Lok Sabha Question No. 3158 (UNSTARRED), answered on 2024-12-13
Subject: Promotion of Chemical Manufacturing Units
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Aashtikar Patil Nagesh Bapurao

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF CHEMICALS AND PETROCHEMICALS

## LOK SABHA

## UNSTARRED QUESTION NO. 3158

ANSWERED ON 13.12.2024

## PROMOTION OF CHEMICAL MANUFACTURING UNITS

## 3158. SHRI AASHTIKAR PATIL NAGESH BAPURAO:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a):whether there are any Government scheme to support small-scale chemical manufacturing units in Hingoli; and
- (b):if so, the details of incentives or assistance that are being provided under these schemes, if not, the reasons therefor?

## ANSWER

## THE MINISTER OF STATE FOR CHEMICALS AND FERTILIZERS

(SMT. ANUPRIYA PATEL)

(a): Government of India through Ministry of Micro, Small & Medium Enterprises  (MSME) is implementing  various  schemes  /programmes  for  promotion  &  development of  MSMEs including Chemical Manufacturing MSMEs, which inter  alia includes; (i) MSME Champions Scheme; (ii)  Micro and Small Enterprises Green Investment and Financing for Transformation (MSE-GIFT) Scheme;  (iii) MSE Scheme for Promotion and Investment in Circular Economy (MSE-SPICE Scheme); (iv) Micro and Small Enterprises Cluster Development Programme (MSE-CDP) Scheme; and (v) Procurement and Marketing Support (PMS) Scheme.

(b): The details of incentives or assistance provided to MSME under these schemes, are given at Annexure.

## A:  Financial Assistance to MSMEs under MSME Champion Scheme: MSME Champions Scheme:

MSME Champions Scheme is a Central Sector Scheme applicable to the Udyam registered manufacturing  Micro,  Small  and  Medium  Enterprises  (MSMEs)  across  India.  The  end objective is to pick up clusters and enterprises and modernize their processes, reduce wastages, sharpen  business  competitiveness,  and  facilitate  their  National  and  Global  reach  and excellence.  It comprises of three components i.e.,

- i) MSME-Sustainable (ZED) Certification Scheme ( launched on 28.04.2022 )
2. ii) MSME-Competitive (Lean) Scheme ( launched on 10.03.2023 )

MSME-Innovative (Incubation, Design & IPR) Scheme ( launched on 10.3.2022)

The details of the Scheme components under MSME Champions Scheme are as follows:

## i) MSME-Sustainable (ZED) Certification Scheme

##  Objective:

The ZED Certification envisages promotion of Zero Defect Zero Effect (ZED) practices amongst  MSMEs so as to encourage and enable MSMEs for manufacturing of quality products  using  latest  technology,  tools  &  to  constantly  upgrade  their  processes  for achievement of high quality and high productivity with the least effect on the environment and promote adoption of ZED practices.

## Cost of Certification

- Certification Level 1: BRONZE: Rs. 8,000/-

- Certification Level 2: SILVER: Rs. 32,000/-

- Certification Level 3: GOLD: Rs. 72,000/-

## Nature of Assistance:

## Subsidy on Cost of ZED certification:

- Joining Reward of Rs. 10,000/- (Bronze will become free if availed)
- 80-60-50% for Micro, Small and Medium MSMEs respectively.
- 100% subsidy for Women owned MSMEs

## Additional subsidy:

- 10%  for  SC/ST  owned  MSMEs  OR  MSMEs  in  NER/Himalayan/LWE/Island territories/aspirational districts.
- 5% for MSMEs which are also a part of the SFURTI OR Micro & Small Enterprises Cluster Development Programme (MSE-CDP) of the Ministry.

## Financial Assistance in Testing/Quality/Product Certification:

- Up to 75% of the total cost against multiple Testing/System/Product Certification, with the maximum ceiling of subsidy being Rs. 50,000/-

## Handholding Support:

- Up-to Rs.2 lakhs for consultancy for all ZED certified MSMEs.

## Support in Technology Upgradation for Zero Effect Solutions:

- Up-to Rs. 3 lakhs for all ZED certified MSMEs

## ii) MSME-Competitive (LEAN) Scheme

##  Objective:

The  objective  of  the  scheme  is  to  enhance  the  Domestic  and  Global  Competitiveness  of MSMEs through the application of various Lean Techniques That inter-alia includes:

-  Reduction in:
-  Rejection Rates
-  Product and Raw Material Movements
-  Product Cost
-  Optimization of:
-  Space Utilization
-  Resources like Water, Energy, Natural Resources Etc.
-  Enhancement of:
-  Quality of Products and Process
-  Production & Export Capabilities
-  Workplace Safety
-  Knowledge & Skill Set
-  Innovative Work Culture
-  Social & Environmental Accountability
-  Profitability
-  Introduction & Awareness to Industry 4.0
-  Digital Empowerment

## Implementation Cost (Max. per unit)

-  Basic Level:

Free

-  Intermediate Level:

₹ 1,20,000 + Taxes

-  Advanced Level: ₹ 2,40,000 + Taxes

## Nature of Assistance:

## Beneficiary Contribution

-  Basic NA
-  Intermediate Level: 10% of Total Cost of Implementation i.e., up to ₹ 12,000 + Taxes per unit (Max.)
-  Advanced Level: 10% of Total Cost of Implementation i.e., up to ₹ 24,000 + Taxes per unit (Max.)

## GOI Contribution:

- 

- Basic Level: NA

-  Intermediate  Level: MSME unit  will  be  entitled  for  up  to  ₹  1,08,000  (max.) towards the Implementation cost (Taxes Extra)
-  Advanced Level: MSME unit will be entitled for up to ₹ 2,16,000 (max.) towards the Implementation cost (Taxes Extra)

## Additional Benefit

- 

- Basic Level:

NA

##  Intermediate Level & Advanced Level:

- a) Additional  5%  GOI  contribution  for  MSMEs  which  are  part  of  SFURTI Clusters, Woman/SC/ ST owned, NER located MSMEs.
- b) OEM/ Industry Association route
3.  Additional 5% GoI contribution shall be given to the MSMEs registering through Industry Association/ OEM after completion of all levels.
4.  ₹ 5000/ per MSME shall be given to OEM/ Association after completing all stages of lean intervention.
5.  For availing this benefit MSME unit need to mention on while applying Applying  under  Original  Equipment  Manufacturer  (OEM)  or  Applying under Industry Association (IA).

## iii)      MSME-Innovative (Incubation, Design & IPR) Scheme

##  Objective:

MSME Innovative is  a  new  concept  for  MSMEs  with  a  combination  of  innovation  in incubation, design intervention and by protecting IPR in a single mode approach to create awareness amongst MSMEs about India's innovation and motivate them to become MSME Champions.  This  will  act  as  a  hub  for  innovation  activities  facilitating  and  guiding development of ideas into viable business proposition that can benefit society directly and can be marketed successfully.

## Nature of Assistance:

Incubation

-  Financial Assistance to HI for developing and nurturing the ideas- shall be provided up to maximum of Rs. 15 lakh per idea to HI.
-  Financial assistance for Plant and Machinery to HI up to Rs. 1.00 cr. (max) - shall be  provided  for  procurement  and  installation  of  relevant  plant  and  machines including  hardware  and  software  etc.  in  BI  for  R&D  activities  and  common facilities for incubatees of BI.

## Design

-  Design Project: 75% of the total project cost will be contributed by GoI up to a maximum of Rs. 40 lakh
-  Student Project: 75% of the total project cost will be contributed by GoI up to a maximum of Rs. 2.5 lakh

## IPR

-  A Grant of up to Rs. 1 crore would be provided to an IPFC in milestone-based (three or more) instalments
-  Reimbursement for registration of Patent, Trademark, Geographical Indications  (G.I.),  Design: The  maximum  financial  assistance  to  the  eligible applicants under the IPR component is as follows:

| S. No.   | Item                | Maximum Financial Assistance   |
|----------|---------------------|--------------------------------|
| i.       | Foreign Patent      | Rs. 5.00 lakh                  |
| ii.      | Domestic Patent     | Rs. 1.00 lakh                  |
| iii.     | GI Registration     | Rs. 2.00 lakh                  |
| iv.      | Design Registration | Rs. 0.15 lakh                  |
| v.       | Trademark           | Rs. 0.10 lakh                  |

## B:  Micro and Small Enterprises Green Investment and Financing for Transformation (MSE-GIFT) Scheme

Ministry  of  Micro,  Small  &  Medium  Enterprises  (MoMSME)  has  formulated  MSE-GIFT scheme  with  an  outlay  of  Rs  478  Cr for  the  period  of 2023-24  to  2025-26  to  develop  an ecosystem wherein institutional finance is made available to MSEs at a concessional cost to minimize/ overcome the incremental cost of clean/green technologies, which include energy from renewable sources like solar, wind, biogas, etc.; clean transportation that involves lower greenhouse gas emissions; energy-efficient projects like green building; waste management that includes recycling, efficient disposal, and conversion to energy, etc

## The key components of the MSE-GIFT Scheme include:

- I. Interest  Subvention  Component :  This  component  provides  affordable finance to MSEs for adopting green technologies by offering a 2% interest
2. subvention per annum for a maximum of 5 years on term loans up to INR 2 crores.
- II. Risk Sharing Facility : The scheme offers a Risk Sharing Facility to cover loans up to INR 2 crores for MSEs, providing financial assistance under a hybrid model to mitigate risk for financial institutions

## C:   Micro and Small Enterprises- Scheme for Promotion and Investment in Circular Economy (MSE-SPICE) Scheme

##  Eligibility :

- a. All Micro and Small Enterprises (MSEs) registered with the UDYAM portal of the Ministry of Micro, Small & Medium Enterprises are eligible to participate.
- b. MSE units must comply with Extended Producer Responsibility (EPR) and Waste Recycling targets set for industries.
- c. The investment of the unit should be towards the 11 identified CE sectors as per the scheme guidelines.

##  Financial Assistance:

- a. The loan size under the MSE-SPICE Scheme varies based on the project cost. For Brownfield  projects  in  MSEs,  the  maximum  project  cost  admissible  under  the scheme is INR 50 Lakhs, with a 25% subsidy on the cost of Plant and Machinery only.
- b. Projects costing more than INR 50 Lakhs are also admissible under the scheme, but the subsidy is limited to a maximum of INR 12.5 Lakhs/units.

## D:   Micro and Small Enterprises - Cluster Development Programme (MSE-CDP)

The Ministry of Micro, Small and Medium Enterprises (MSME), Government of India (GoI)  has  adopted  the  Cluster  Development  approach  as  a  key  strategy  for  enhancing  the productivity and competitiveness as well as capacity building of Micro and Small Enterprises (MSEs) and their collectives in the country. A cluster is a group of enterprises located within an identifiable and as far as practicable, contiguous area and producing same / similar products /  services.  The  essential  characteristics  of  enterprises  in  a  cluster  are  (a)  Similarity  or complementarity in the methods of production, quality control and testing, energy consumption, pollution control, etc (b) Similar level of technology and marketing strategies / practices  (c)  Similar  channels  for  communication  among  the  members  of  the  cluster  (d) Common challenges and opportunities.

## Components:

## I. Common Facility Centers (CFCs):

The GoI grant will be restricted to 70% the cost of project from Rs. 5.00 crore to Rs. 10.00 crore and 60% of the cost of project from Rs. 10.00 crore to Rs. 30.00 crore. In case of NE & Hill States, Island territories, Aspirational  District, GoI grant will be 80% of the cost of project from Rs. 5.00 crore to Rs. 10.00 crore and 70% of the cost of project from Rs. 10.00 crore to Rs. 30.00 crore. The project for CFC with project cost more than Rs. 30.00 crore can  also  be  considered  but  the  GoI  assistance  would  be calculated by taking into account the maximum eligible project cost of Rs. 30.00 crore.

## II. Infrastructure Development:

The GoI grant will be restricted to 60% of the cost of project from Rs. 5.00 crore to Rs. 15.00 crore for setting up of new Industrial Estate/Flatted Factory Complex and GoI grant will be 50% of the cost of project from Rs. 5.00 crore to Rs. 10.00 crore for up-gradation of existing Industrial Estate/Flatted Factory Complex. In case of NE & Hill States, Island territories, Aspirational Districts, GoI grant will be 70% of the cost of project from Rs. 5.00 crore to Rs. 15.00 crore for setting up of new Industrial Estate/ Flatted Factory Complex and 60% of the cost of project cost from Rs. 5.00 crore to Rs.10.00 crore for up-gradation of existing Industrial Estate/Flatted Factory Complex. The project for ID with project cost more than Rs.10.00 crore/15.00 crore can also considered but the GoI  assistance  would  be  calculated  by  taking  into  account  the  maximum eligible project cost of Rs. 10.00 crore/15.00 crore.

## E:   Procurement and Marketing Support Scheme(PMS)

To enhance the marketability of products and services in the MSME sector, Ministry of MSME has  introduced  Procurement  and  Marketing  Scheme  (PMS)  in  November  2019  &  revised during July, 2022 with the following objectives:

-  To encourage Micro and Small Enterprises (MSEs) to develop domestic markets and promotion of new market access initiatives.
-  To facilitate market linkages for effective implementation of Public Procurement Policy for MSEs Order of 2012.
-  To educate MSMEs on various facets of business development.
-  To create an overall awareness about Public Procurement Policy for MSEs, Trade Fairs, latest  market  techniques,  Modern  Packaging  Techniques,  e-Commerce,  Bar  Code, Export, GeM and other such related topics etc.

## SCHEME COMPONENT DETAILS

|   S.No | COMPONENT                          | SCALE OF ASSISTANCE                                                                                      |
|--------|------------------------------------|----------------------------------------------------------------------------------------------------------|
|      1 | Domestic Trade Fairs/ Exhibitions: | (i)Subsidy on space rent charges and contingency expenditure including travel, freight charges etc up to |

|    | Supporting MSEs to participate/ Organizing fairs/ Exhibitions   | Rs 1.50 Lakh in Metro/A class city and Rs.80,000 in other cities for each MSE unit. (ii)Trade Fair as decided by Empowered committee with IF Wing concurrence   |
|----|-----------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  2 | Workshops/ Seminars/ Vendor Development Program                 | Up to Rs. 5.0 lakh (Max.) per programme to Implementing Agencies                                                                                                |
|  3 | Adoption of Bar Code from Micros Enterprises                    | Reimbursement up to 80% one-time registration & annual recurring fee (1 st - 3 years) subject to max. Rs 50,650/-)                                              |
|  4 | Adoption of e-Commerce Platform                                 | Reimbursement up to 75% annual / subscription fee subject to max. Rs 25,000/- for on-boarding on 'MSME Global Mart' being run by NSIC.                          |
|  5 | Adoption of Modern Packaging Techniques                         | Up to Rs 15 lakh / cluster for empanelling packaging expert organizations like IIP, NID, NIFT to provide consultancy services                                   |
|  6 | Development of Retail Outlet                                    | Up to 30 lakh for infrastructure outlet area of 500 sq.ft for GI products, subject to 50% contribution from the retaile                                         |