLCSS applicable for medium and large-scale Enterprises?
No, only Micro and Small-Scale Enterprises (existing & new) are eligible under SCLCSS.

7. Whether the subsidy can be availed for replacement of machinery and equipment?
The subsidy shall be admissible for investment in acquisition/replacement of plant & machinery/equipments & technology up-gradation of any kind through institutional finance. But fabricated /second-hand machinery /equipment will not be eligible for subsidy under the component of the scheme.

8. Who are the eligible beneficiaries?

• Sole Proprietorships, Partnerships, Co-operative societies, Private and Public limited companies owned by SC/ST Entrepreneurs of MSE sector engaged in the manufacturing activities are eligible for seeking assistance under this scheme.  The existing enterprises should have obtained registration under Udyog Aadhaar Memorandum/ Udyam Registration as well as have enrolled in the MSME Data Bank.
• SC/ST Units graduated from small scale to medium scale are eligible for subsidy under SCLCSS for three years from the date of graduation.
• SC/ST owned MSEs who have already availed subsidy under the existing CLCSS/SCLCSS, before the date of notification of this scheme, may claim additional subsidy on account of difference in the rate of subsidy for procurement of plant and machinery after issuance of notification in this regard, which is now permissible under this scheme. The overall limit on the subsidy shall be Rs. 25 lakhs. Further, an Undertaking shall be obtained from the applicant SC-ST MSEs, duly signed by its Proprietor / Partner / Director regarding availment of subsidy under CLCSS/SCLCSS earlier.

9. Whether this subsidy can be claimed in combination with any other scheme?
The units availing subsidy under the SCLCSS shall be eligible for all other types of subsidies except any other Central Govt. Subsidy for technology upgradation.

10. How to apply for subsidy under the Scheme?
SC-ST MSEs of manufacturing/service sector can submit the application within stipulated timeline in prescribed format to the Prime Lending Institutions - PLIs (Bank from which loan has been taken for procurement of Plant and Machinery). The format is available on the given link below.

https://www.scsthub.in/sites/default/files/Application_Form_SCLCSS.pdf

The PLIs will upload the claim on the online portal of the Ministry of MSME and forward it to the concerned nodal Banks/Agencies. The eligible subsidy claims would be approved by the Ministry of MSME post recommendation of the nodal banks/agencies. 

11. What is the tenure of term loan eligible for this subsidy?
To avail the subsidy benefit under the scheme, the sanctioned term loan should not be for less than three years including moratorium period for MSEs.

12. What is the mechanism for disbursement of subsidy to the unit?
Banks will follow the principle of First -In -First -Out (FIFO) while submitting the claims online under SCLCSS Scheme. The principle of First -In -First -Out (FIFO) will also be followed by the NSSH Cell for disbursement of subsidy to the eligible beneficiary unit

II. Special Marketing Assistance Scheme

1. What is Special Marketing Assistance Scheme?
Special Marketing Assistance Scheme (SMAS) is a sub scheme under NSSH to provide marketing support to the SC/ST enterprises for the enhancement of competitiveness and marketability of their products.

2. What are the benefits provided under SMAS?
 Below is the key support extended under SMAS component.

• Financial support for participation and organizing visit to international exhibitions/Trade Fairs abroad
• Financial support for participation and organizing visit to in domestic exhibitions/Trade Fairs
• Vendor Development Programmes.
• Organizing Workshops/Seminars/Awareness Campaigns

3. What are the eligibility criteria for availing benefits under SMAS?
SC/ST units must be registered in the UAM/ Udyam Registration Portal and MSME Data Bank at the time of availing the benefit under the scheme.

4. How many times an MSE units is eligible for participation in Domestic and Foreign exhibition?

• Domestic: SC/ST Enterprises can avail benefits to participate in maximum of 4 domestic events in a given financial Year.
• International: SC/ST Enterprises can avail benefits to participate in 2 International events in a given financial year. Also, a person cannot represent more than one MSE in a financial year

5. What is maximum budgetary limit for participation in an international exhibition?
The budgetary limit for participation in an international exhibition is as below:

Micro SC/ST Enterprises	Rs. 3.00 Lacs
Small SC/ST Enterprises	Rs.  2.50 Lacs
Medium SC/ST Enterprises	Rs. 1.50 lacs

7. How to apply for domestic and international events under SMAS?
Applications for participation in international/ domestic events, in the prescribed format, should be submitted to nearest NSSHOs/NSIC branch offices, at least a month in advance for domestic events and two months for international events.

8. What is the mode of payment to the MSEs towards reimbursement of airfare / freight subsidy participated in a foreign/domestic exhibition?
Payment to the SC-ST MSEs towards reimbursement of airfare/freight subsidy under SMAS will be made through PFMS. SC-ST MSEs are required to submit a cancelled cheque (Proprietor/Partnership/Company as the case may be) at the time of submitting the application for participation in an exhibition. Prior approval is required to obtained before participation in the domestic/ international exhibitions to avail the benefits under SMAS.

III. Bank Loan Processing Fee

1. What is Bank Loan Processing Reimbursement Scheme?
Bank Loan Processing Reimbursement Scheme is a sub scheme under NSSH. Under this processing fees charged by the Finance Institutions for sanctioning of business loans (both against fund and non-fund-based limits) to SC/ST MSEs is reimbursed.

2. What benefits can be availed under the scheme.
The assistance under this scheme for reimbursement of Bank Loan Processing Fee is limited to 80% of the fee or Rs. 1,00,000 (excluding GST and other applicable taxes) whichever is less. The benefits under the scheme can be availed only after disbursement of business loans in a financial year

3. Is there a limitation on availing the benefits of this scheme?
No. The benefits can be availed multiple times in a financial year by SC/ST MSEs, but the financial assistance shall be restricted to the ceiling which is Rs. 1,00,000 (excluding GST and other applicable taxes)

4. What kind of loans are eligible for benefits under the scheme.
SC/ST MSEs who avail loans from any Scheduled Commercial Banks, Non-Banking Finance Companies (NBFCs) and State Finance Corporations may be considered under the Scheme where loan processing fee is charged by such banks/NBFCs/State Finance Corporations.

5. What are the eligibility criteria?
All SC/ST MSEs can avail the benefits under the scheme upon submission of duly signed application along with relevant documents mentioned in the guidelines available at https://www.scsthub.in/bank-guarantee-charges-reimbursement-scheme.

6. How should I apply to avail benefit under the scheme?
You may apply online on National SC-ST website www.scsthub.in) or visit the nearest CSC-VLEs to apply online.  

7. Whether I can club this scheme benefit with another scheme?
Clubbing this scheme with any other scheme is not permitted. Any SC-ST MSE availing reimbursement under this scheme can not avail reimbursement of bank loan processing fees, from any other scheme of government or private agencies.