ADDRESS: D’Sapphire Banquet Hall, Dattani square,

3rd Floor, Near. Papdi Telephone Exchange, Vasai (w).

Friday, 10th May, 2013. Timing: 10.00 am – 4.00 pm.

1

INDEX

Sr. no Subject

1. Introduction.

2. Programme Schedule.

3. Welcome ceremony.

4. Photos.

5. Participants List.

6. Visiting Faculty List.

7. Information About The Topics.

8. News And Advertisements.

9. Vote Of Thanks.

2

Introduction

SME Summit 2013 is the programme for the entrepreneurs

from Small, Micro and Medium Industries as well as New Entrepreneurs. The agenda of the programme is to solve the financial queries of the business like OD,TL,BG,LC, Working Capital, Different types of subsidies which is helpful for small and medium entrepreneurs and different government Rules & Schemes of KVIC, NSIC, DIC.

This summit is all about generating the new facts about the Project Report, Project Finance and for those who wanted to start their new business and for the entrepreneurs who wanted to expand their business in future.

3

PROGRAMME SCHEDULE Schedule SME Summit 2013 (10th May 2013)

Day Date Session No

Time Duration (Minutes)

Area to be covered

Faculty Names

Day 1

10th May, 2013.

1 10:45 to 11:15

30 Introduction to MIDI Mrs. Juhi Sinha

2 11:15 to 12:00

45 NSIC Schemes Mr. Hemant Wanelkar

3 12:00 to 12:30

30 Import-Export Opportunities, need & Importance in MSME

Sector

Mr. Waman More

4 12:30 to 1:00 30 Performance & Credit Rating Schemes

Mr. Avinash Chandra

5 1:00 to 1:30 30 Khadi & Village Industries Commission

Mr. B.K. Shrivastava

Lunch Break - 60 Minutes

6 2:30 to 3:15 45 Role of Bank &MSME Support Schemes -Bank Of

Maharashtra

Mrs. Sandhya Sohoni

7 3:15 to 3:35 20 Industrial Policies MSME Sector (DIC)

Mrs. Seema Pawar

8 3:35 to 4:00 25 Feedback & Velidictory Session.

Mr. Akshay Khanvilkar 4

WELCOME CEREMONY

5

Welcome of all the participants, Bankers and government faculties by Guest of honor i.e. by Mrs. Juhi Sinha (Project Officer, MiDi), Mr. Hemant Wanelkar, (Marketing Head, NSIC) and Mr. Avinash Chandra, (Zonal Manager-CARE Rating Agency), Mr. B. K. Shrivastava, (State Director, KVIC),

Photos

6

7

8

9

10

Participants- SME SUMMIT 2013, Vasai

There were 150 participants has been registered for this programme. Many Entrepreneurs/MSME Captains attended this Business Conference on 10th May, 2013.

11

Visiting Faculties

1. Mr. Hemant Wanelkar, Dy. Manager, National Small Industries Corporation. B.E. (Mechanical) and MBA (Marketing) qualified with 13 years of professional experience. Basically from Marketing background. Since 2010 working with NSIC.

2. Mr. Waman More, Central Bank of India, Faculty in SPBT college, awarded with ‘Certificate of Excellence’ in Foreign Exchange. M.Com, MBA (Banking and Finance), and CAIIB qualified with 32 years of Banking experience and 15 years of experience in Forex.

3. Mr. Avinash Chandra, Zonal Manager, Care Ratings, a Science graduate from Delhi University. Holds a Management Degree in Marketing and International Business. He has worked with Bank Of Punjab, Standard Chartered, Dun and Brads tread, and now working with Care Ratings from last 5.5 years.

He has worked with Small Scale Industries for 6 months.

12

4. Mr. B. K. Shrivastava : Dy. Director, Khadi and Village Industries Commission (KVIC). M.A. (Economics), D.B.M., L.L.B. qualified. More than 20 years of professional experience.

5. Mrs. Sandhya Sohoni : Branch Manager ( Waliv Branch), in Bank of Maharashtra. BA, LLB and CAIIB qualified. Overall professional experience of 15 years.

6. Mrs. Seema Pawar : Manager, District Industries Centre, M.Sc. Graduate from Mumbai University and overall experience of 10 years.

13

Information about the topics: A) Introduction about Maharashtra Industries Development Institute :

Maharashtra Industries Development Institute -Mrs. Juhi Sinha

Maharashtra Industries Development Institute (MiDi) was established in February, 2006.

MiDi is associated with Leading Public Sector Banks. With in a short span of six years MiDi is able to establish ourselves as one of the emerging bank support services and finance facilitator, particularly in Micro, Small, Medium and Large scale enterprises in Maharashtra.

MiDi works in following divisions: Divisions

1) Banking And Finance 2) Development & Training 3) Industrial / Technical Consultancy.

- Technology Development 4) Handholding Supports to MSMEs.

14

• We have dedicated and highly motivated professionals comprising of Chartered Accountants, MBAs, Engineers, Scientists, and Technocrats etc. MiDi is proud that it has helped more than 1000 entrepreneurs including agripreneurs and technopreneurs in Maharashtra to set up their business ventures running into several crores of rupees, there by generating not only wealth but also employment opportunities in the State.

Apart from finance, MiDi has also ventured into Training and Consultancy Services. MiDi has 10,000 Project list of different segments.

15

• B) NSIC Schemes: National Small Industries Corporation - Mr. Hemant Wanelkar i) Single Point Registration Scheme: NSIC registers Small Scale Units

which have got necessary capabilities in term of finance as well as technology for providing goods to various government agencies.

ii) Performance and Credit Rating: This scheme has been introduced for the first time in the country in Union Budget 2004-05 for SSI Units. NSIC is nodal agency for implementation of the scheme.

iii) Infomediary Services is a one-stop, one window to assist SSI Units by providing information on business, technology and finance, and also exhibit the core competence of Indian SMEs in terms of price and quality, internationally, as well as domestically.

iv) Facilitation of credit to small enterprises through banks, NSIC has entered into a strategic alliance with five public sector banks to facilitate long-term working capital financing requirements to small enterprises.

v) Finance for procurement of raw material against bank guarantee, Small Scale Industries often face shortage of quality raw material. In order to bridge the gaps, the Corporation provides raw material assistance to SSI units.

16

• C) Import-Export Opportunities, need & Importance in MSME Sector: Central Bank of India

MSME Sector plays a major role in India's present export performance. More

than 40% of the Indian Exports is being contributed by MSME Sector. Direct exports from the MSME Sector account for nearly 35% of total exports.

Besides direct exports, it is estimated that small scale industrial units contribute around 15% to exports indirectly. This takes place through merchant exporters, trading houses and export houses. They may also be in the form of export orders from large units or the production of parts and components for use for finished exportable goods.

It would surprise many to know that non traditional products account for more than 95% of the MSME exports.

India currently imposes a bound rate of 34.4% on average on its non agricultural imports and an applied tariff . India has about 700 agricultural products or tariff lines. However, this exclusion list includes both agricultural and industrial products, and India generally needs to use most of it to protect sensitive agricultural products. Duties cannot be increased and face a ‘standstill’ even on the excluded products.

With the reduction of applied tariffs, India’s imports have been going steadily up. Of course imports have also increased due to factors such as domestic growth and demand, exchange rate movements, domestic unavailability of products etc.

17

D) CARE Performance and Credit Rating for MSEs: Care Ratings - Mr. Avinash Chandra CARE has signed a Memorandum of Understanding with the National Small

Industries Corporation Limited (NSIC) to provide the NSIC and CARE Performance and Credit Rating for Micro and Small Enterprises (MSEs).

CARE's methodology for the Performance and Credit Rating Scheme for MSEs will cover various indicators encompassing the financial, business, operational and management aspects of MSEs. At the end of the rating exercise, MSEs will receive a rating which would state reasons behind the rating assigned and highlight strengths and weaknesses of existing operations.

Advantages of Rating: • Quicker and cheaper credit for rated MSEs. • Facilitate capability assessment and credibility of MSEs by their clients. • Help MSEs obtain leverage from the parties in the supply chain. • Affordable to MSEs since 75% of the rating fee is subsidized. Benefits of Rating: • An independent third-party evaluation adding to MSEs credibility • Credibility & confidence building with business partners • Scope of self correction & improvement • Enhanced visibility through publication on rating agency’s website • Wider recognition & acceptance • Introduction of good corporate governance practices Continued…

18

Eligibility for the Scheme All Micro and Small Scale units can avail the benefits under this scheme.

A manufacturing unit that has an investment of up to Rs. 500 lakh in Plant & Machinery and a service unit with an investment of up to Rs. 200 lakh is defined as a MSE unit. An SSI certificate/ Entrepreneurs Memorandum Part-II (EM Part-II) issued by the concerned SSI registration authority is a valid proof of eligibility.

Rating Process 1. Request for rating from the MSE. 2. Collection of information from the MSE. 3. Discussion with the MSE’s management. 4. Analysis of information obtained from the company. 5. Assignment of rating to the MSE. MSEs desirous of getting themselves rated will need to submit the

application in specified format, in duplicate. The application form should include documents as specified therein. Duly completed application form, addressed to CARE, can be submitted to the nearest NSIC / CARE office. Following this, the rating process will start and the interaction with the management would be initiated. The rating team may require extra information in order to complete the rating exercise. The entire rating process will be generally completed in a month's time or earlier, from the date the required documents and information is received by CARE.

19

E) KVIC : Khadi and Village Industries Commission - Mr. B. K. Shrivastava

• KVIC SCHEMES

• PMEGP (Prime Minister’s Employment Generation Programme):

1. The Scheme

Government of India has approved the introduction of a new credit linked subsidy programme called Prime Minister’s Employment Generation Programme (PMEGP) by merging the two schemes that were in operation till 31.03.2008 namely Prime Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas. PMEGP will be a central sector scheme to be administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME). The Scheme will be implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME as the single nodal agency at the National level. The Government subsidy under the Scheme will be routed by KVIC through the identified Banks for eventual distribution to the beneficiaries / entrepreneurs in their Bank accounts.

Continued……..

20

2. Objectives

(i) To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises.

(ii) To bring together widely dispersed traditional artisans/ rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place.

(iii) To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas.

(iv) To increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment.

Continued………

21

3. Quantum and Nature of Financial Assistance

Levels of funding under PMEGP

Note:

(1) The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh.

(2) The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh.

(3) The balance amount of the total project cost will be provided by Banks as term loan

22

Categories of beneficiaries under PMEGP

Beneficiary’s contribution (of project cost)

Rate of Subsidy (of project cost)

Area (location of project/unit) Urban Rural

General Category 10 % 15 % 25 %

Special (including SC / ST / OBC /Minorities/Women, Exservicemen, Physically handicapped, NER, Hill and Border areas etc

5 % 25 % 35 %

4. Eligibility Conditions of Beneficiaries (i) Any individual, above 18 years of age (ii) There will be no income ceiling for assistance for setting up projects under

PMEGP. (iii) For setting up of project costing above Rs.10 lakh in the manufacturing

sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification.

(iv) Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP.

(v) Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP.

(vi) Institutions registered under Societies Registration Act,1860; (vii) Production Co-operative Societies, and (viii) Charitable Trusts. (ix) Existing Units (under PMRY, REGP or any other scheme of Government of

India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible.

23

• SFURTI

With a view to making the traditional industries more productive and competitive and facilitating their sustainable development, the Central Government announced the setting up of a fund for regeneration of traditional industries, with an initial allocation of Rs. 100 crore. Pursuant to this announcement, a Central Sector Scheme titled the “Scheme of Fund for Regeneration of Traditional Industries (SFURTI)” has been drawn up and approved at a total cost of Rs. 97.25 crore. The Scheme will be implemented by the Union Ministry of Agro and Rural Industries (ARI) and its organizations and institutions, in collaboration with State Governments, their organizations concerned, non-Governmental organizations, etc.

Continued….. 24

2. Objectives of the Scheme

The objectives of the Scheme are:

(i) to develop clusters of traditional industries in various parts of the country over a period of five years commencing 2005-06;

(ii) to make traditional industries more competitive with more market-driven, productive, profitable and sustained employment for traditional industry artisans and rural entrepreneurs;

(iii) to strengthen the local governance systems of industry clusters, with the active participation of the local stakeholders, so that they are enabled to undertake development initiatives by themselves; and

(iv) to build up innovated and traditional skills, improved technologies, advanced processes, market intelligence and new models of public-private partnerships, so as to gradually replicate similar models of cluster-based regenerated traditional industries.

Continued…. 25

4. Target Sectors and Potential Beneficiaries

The target sectors and potential beneficiaries will include:

(i) Artisans, workers, machinery makers, raw material providers, entrepreneurs, institutional and private business development service (BDS) providers engaged in 2 traditional industries and working in selected clusters of khadi, coir and village industries, including leather and pottery.

(ii) Artisan guilds, cooperatives, consortiums, networks of enterprises, self-help groups (SHGs), enterprise associations, etc.

(iii) Implementing agencies, field functionaries of Government institutions/organizations and policy makers, directly engaged in traditional industries.

Project Monitoring and Evaluation

Concurrent and post facto evaluation studies will be conducted, from time to time, to take corrective measures. It is also envisaged to take up evaluation studies of some of the clusters under SFURTI to find out the deficiencies and drawbacks in the implementation of the Scheme.

26

• REGP • RISC • EXPORT INCENTIVE SCHEMES • INTEREST SUBSIDY SCHEME • KHADI SCHEMES • INSURANCE FOR KHADI ARTISANS • SCHEMES FOR ENHANCING PRODUCTIVITY & COMPETITIVENESS OF

KHADI INDUSTRY & ARTISANS • WOEKSHED SCHEME FOR KHADI ARTISANS • SCHEMES UNDER SCIENCE & TECHNOLOGY • Mahatma Gandhi Institute for Rural Industrialization (MGIRI) • S & T formats for agreement • R & D activities under KVIC – Technical Interfaces • Scheme for ‘ In House Test Laboratory ‘ for Khadi and Village

Industries. • Scheme for implementation of ‘ ISO 9001-2000’. • Scheme for “New R & D Projects’.

27

F) Role of bank and msme support scheme : Bank Of Maharashtra - Mrs. Sandhya Sohoni

Objective of MSME Loan Policy:

1. To improve flow of credit to MSME Sector so as to double the credit to the sector by the year 2015.

2. To formulate liberal norms of lending to MSME Sector, to ensure availability of adequate & timely credit to the sector.

3. To provide guidelines to the branches to dispense credit to MSME Sector on liberalized terms.

4. To devise an organizational structure at all levels for handling MSME credit portfolio in a more focused manner.

5. To comply with guidelines received from Reserve Bank of India from time to time for implementation.

Continued…………

28

MSME Advances would be:

All the advances to the MSME segments viz. Micro, Small and Medium Enterprises in the Manufacturing Sector irrespective of sanctioned limits, (including advances against TDRs/Govt. Securities etc for business purposes to these categories of Borrowers), and Advances to the MSME segments in the Services Sectors, Such as Professionals & Self Employed, Small Business enterprises, SRTOs/WRTOs and other Services, irrespective of sanctioned limits, (including advances against TDRs/Govt . Securities etc for business purposes to these categories of Borrowers)

PROVIDED these enterprises conform to their respective investment criteria

29

G) Industrial Policies MSME Sector : District Industries Centre, THANE - Mrs. Seema Pawar

DIC’s Main Activity

To develop and promote Cottage and Small Scale Industries in the district. The Small Scale Industries (SSI) means the Industries with investment above 25 lakh and up to Rs 5 (five) crore in plant & machinery.

FINANCIAL ASSISTANCE SCHEMES (DEPARTMENTAL)

Prime Minister's Employment Generation Programme (PMEGP) :

Ministry of Micro, Small and Medium Enterprises (MoMSME) has launched a

new credit linked subsidy programme called Prime Minister’s Employment

Generation Programme (PMEGP) on 61st anniversary of Indian Independence by

merging the two schemes that were in operation till 31.03.2008 namely Prime

Minister’s Rojgar Yojana (PMRY) and Rural Employment Generation Programme

(REGP) for generation of employment opportunities through establishment of

micro enterprises in rural as well as urban areas. PMEGP will be a central sector

scheme to be administered by the Ministry of MSME. Continued….

30

• The subsidy levels, the cost limit of projects or units that could be established under PMRY which was extended to rural areas as well in 1994-95, were quite low and unattractive compared to those available to the beneficiaries in REGP. While the maximum subsidy admissible was Rs.12500 and the maximum cost of project that could be established was Rs.5 lakh under PMRY, the maximum subsidy that was admissible was Rs.4 lakh and the maximum cost of project that could be established was Rs.25 lakh under REGP for a beneficiary belonging to General category. There were more attractive programmes for creation of self employment opportunities being operated by many State Governments. Recovery rates of loans under PMRY were also considerably less than those under REGP. PMEGP improves upon the subsidy levels and cost limits of projects compared to those available so far under PMRY and ensures that the attractiveness of REGP is not diluted in any way while simultaneously strengthening the selection process, implementation and monitoring mechanism

Continued……. 31

• Implementation of PMEGP in urban areas and other rural areas will be done through the State Governments {District Industries Centres (DICs)}. The newly introduced Rajiv Gandhi Udyami Mitra Yojana of MoMSME can also be tapped for providing handholding support to the beneficiaries under PMEGP.

• Budget Estimates 2008-09 have provided Rs.823 crore for PMEGP which includes Rs.83 crore towards Backward and Forward linkages including EDP training, publicity, marketing support, e-tracking of applications, physical verification of projects and so on. An estimated 6.17 lakh additional employment opportunities are targeted to be generated in 2008-09. The estimated total outlay for subsidy under PMEGP is Rs.4485 crore in addition to Rs.250 crore earmarked for providing Backward and Forward linkages to the micro enterprises between 2008-09 to 2011-2012 leading to an estimated generation of around 37.38 lakh additional employment opportunities. The scheme will be got independently reviewed after two years of its implementation.

32

2) Normal Bank Finance Scheme If is one of the major schemes for setting up SSI unit. The Projects/Schemes for the purpose should have sufficient equity participation.

3) Loan Under BSAI Act This assistance is mainly for Handicrafts Sector. Limit of loan up to Rs 10,000/-. The rate of interest is 8% with a rebate of 2.5% on regular re-payment.

33

INCENTIVE SCHEME FOR SSI

Maharashtra Incentive Scheme 2000 – SSI units commenced after 01.01.2000 will be entitled for this

scheme. The features of this scheme are...

a) 25% subsidy on fixed capital investment (Land, Building, Plant & Machinery)

b) 50% (60% in case of agro and food processing units, IT, Electronics industry) subsidy on paid

interest on Bank/FI loan for consecutive 7 years and 9 years

c) Remission of Stamp Duty and Registration Fee on purchase of Land or Buildings.

FACILITIES AND OTHER SERVICES

1.S.S.I. Registration

a) Provisional/Temporary Registration : Before starting the SSI Unit, this registration is issued

b) Permanent/Final Registration : After commencement of production of SSI Unit, this

registration is issued

2. Preference for power connection

Priority is given for MSEB electric power connection to registered SSI Unit .

3. Project/Scheme Vetting

Project Scheme of SSI unit is vetted for technical feasibility .

4. Marketing Assistance to Handicraft Products

Given through participation in Maharashtra Handicrafts Expo‘.

Continued…….. 34

5.Special Assistance rendered For setting up SSI Petrochemicals Downstream Units. 6. National Project of Bio-Gas Development (NPBD) Construction of Bio-gas plant (family size 1-cum to 10-cum). Main usage are... a) Domestic cooking and lighting b) Production of organic manure (enriched with NPK) for better yield in agricultural,

horticultural & piscicultural sectors c) Helps to maintain ecological balance. Provision of Govt. subsidy to all categories of

beneficiaries 7. Pollution Clearance for SSI Units Pollution Clearance Certificate (consent for starting all categories, viz. Green, Orange, Red of SSI units) is issued on behalf of government and also the consent to operate for

Green category only 8. Training Programme Some training programmes on different trades as mentioned below are organized from time to time for prospective entrepreneurs and handicraft artisans. i) Entrepreneurship Development Programme . ii) Special Training Programmes for Women/Physically Handicapped and Backward Classes

(plumbing, pump-set repair, umbrella repair, batik print, etc.) iii) Transfer of Skill and Service Centers. iv) Design Development/Craft Development for Handicraft Industries, Cane and Bamboo

Products, Wood Carving, Solapith work .

35

News at a glance

36

37

38

39

40

41

Vote of Thanks Mr. Akshay Khanvilkar (Asst. Project Officer, Maharashtra

Industries Development institute) has expressed vote of thanks of all the co-organizer of programme for adding their valuable inputs to conference and all the participants who participated in the summit.

*Next SME SUMMIT 2013 will going to held at Navi Mumbai in July 2013.

42