MINISTRY OF COMMUNICATIONS AND INFORMATON TECHNOLOGY (Department of Electronics and Informat ion Technology)

Notification

No.: W -36/1/2013-lPH\f\I New Delhi , the 041ri March 2014

Subject: Scheme for supporting MSMEs in the electronics s ector. 1. OBJECTIVE:

T he Scheme for supporting MS!v1Es in the electronics sector aims at provid ing f inancial support to MSMEs to promote manufacturing, to build quality into Indian manufacturing & also to encourage exporters. The support under the Scheme will be provided in the form of reimbursement to the manufacturers in the MSMEs. The scheme for providing financial support as G rant in Aid is expected to benefit the manufacturers, domestic industry, exporters in the electronics sector. The Scheme will provide GIA for the ;ollowing activities:

(i) Reirnbursement of expenses relating to compliance of electronic goods vv'i th "Indian Standards".

(ii) Reimbursement of expenses for testing and certification required for export.

(iii ) Development of Electronic Manufacturing Clusters.

2. (i) . Feimbursernent of expenses relating to compliance with " Indian Standards" :

Total Grant Ava il~ble : T he total. GIA for one model is lim ited to Rs. 1 Lacs on ly . T he Total G IA avai lable under this section of the Scheme is Rs. 2 Crores for 200 models (max) .

Purp~se : Reimbursem.e_nt of expenses relating to compliance of notified goods to Indian Standards not1f1ed by DeitY.

Eligibilit y : All the Micro , Sma!I and Medium enterprises registered in Ind ia , as defined Jn the MSME Deve lopment.Act are eligible under the Scheme.

F inancial .support:. The Scheme will provide the following incentives to MSMEs for complying to Ind ian Standards notified by DeitY .

a) ~eimbursement . of actual testing charges subject to the testing charges incurred for get'.ing the pr~ducts tested at STQC labs (for init ia l reg istration as _we ll as during surveillance) as per prevailing rates of test charaes levied by ~~QC labs. The maximum re-imbursement under the sche...,me would be l1m1ted to Rs .75000/- (max).

b) Reimbursement of actual test charges (Max. Rs. 25000/-). received by BIS for Registration

c) The orant would be giv t , v en o a manufacLurer for maximum of f ive models.

Implementation: Proposals for Grant in Aid 11 b . . Depa rtm t f El w1 e received directly by format. ;~e oGra~t~r~~~~d a~d Information Technology (DeitY) in the prescribed S rt

. d e granted based on submission of the fo llowino uppo 1ng ocuments : v

a) Application in the DeitY prescribed format.

b) Receipt of payment of testing charges for getting the product/model tested from BI S approved labs.

c) Proof of successful Reg istration with BIS for the model for which GIA is being taken.

d) BIS Registration Certificate .

e) Affidavit that the grant taken for complying to the Indian Standards has actually been spent for the purpose .

f) Any other document as may be required from time to time

2. (ii). Reimbursement of expenses for testing and certification required for export:

Total Grant Available: The total GIA under the Scheme for one model is Rs 1.25 Lacs (max). The Total GIA available under this section of Scheme is Rs. 20 Crores for 800 models (max) .

Purpose: Reimbursement of expenses fo r testing and certification required for export.

Eligibility : All the Micro, Small and Medium enterprises registe red in India, as defined in the MSME Development Act are eligible under the Scheme.

Financial Support: The Scheme will provide the following Gii\ to MSMEs to comply with the regulations/standards of the buying countries.

(a). Reimbursement of testing charges incurred for getting the products tested from any lab domestic/abroad subject to the testing charges incurred for getting the products tested at STQC labs as per prevailing rates of test charges levied by STQC labs The maximum re-imbursement under the scheme would be limited to Rs.75000/- (max).

(b) . Reimbursement of 25% charges towards the annual certification fee pa id to any certification body (domestic/abroad ) per model at actual , subject to :

Rs.50,000/-(max) for one model. Two certifications maximum

Each model would qualify only once under the scheme.

Implementation: Proposals for Grant in Aid wil l be rece ived directly by Department of Electronics and Information Technology (DeitY) in the prescri~ed format. The Grants would be granted based on submission of the following supporting documents:

a) Application in the DeitY prescribed format

b) Receipt of payment of testing .

c) Receipt of certification fee paid to Certification Body for the purpose of exports.

d) Proof of export of the model for which GI.A, is being taken .

e) Affidavit that the grant taken for complying to the Indian Standards has actually been spent for the purpose.

f) Any other document as may be required from time to time.

2. (iii). Development of Electronics Manufacturing Clusters by MSMEs :

Total Grant Available :The Total GIA available under this Section of the Scheme for Development of Clusters is Rs . 2 Crores. The GIA of Rs. 10 Lacs /Cluster (max) would be available for setting up of 20 Clusters .

Purpose: Reimbursement of expenses for diagnostic study , soft intervention and for preparing DPR etc.

Eligibility: The GIA will be provided to the local industry association or State Govt agency or Special Purpose Vehicle (SPV) for the purpose.

Financial Support: The following incentives will be provided to the Greenfield EMCs and Brownfield EMCs under Electronics Manufacturing Clusters (EMC) Scheme:

a) For a diagnostic study of each cluster - Rs 2.5 Lacs /cluster (max)

b) Gol grant for the soft interventions will be 75% of the sanctioned amount of the project cost in the DPR. The GIA would be subject to Rs 2.5 lacs/cluster (max).

c) For DPR- Rs . 5 Lacs /cluster (max) .

Implementation:

a) Proposals for Grant in Aid will be received directly by Department of Electronics and Information Technology (DeitY) in the prescribed format.

b) All the proposals received for GI/\ will be placed before the Committee constituted by DeitY for examining such proposals under the EMC Scheme. Applicant organizations will make presentations before Committee , if necessary. The organizations will have to furnish information I documents as sought by the Committee . A steering Committee for the purpose would consider the applica tions and grant in-principal approva l. The final report has to be submitted within six months of the in-principal approva l.

c) 50% of amount sanctioned for the Diagnostic Study wi ll be released after the in-principal approval and balance 50% will be released only after acceptance of report .

d) Gol grant for the soft interventions will be 75% of the sanctioned amount of the project cost. 50% of the GIA amount sanctioned in the DPR for soft interventions will be released afte r the in-principal approval and the balance 50% will be released only after final approval of th e report subject to the criteria that they have incurred their share of expenditure . Th is may include soft interventions like Technical assistance , capacity building , exposure visits, market development, trust building, awareness, counseling , seminars , workshops , training programs on techno logy up gradation etc

e) The Grants for the DPR would be granted based on the following criteria

(i ). 20% of GIA would be granted when the initial technically feasibl e and financially viable project report for setting up of a common facility centre for cluster (DPR) is found complete in all respects by the committee and is submitted for appra isal . of the Steering Committee of OeitY

(ii). 30 % of the GIA would be granted when in-principal approval 1s given by steering Committee for the cluster.

(iii). 50% of the GIA would be granted when the fina l approva l is granted to the DPR within six months of the in-principal approva l.

Documents Required:

a) Application in the OeitY prescribed format.

b) Copy of the in-principal approval of DPR

c) Copy of fina l approva l of DPR

4

d) Bills for carrying out diagnostic study of each cluster, soft interventions like awareness, counse ling , seminars , workshops, tra ining programs on technology up gradation in a case of EMC Cluster and charges incurred for preparing DPR.

e) Proof of spending the share from the client for soft interventions .

f) Affidavit that the grant taken for complying to the Indian Standards has actually been spent for the purpose .

g) Any other document as may be required from time to time .

Time Period :

(i). The Scheme is for 2 years from the date of its notification for the MSMEs.

(ii). The Scheme would be applicable for 2 years (max) or no. of models proposed under the Scheme or till the allocated budget is available for that particular area of the Scheme , whichever is earlie r.

(iii). The budget under various headings of the Scheme are not interchangeable .

(iv). The duration of the Scheme could be extended based on necessary approvals .

(Dr. Ajay Kumar) Join1 Sccrct;iry io Govcrnmrnt of lndia

5

Application form for Grant in Aid for assistance to MSMEs for development of Electronic Manufacturing Cluster

{Please refer the scheme document for details) Initial Application D After in principal approval D Final Approval D 1. Contact Details:

(a) Name of Applicant* (b) Registered Office (c) Local Manufacturing Unit (d) Telephone Number (e) Fax Number (f) Email Address * Applicant: Legal Entity.

2. Details of Grant in Aid applied for (GIA restricted to 10 Lakhs/Cluster max): _____ _

(a) Diagnostic study (Max 2.5 Lakhs/Cluster): i. Total amount (Rs.) ii. In principal approved on iii. GIA after in principal approval (Rs.), If applicable (50% max) iv. GIA after acceptance of report, If applicable(50% max)

(b) Soft Intervention( Max 2.Slakhs/Cluster): i. Amount sanctioned for project cost ii. GIA (75% of sanctioned amount) iii. 50% GIA after in principal approval iv. Amount spent by applicant (25% of sanctioned amount) v. 50% GIA after final approval

(c) DPR(Max 5 Lakhs/Cluster): i. 20% GIA sanctioned in DPR after approval of committee ii. 30% GIA after in principal approval of steering committee iii. 50% GIA after final approval

3. Have you received Grant in Aid under this scheme before this application? If yes, Please provide the details.

s. Scheme Details I Grant No & Date Purpose Total GIA No. Received( Rs.)

1. 2. 3. 4. 5.

4. Declaration :

I I We, the undersigned, hereby declare that the particulars (and all the documents attached herewith) in this application are true and correct to the best of my I our knowledge, and I I We have not wilfully suppressed any material I fact, which will render this application invalid. I / We have actually incurred the expenses claimed for reimbursement under the scheme. I /We undertake to refund any amount released by DeitY on receipt of such request from DeitY. In case of any dispute I problem, the decision of DeitY shall be final and binding on a IL

Authorized Signatory Name: _________ _

Place:----------Date:----------

Enclosures (--./ Tick Appropriately) 1. Application in prescribed format. 2. Copy of in principle approval. 3. Diagnostic study report . 4. Details of amount spent in Soft Intervention with supported documents. 5. Final approval of soft intervention . 6. Approval of committee for DPR. 7. Approval of steering committee for DPR. 8. Final approval of DPR. 9. Any other document as may be required from time to time .

Note: The completed application form along with the enclosure is to be sent to :

Mrs. Asha Nangia Director IPHW Division Department of Electronics and Information Technology Ministry of Communications & Information Technology Electronics Niketan, 6, CGO Complex, Lodhi Road, New Delhi : 110003

Application form for Grant in Aid for assistance to MSMEs for testing of electronic goods meant for export

(Please refer the scheme document for details)

1. Contact Details:

(a) Name of Applicant* (b) Registered Office (c) Local Manufacturing Unit (d) Telephone Number (e) Fax Number (f) Email Address * Appl icant: Legal Entity.

2. Investment in plant & machinery ("./ Tick Appropriately):# Does not exceed twenty five lakh rupees (Micro Enterprise) More than twenty five lakh rupees but does not exceed five crore rupees (Small Enterprise) More than five crore rupees but does not exceed ten crore rupees {Medium Enterprise) #Please provide audited Balance Sheet of Previous Year to support the above.

3. Details of Grant in Aid applied for ( GIA restricted to 2 certifications per model} : s. Product Model Brand Certification Certification Testing Lab!! No . Body! Charges( Rs.) 1. 2 . ! NABL Accredited testing labs would be preferred . ! ! QCI Accredited certification bodies would be preferred .

Testing Charges (Rs.)

4. Have you received Grant in Aid under this scheme before this application? If yes, Please provide the detai ls.

S. Scheme Details I Product Model Brand Purpose Total GIA Received(Rs .~1 No. Grant No & Date (Cert.

/Testing) 1. 2.

5. Declaration :

I I We, the undersigned, hereby declare that the particulars (and all the documents attached herewith) in this application are true and correct to the best of my/ our knowledge, and I/ We have not wilfully suppressed any material I fact, which will render this application invalid . I / We have actually incurred the expenses claimed for reimbursement under the scheme. I /We undertake to refund any amount released by DeitY on receipt of such request from DeitY. In case of any dispute I problem, the decision of DeitY shall be final and binding on all .

Authorized Signatory Name : ~--------~ Place:----------Date: _________ _

Enclosures ("J Tick Appropriately) 1. Appl ication in prescribed format. 2. Audited Balance Sheet of Previous Year. 3. MSME registration certificate (Certified Copy) 4 . Receipt of payment of testing charges for getting the product/model tested/

certified from BIS/ NABL approved labs (In original). 5. BIS registration certificate (Certified Copy)/ Certificate from

certifying for exports. 6. Any other document as may be required from time to time.

Note: The completed application form along with the enclosure is to be sent to:

Mrs. Asha Nangia Director IPHW Division Department of Electronics and Information Technology Ministry of Communications & Information Technology Electronics Niketan, 6, CGO Complex, Lodhi Road, New Delhi: 110003

other accred ited

Application form for Grant in Aid for assistance to MSMEs for compliance to CRO (Please refer the scheme document for details)

1. Contact Details:

(a) Name of Applicant* (b) Registered Office (c) Local Manufacturing Unit (d) Telephone Number (e) Fax Number (f) Email Address * Applicant: Legal Entity.

2. Investment in plant & machinery (..../ Tick Appropriately) :# Does not exceed twenty five lakh rupees (Micro Enterprise) More than twenty five lakh rupees but does not exceed five crore rupees (Small Enterprise) More than five crore rupees but does not exceed ten crore rupees (Medium Enterprise) #Please provide audited Balance Sheet of Previous Year to support the above.

3. Details of Grant in Aid applied for (GIA restricted to 5 models/ manufacturer): S. Product Model Brand Registration Registrati Testing Lab Testing No. No. on Charges

Charges (Rs.)! (Rs.)

1. 2. 3. 4 . 5. ! Lab should be BIS recognized.

4. Have you received Grant in Aid under this scheme before this application? If yes, Please provide the details.

s. Scheme Details I Product Model Brand Purpose Total GIA No. Grant No & Date (Cert./Reg.) Received(Rs.) 1. 2. 3. 4 . 5.

5. Declaration :

I I We, the undersigned, hereby declare that the particulars (and all t he documents attached herewith) in this application are true and correct to the best of my/ our knowledge, and I / We have not wilfully suppressed any material I fact, which will render this applicat ion invalid. I / We have actually incurred the expenses cla imed for reimbursement under the scheme. I /We undertake to refund any amount released by DeitY on receipt of such request from DeitY. In case of any dispute / problem, the decision of DeitY shall be final and binding on all.

Authorized Signatory Name:

----------

PI ace:----------Date:

----- - - - --

Enclosures (..../ Tick Appropriately) 1. Application in prescribed format. 2. Audited Balance Sheet of Previous Year. 3. MSME registration certificate (Certified copy). 4. Receipt of payment of testing charges for getting the product/model tested from

BIS approved labs (In origina l). 5. BIS registration certificate (Certified Copy). 6. Any other document as may be required from time to time.

Note: The completed application form along with the enclosure is to be sent to:

Mrs. Asha Nangia Director IPHW Division Department of Electronics and Information Technology Ministry of Communications & Information Technology Electronics Niketan, 6, CGO Complex, Lodhi Road, New Delhi: 110003