MSME Subsidy in Delhi - Schemes, Benefits and Incentives

The MSME Subsidy in Delhi would provide financial support to Micro, Small and Medium Enterprises in the state. The MSME Subsidy in Delhi is important for Micro, Small and Medium Enterprises in carrying forward the economic development, thereby, generating employment opportunities and promoting entrepreneurship for such businesses. The MSME Subsidy in Delhi helps the MSME to come out of their miseries and to enhance competition through financial motive for capital investment, upgradation of technology and training. MSME Subsidy has been developed to build the state connecting to the resources and facilities, increasing production and industrialization to support economical developmental needs of the state and to reduce the burden of financial factors.

The MSME Subsidy in Delhi has its importance and several Micro, Small, and Medium Enterprises can benefit from it, as it leads to the growth and development of the economy of the state. Some of the benefits of MSME Subsidy in Delhi are listed below:

1. Lower Expenses: MSME Subsidy in Delhi helps in subsidized interest rates, taxes, and other lower utility charges to cut down capital used in businesses and operations.
2. Economic Growth: A significant portion of the state’s economy is obtained from the MSMEs, and the MSME Subsidy in Delhi assists in generating job opportunities and boosting the state’s GDP.
3. Job Opportunities: A huge number of workers and employee requirements for the MSMEs lead to the generation of employment opportunities for residents through MSME Subsidy in Delhi.
4. Promotes Entrepreneurship: The MSME Subsidy in Delhi aims at nurturing Micro, Small, and Medium Enterprise companies in the rural and semi-urban regions as they have high risks for business establishment due to unavailability of capital.
5. Regional Development: The MSME Subsidy in Delhi aims at industrialization of less developed areas, helping to minimize differences between developed commercial zones and rural areas.

The MSME Subsidy in Delhi provides financial assistance and incentives to Micro, Small, and Medium Enterprises under 7 categories which are listed below:

• Credit Linked Capital Subsidy Scheme for Technology Upgradation

  Parameter	Details
  Subsidy Rate	15% on institutional finance for technology upgradation (previously 12% prior to 2005)
  Eligible Loan Limit	Raised from Rs. 40 lakhs to Rs. 100 lakhs (effective from 29-09-2005)
  Calculation Basis	Calculated with reference to the purchase price of Plant and Machinery

• Credit Guarantee Scheme

  Parameter	Details
  Loan Type	Collateral-free loans
  Maximum Loan Limit	Up to Rs. 50 lakhs for individual MSEs

• ISO 9000/ISO 14001 Certification Reimbursement Scheme

  Parameter	Details
  Incentive Rate	75% reimbursement of expenses incurred for acquiring ISO 9000/ISO 14001 certification
  Maximum Reimbursement	Up to Rs. 75,000 or 75%, whichever is lower
  Eligible Units	Individual SISIs, Ancillary, tiny, and SSSBE units

• MSME Marketing Development Assistance (MDA)

  Parameter	Details
  Funding for Airfare	Up to 75% for participation in overseas fairs/trade delegations
  Funding for Publicity Material	Up to 25% of costs
  Funding for Sector-Specific Studies	Up to Rs. 2 lakhs
  Funding for Anti-Dumping Cases	50% up to Rs. 1 lakh
  Eligible Beneficiaries	Individual MSMEs and Associations

• Purchase and Price Preference Policy

  Parameter	Details
  Administration	Single Point Registration Scheme of NSIC
  Items Reserved	358 items reserved for exclusive purchase from MSMEs by the Central Government
  Facilities Provided	Free tender documents, exemption from earnest money/security deposit, and 15% price preference

• Quantum and Nature of Financial Assistance under PMEGP

  Category of Beneficiary	Beneficiary’s Contribution (of Project Cost)	Rate of Subsidy (of Project Cost)
  Urban Area	General Category	10%	15%
  	Special (SC/ST/OBC/Minorities/Women, etc.)	5%	25%
  Rural Area	General Category	25%
  	Special (SC/ST/OBC/Minorities/Women, etc.)	35%