Government of Maharashtra Programmes And Initiatives To Support MSME Registration by the Maharashtra government, Micro, Small, and Medium-Sized Enterprises (MSME) have developed into a thriving and active sector of the Indian economy during the past fifty years. By promoting entrepreneurship and generating significant employment opportunities at cheap capital cost, it significantly contributes to the economic and social development of the nation.
MSMEs support large corporations as auxiliary units, and this industry is actively involved in the country’s inclusive industrial growth. In order to meet the demands of both domestic and foreign markets, MSMEs are expanding their economic area of influence and producing a wide range of goods and services.
The Micro, Small and Medium Enterprises Development (MSMED) Act of 2006 divides Micro, Small and Medium Enterprises (MSME) into the following categories:
Micro Enterprise: A company with a revenue of under Rs 5 crore and an investment in machinery and plant of under Rs. 1 crore.
A small business is defined as one that has a revenue of under 50 crore rupees and an investment in equipment and machinery of under 10 crore rupees.
A company classified as a medium enterprise has an annual revenue of less than 250 crore rupees and an investment in machinery and plant of less than 50 crore rupees. The promotion and expansion of MSMEs is primarily under the purview of state governments. However, the Indian government assists state governments in their endeavors by implementing a number of policies and programmes supporting MSMEs.
The Ministry of MSME and associated organizations are charged with assisting states in their efforts to foster business development, employment opportunities, and means of subsistence while also enhancing the competitiveness of MSMEs in a changing economic climate.
Highlighting the fact that Maharashtra is a land of opportunity
With over 9.4% of the nation’s total land area, Maharashtra is the third-largest state in India. With three international airports, almost 303,000 km of roads, and 6,165 kilometers of rail infrastructure, the state has good links to all major markets. A total of 22% of all freight traffic in India is supported by the state’s 55 ports and 720 kilometers of coastline. Maharashtra’s state capital, Mumbai, is known as India’s financial center and is where the majority of major corporations and financial institutions have their main offices. It is also India’s top producer of crude oil through the Bombay High refinery. With a GSDP of almost $370 billion in the 2020–21 fiscal year, Maharashtra had the largest FDI inflow in the nation between 2000 and 2020 and contributed the highest amount of GDP of any state in India. Maharashtra is now a region of abundant opportunities as a result of all these factors.
Additional Information Regarding Maharashtra’s Possibilities:
➨A strong agricultural and industrial base.
➨Minerals are widely available.
➨workforce with education and skill.
➨High-quality facilities for research and development.
➨A prompt and active administration setup.
➨There are top-notch institutions for education and IT.
➨Telecommunications infrastructure and efficient electricity supply.
➨There are many connections and developments in the transport system.
➨Huge base of customers.
➨Maharashtra has the biggest economy in the nation and the greatest per capita income.
➨There is a vast network of professional education institutions, prominent R&D facilities, and excellent support infrastructure.
➨Increase in power production capacity.
➨In this highly industrialized state, industries like petrochemicals, automobiles, financial services, IT/ITES, and textiles are active.
➨It is one of the most desirable investment locations in the nation with a 27% export share.
➨Literacy rates for adults are 77 percent.
➨An extensive network of academic institutions:
➣12% of the nation’s universities are located here.
➣17% of medical colleges are found here.
➣There are 344 engineering universities, about 13% of the total.
➣19% of management organizations are present.
➣Produces 169,000 technocrats annually.
A Summary Of The MSME Sector In Maharashtra
Over 99 percent of all estimated MSMEs in India are thought to be in the micro sector, which is expected to have 630.52 lakh businesses. According to estimates, there are 3.31 lakh MSMEs in the small sector and 0.05 lakh MSMEs in the medium sector, which together make up around 0.52% and 0.01% of all MSMEs Of the anticipated 633,88 MSMEs, 324,88 lakh (51,225%) are found in rural areas, while 309 lakh (48,75%) are found in urban areas. 74.05% of all MSMEs in the nation are concentrated in the top 10 states.
An estimated 47.78 lakh MSMEs are located in Maharashtra, making up around 8% of all MSMEs nationwide. There are 0.17 lakh small businesses and 47.60 lakh micro firms among them. Maharashtra leads all other states with almost 3.8 lakh MSMEs registered under Udyam. Notably, MSMEs in the service sector make up a larger share of Udyam Registrations than MSMEs in the manufacturing industry. For MSMEs throughout the state, Maharashtra runs a range of programmes that include financing and financial assistance, training for skill development, improvements to the infrastructure, marketing subsidies, upgrades to the technology and quality, and other services.
Vision of the State Government for the Development of MSME
By encouraging entrepreneurship, producing jobs, and acting as a support system for large businesses, Micro, Small, and Medium Enterprises (MSME) make a significant contribution to the economic and social development of the nation. Since it is believed to be essential to achieving the government’s objective of a $5 trillion economy by 2024, this sector has received considerable priority from the government in recent years.
To achieve this throughout time, the federal government and corresponding state governments have taken a number of actions. According to recent data, MSME entities account for 48% of exports and 29% of the country’s GDP.
➨Over the years, Maharashtra has put in place a number of business-friendly programmes and policies that have helped MSMEs grow.
➨The incentive programmes that make up the core of the state industrial strategy are made to both stimulate new businesses and aid established ones in growing.
➨The Package Incentive Scheme (PSI-2019) provides incentives for MSMEs in the form of SGST payments, interest subsidies, power subsidies, stamp duty payments, and exemptions from electricity duty.
➨The state has divided its land into various “talukas” according on the degree of industrial growth in order to properly implement the MSME initiatives.
➨The category of taluka in which a unit is located determines how much incentive it will receive. From highly industrialized to less industrialized, talukas are categorized as A, B, C, D, D+, No industry districts, and Naxal-affected areas.
State government programmes and initiatives
Here are the top MSME programmes and financial incentives offered to MSMEs by the Maharashtra state government.
The Pradhan Mantri Mudra Yojana.
MUDRA Loans (PMMY) are made available under the Pradhan Mantri Mudra Yojana. Micro-Units Development and Refinance Agency is the full name of the organization. Under this programme, which is broken down into three categories—Sishu, Kishor, and Tarun—borrowers can obtain business loans ranging from Rs 50,000 to Rs 10 lakh.
➢Up to Rs 50,000 for Shishu.
➢From 50,000 to 5 lakh rupees for Kishor.
➢From 5 lakh to 10 lakh rupees for Tarun.
The Pradhan Mantri Yojana programme offers loans to MSMEs that are centered in the following sectors:
➢based on services.
➢production of food businesses.
➢Self-employed business people.
➢Repair and restoration shops.
Also read msme registration for small business
Stand Up India Programme
The Stand Up India Scheme provides borrowers from at least one scheduled caste or scheduled tribe, one female borrower, bank loans ranging from ten lakh to one crore, and one borrower per bank branch in order to launch a greenfield enterprise.This loan is available to businesses in the retail, service, and manufacturing industries. A SC/ST or female entrepreneur must own at least 51% of the shares and stake in non-individual enterprises.
Pramah Mantri Employment Generation Programme
The Khadi and Village Industries Commission (KVIC), the national nodal organization, is in charge of carrying out this programme . In each state, the scheme is run by the State Khadi and Village Industries Boards (State KVIBs), the District Industries Centres (District DICs), and the banks. In certain situations, KVIC disburses government funding via a list of pre-approved banks for eventual direct payment to the recipients or business owners. The maximum project or unit price in the commercial or service sector is Rs.10 lakhs, but it is Rs 25 lakhs in the manufacturing industry.
Industry-Specific Promotion Subsidy (IPS)
New and expanding MSME units will qualify for this incentive in accordance with the taluka classification. Available will be a 100% incentive subsidy. A qualified firm in the “C” category, for instance, would be eligible for a 40% subsidy on a Rs. 2 crore investment provided it had a fixed capital budget of Rs. 5 crores.
Furthermore, it will be refunded over a 7-year period in the form of a refund of the Gross GST due on the company’s sales. The difference will be carried over to the following year if the annual total SGST is less than the approved incentive.
This subsidy, which is based on interest paid to banks and other public financial institutions on term loans used to buy fixed assets, is only available for brand-new units. A maximum of 5% of the reduced interest rate may be allocated to the subsidies. The amount of interest subsidies paid to qualifying units each year must not be greater than the sum of their electricity bills for the same year.
Freedom from the electricity duty
All eligible new construction would not be subject to electricity duty for the applicable qualifying term in Group C, D, and D+ sites, No-Industry Districts, Aspirational Districts, and Naxalism-affected areas. For a period of seven years, only eligible 100% Export Oriented Units (EOUs), Bio-Technology Manufacturing Units, and Information Technology Manufacturing Units would be exempt from paying energy duty in Group A and B locations.
No Stamp Duty is Paid
Newly constructed units, together with those that are already in existence, would not be subject to stamp duty during the investment period in Group C, D, and D+ Talukas, No Industry Districts, Aspirational Districts, and Naxalism-affected areas.
In Group A and B regions, the following regions would not be subject to the stamp duty:
➢100% for IT and BT Manufacturing Units in Public IT or BT Parks
➢75% of BT Manufacturing Units and IT Manufacturing Units are in Private IT or BT Parks.
Electricity Tariff Subsidy
Newly founded MSMEs and small firms that meet the necessary criteria will be able to get power tariff subsidies. Businesses in Marathwada, Vidarbha, North Maharashtra, Sindhudurg in the Konkan Region, Raigad, Ratnagiri, No Industry Districts, Aspirational Districts, and Naxalism Affected Areas would receive a subsidy of Rs. 1 per unit for the energy they use and pay for.
On the other hand, the remaining businesses situated in other parts of the state are entitled to Rs 0.50 per unit for a period of three years starting on the day. Firms located in Group “A” locales won’t have access to this incentive, nevertheless.