Best Government Subsidy For Small Business in India
With an aim to help normal working of the industries within the small sector groups, the central government has announced the launch of the new subsidy program. This new program offers with best support to new and existing entrepreneurs in the country. With an aim to help small scale industries flourish the state and central government always ensure new implementations are made on regular basis. The new implementations are made towards MSMEs and here we have tried to provide you with in dept list of all such subsidy schemes by government.
1 MSME- Credit Guarantee Fund Scheme (CGFY)
- The central government had launched the CGMSME (Credit Guarantee- MMSME) scheme. The government will offer collateral free loan as credit for MSME units.
- Both existing and new entrepreneurs can take benefit of this scheme. A trust for funding the scheme – CGFT (Credit guarantee fund trust) was formed by the central government.
- The trust is responsible for communicating with both Banks and MSMEs for implementation.
- Under the scheme the government will provide beneficiaries with a credit in the form of capital loan. A total sanction amount of Rs 100 crore will be offered to beneficiaries by the government. Central and SIDBI will contribute in 4:1 ratio.
2 Subsidy for Organic Farms
- The scheme was implemented nationwide by the government. Government will offer subsidy to various sectors in organic farms, bio fertilizer and natural commercial products.
- NABARD and NCDC will be responsible for regulating the release of the funds. The funds will be released only after approval by the DAC.
- Fifty percent coverage will be provided by the government under this scheme. This amount will be given away to the banks in the form of reserve funds. Later on the bank will give this fund to the borrower.
3 Technology upgrading funding Yojana for Textile Industry (TUFS).
- Textile Ministry had announced the implementation of this scheme for improving textile industry sector. Under this scheme it is estimated that Jute industry will also be offered with benefit.
- The scheme to be implemented was introduced in early April – 1999. Under the scheme the government aims at modernization of textile industries and machineries and presently each beneficiary is entitled to get reimbursement of 5 percent.
- The government offers with reimbursement to be given on interest rate along with difference of 5 percent is calculated on the basis of fluctuation given by FCL.
- A 15 percent subsidy is offered as credit while 20 percent credit is given to loom sectors.
- 5 percent and 10 percent subsidy is offered by the government on interest and capital reimbursement for machinery.
4 Upgradation, Establishment and Modernization food processing sector scheme
- The scheme was implemented with an aim to offer assistance to food processing units. It will also offer benefit for other sectors including Milk, Fishery, Poultry, Agricultural and meat industries.
- Assistance for mushroom, food product and flavor enhancement will be offered under this scheme.
- A 25 percent subsidy will be offered by the government against machinery with an assistance of Rs 50-75 lakhs.
5 Leather industry Improvement scheme
- Subsidy benefit will be offered to leather accessories industries, tanneries and leather industry.
- Subsidy amount can be used by beneficiaries for upgrading already existing units and new units along with capital.
- The beneficiaries are expected to submit a registration copy of their units along with NOC documents.
- The benefit will be provided for existing units by the government and benefit will only be provided after all documents are submitted.
6 Capital linked and Upgradation of technology scheme for credit (CLCSS)
- For any establishment to operate, upgrading and advancement is important. This will help in lowering the operation cost and set their brand name in the current market.
- SSI Ministry will help regulate the scheme implementation and the fund can be used for upgrading already existing units. This will help increase production level.
- Capital credit will be offered to the entrepreneurs by CLCSS along with 15 percent subsidy with a limitation not exceeding Rs 15 lakhs in value.
- The fund can be used for upgrading the already existing machinery and plant units. Any unit that is big or small along with limited sector can get the benefit.
7 MSME market development scheme
- Under this scheme the financial assistance will be provided to the MSMEs for taking part in the trade fair and exhibitions.
- Entrepreneurs can make use of this for being a part of the international trade fair and exports oriented fairs.
- The government will provide with 75 percent annual fee or registration fee, in the form of reimbursement. Government will make payment to GSI directly for three year time frame.
8 Technology and quality upgrading MSME scheme for support
- This scheme will offer benefit to the MSME sector for upgrading and improving technology for better quality.
- All benefits will only be provided for ISO14001 units and ISO certified units that are registered with the government.
- The subsidy can be used for improving the production quality, upgrading units in terms of technology and increasing production along with expansion in the international and local market.
9 Tool room and Training center scheme
- A subsidy will be offered by the government for improving training center and tool room that are state government owned.
- Government will offer with single time assistance that is equivalent to around Rs 9 crore or 90 percent in the form of subsidy.
- The fund can be used for upgrading the already existing units and tool rooms. Amount offered will be equivalent to Rs 7.50 crore of 75 percent of the total cost.
- The government will also ensure that improved facility be given in tool rooms that are established within the state with an aim to provide assistance to small and medium scale units.
- It will further assist in providing better job opportunities for both unskilled and skilled labors, designers and engineers.
10 Government subsidy for small business by NSIC
- NSIC will offer with marketing and material purchase subsidy. People can make use of this fund for purchasing raw materials for their business.
- Entrepreneurs can make use of the fund for importing raw materials. They can also use it for improving the quality of production.
- NSIC will also offer with support for marketing of products for medium, small and micro sectors.
11 Small scale unit cold chain subsidy
- Government will offer with complete support to the cold chain industries for market coverage and upgrading their units. Already existing infrastructure can be improved by making use of this subsidy fund for new and old companies.
- The fund can be used for upgrading reefer vans, cooling units and coolers.
- The government will make the funds available for processing units, marine industries, poultry units, meat industries, organic industries and collection centers.
- All groups including FPO, NGO and SHG are eligible to take the benefit of this scheme.
12 coconut producing units scheme for advancement in technology (TMOC)
- Coconut development board will offer assistance for improving technology for production (TMOC).
- Any person who wants to set up coconut production unit can take benefit under this scheme.
- The assistance will be provided by the government for exchanging technology details to the candidate.
- Assistance will be provided to the beneficiary who wants to establish coconut related products including oil, milk, tender water and powder industry.
13 Marine-Agro processing scheme SAMPADA
- This is a government scheme for marine products and agro processing units. It will offer with complete support to new and old units.
- Government has set a budget of Rs 6000 crore to be given under this scheme that can be made use of by farmers for doubling their income and eliminating wastage of food produce.
14 Government subsidy for Dairy Farms
- NABARD shall help improve the dairy industries under this scheme. Assistance will also be offered to milk and animal produce industries.
- Subsidy will be given to units that are involved in producing animal feeds, gobar gas, agricultural products and animal produce.
15 Small business scheme for Horticulture subsidy
- NHB was set up with aim to implement advanced technology for harvest management and horticulture.
- Subsidy will also be given for product promotion, market development, infrastructure improvement.