1676463240571A.-ANIMAL-FEED-15TH-FEB-2023

CATTLE & POULTRY FEED
[PACKAGED BAGS]
PROJECT REPORT/BUSINESS PLAN
SUBMITTED BY
Cattle & Poultry Feed Plant Project Report
PROJECT AT A GLANCE
Sl. Particulars Description

No.
1. Name of the Entrepreneur
2. Constitution (Legal Status)
3. Father’s/ Spouse’s Name
4. Unit Address
Taluk/ Block: __________________________________
District: __________________________________
PIN: __________________________________
E-Mail: __________________________________
Mobile: __________________________________
5. Name of the Project/
Business activity proposed
Product and By Product
6. Cost of Project
Work-Shed
Machinery & Equipment’s
Miscellaneous Fixed Assets
Preliminary & Pre-operative
Expenses
Contingency & Escalation
Total Capital Expenditure
Working Capital
7. Means of Finance
Term Loan
Margin Money Subsidy
Own Capital
8. Debt Service Coverage Ratio
9. Pay Back Period
10. Project Implementation

Period
11. Break Even Point
12. Employment
13. Power Requirement
14. Major Raw Materials
15. Estimated Annual Sales
Turnover
I hereby certify that the above statements are true and correct to the best of my knowledge.
Date: Signature of the Applicant

CONTENTS Page
No.
PROJECT REPORT 1-23
ANNEXURES LIST OF ANNEXURES Page

No.
ANNEXURE-I STATUTORY PERMITS AND BUSINESS LICENSES 24-25

REQUIRED FOR THE PROJECT
ANNEXURE-II IMPORTANT STEPS TO START THE PROJECT 26-27
ANNEXURE-III TIPS TO IDENTIFY SUITABLE PROJECT LOCATION 28-28

HIGHLIGHTS OF THE PROJECT
Sl. Particulars Description

No.
A. Nature of the Project
1. Name of the Project/ Business CATTLE & POULTRY FEED MAKING
activity proposed BUSINESS
2. Year-wise Capacity Utilisation Yr 01 Yr 02 Yr 03 Yr 04 Yr 05
50% 60% 70% 70% 70%
B. Cost of Project
1. Land/Commercial Space Own Space/ On Lease
2. Civil Works & Buildings Rs. 1,88,000.00
3. Plant & Machinery Rs. 4,18,000.00
4. Fixed Assets Rs. 1,37,000.00
5. Preliminary & Pre-operative Rs. 68,000.00
Expenses
6. Contingencies & Escalation @ 5% Rs. 37,000.00
Total Capital Expenditure Rs. 8,48,000.00
7. Working Capital Margin @25% Rs. 1,52,000.00
Total Rs. 10,00,000.00
C. Means of Finance
1. Term Loan from Bank @ 60% Rs. 6,00,000.00
2. Own Capital including Margin Rs. 4,00,000.00
Money Subsidy @ 40%
Total Rs. 10,00,000.00
D. Working Capital Loan/ Cash Credit (CC)
1. WCL/CC on First Year Rs. 4,55,000.00
2. WCL/CC on Second Year Rs. 5,58,000.00
3. WCL/CC from Third Year Onwards Rs. 6,60,000.00
Page | 1
1. GENERAL INFORMATION AND LOCATION :
Name of the Unit/

Firm
Address of the
Project/Proposed
Location
Size of the Space

Available
Own/ Under
Lease Rent
Agreement
2. PROMOTER’S BACKGROUND :
Name of the
Promoter
Age
Communication
Address
Educational
Qualification
Work Experience
Special Training
Attended, If Any
Page | 2
3. PROJECT INTRODUCTION :
Animal feed are food items produced or grown for the consumption of livestock or
poultry. These products are carefully grown and blended with numerous nutritional
ingredients that are essential to maintain the health of animals. The success of
commercial livestock farming largely depends on the continuous supply of good
quality nutritious feeds. Development of livestock farming is receiving attention
considering the nutritional requirements of the population as well as the large
employment opportunities generated by these activities. Besides, due to liberal
policies, there has been a substantial growth of livestock farms all over the country.
Along with the growth of the industry, the feed industry is keeping pace. In India, the
major portion of livestock caters to cattle and poultry farming. Cattle and poultry feed
are mixtures of various ingredients like maize, rice bran, groundnut cake, molasses,
soya bean cake, fish meal etc. The composition of cattle/poultry feed can be varied
depending on the availability of various raw materials. The commercial feed industry
largely caters to poultry followed by aquaculture and dairy cattle respectively.
Therefore, cattle and poultry feed production business is a profitable business if it is
located in an area where considerable numbers of livestock farms exist.
4. THE PROJECT PROPOSAL :
The proposed project is that of setting up of Cattle & Poultry Feed Making Business
unit at the proposed location. In view of the potential market opportunity of such
units, the present Project Report has been developed with the main objective to
productively utilize the available manpower resources of the local area and to enable
uninterrupted supply of quality products to market throughout the year.
5. PROSPECT FOR INVESTMENT :
Increasing disposable income among the population has instigated dietary changes
such as eating more protein and meat products. The per capita consumption of
eggs, boiler meat and milk is growing significantly. Due to rising demand for milk, the
demand for commercial cattle feed is projected to increase in India, as the dairy
industry structure is becoming more organized. The acceptance of non-vegetarian
diet can be indicated by the fact that KFC, the world’s most popular chicken
restaurant chain is now operating in 135 countries with more than 22,000 restaurants
globally. Hence the cattle and poultry farmers are now more concerned over the
health and yield of the livestock which in turn serving the global animal feed market
growth. The market is further aided by the emergence of non-traditional feed
ingredients and technological advancements as well as innovations, such as the
creation of genetically modified animal feed ingredients. In addition to this, due to the
growing Indian economy and expanding consumer class especially the middle and
higher income segment, Indian Animal feed market is expected to grow at a
compound annual growth rate of 6.09% over the time-period to reach a market size
of US$16.653 billion in 2025 from US$12.677 billion in 2020.
Page | 3
6. POTENTIAL TARGET CUSTOMERS/MARKET :
The growing population, increasing urbanization and rising consumerism has fuelled
the demand for fast moving consumer products in the market. Increasing internet
penetration is also leading consumers to buy FMCG Products through online
channels thus contributing to the growth in the FMCG market. The potential target
customers and market for the proposed set-up would comprise of customers of local
area, Retail Stores, Traders and Suppliers of all tier II/III cities / towns across the
country.
7. MARKETING STRATEGY :
7.1. Marketing Strategy : In any business, a solid marketing strategy is

critical for building a brand, attracting new customers and maintaining loyalty.
Through marketing, customers may desire to try the products or services and this will
trigger a purchase decision. When customers are happy about the products or
services, they become the brand ambassadors by default. They will spread the word
and sales will start to increase automatically. Accordingly, if the product or service
offered is new to the market, it need to be more aggressive and strategic.
Marketing plan of the proposed project would include the following measures;
• Marketing objective would be to enter into long term contracts with the
retailers and traders to achieve that optimum level of capacity utilization at an
early date.
• Once a few long-term contracts are established and a presence is built in the
market such that the market perceives the benefits being offered by the
service, then the incremental effort required to secure new clients would be
minimal. In addition to direct marketing to the potential clients, the business
would be advertising in trade journals and similar publications communicating
the benefits of the service and educating the customers.
• In addition to selling through retail channels, efforts would be made to

penetrate sale through online shopping channels too. This will allow regular
supply of the products from the unit for customers to shop from the comfort of
their home.
Page | 4
8. CRITICAL SUCCESS FACTORS :
Successful and sustainable operation of MSME business unit would depend on the
following main critical factors:
• Procuring high quality raw-materials/consumables and securing its regular

supply in economical price.
• Technical know-how and experience of the entrepreneur in the field is

absolutely necessary. Complete adherence to best practices is critical to the
success of this project.
• The entrepreneur should be aware of the supply and demand conditions of

the market.
• Properly trained manpower should be engaged.
• Knowledge about local environmental regulations and compliance

requirements.
• Efficient recovery of wastes and their utilization may improve operational

performance.
• Never compromise with the quality of the Products or Services. Ensure quality
consistency and customer satisfaction in order to get a comparative
advantage.
• Need extensive marketing, distribution and effective sales management

strategies to make the business. Ability to generate work orders through
networking, direct marketing and negotiating long term contracts.
The Promoter is technically well-informed to undertake the proposed venture and

expected to run the business unit efficiently.
Page | 5
9.1. PROCESS DETAILS : The ingredients are pulverised in a pulveriser to

the required mesh size. The Product is mixed and meshed in a vibrating screen to
ensure correct particle size. The product is then packed in 25 Kg ordinary gunny
bags or polythene lined gunny bags.
PROCESS FLOWCHART : The process flowchart that describes the business is

shown as follows;
Step 1. CLEANING OF RAW MATERIALS
Step 2. FUMIGATION
Step 3. GRIDNING/PULVERISING
Step 4. MIXING
Step 5. MOLASSING
Step 6. PACKAGING
Step 7. STORAGE/LOADING/SUPPLY
9.2. INGREDIENTS : The project envisages adopting approved formula for

the Products with the requisite ingredients.
A) CATTLE FEED :
Ingredients (Weight %)
Maize 0.65
Soya Extraction 0.23
Calcium Powder 0.01
Meat Bone Meal 0.02
Mustard De Oiled Cake (DOC) 0.025
Oil 0.01
Salt 0.002
Methionin 0.0015
Lysine 0.0015
Di Calcium Phosphate (DCP) 0.01
Wheat and Rice Bran 0.03
Other Feed Supplements including Molasses 0.01
Total 1.00
Page | 6
B) POULTRY FEED :
Ingredients (Weight %)
Maize 0.10
Oil Seeds 0.07
Rice Bran Rice Bran 0.160
De Oiled (DORB) 0.450
Mustard De Oiled Cake (DOC) 0.150
Vit/Min/Medicines 0.07
Total 1.00
9.3. QUALITY SPECIFICATIONS: The quality of the Products should be in

compliance to the quality standards as laid down in regulations under Bureau
of Indian Standards (BIS).
9.4. POLLUTION CONTROL: It is advisable to follow the prescribed norms and

obtain consent clearance like “Consent to Establish” and “Consent to
Operate” or "No Objection Certificate (NOC)" from the State Pollution
Control Board concerned.
9.5. EFFLUENT DISPOSAL: There is no major effluent problem associated with

this project except for disposal of waste utility water/waste products. Disposal
of any effluent out of the project unit should be treated with recycling facility or
dumped in such a way that these does not cause hazard in the vicinity of the
site.
9.6. ENERGY CONSERVATION: Proper care should be taken in running the

machineries and equipment to avoid over run and high electricity
consumption. The machineries selected for the business should be most
energy efficient for economical operation. Natural ventilation in premises may
be made available to avoid use of electrical power during day hours.
10. INSTALLED AND OPERATIONAL CAPACITY :
In assessing the proposed operational capacity, due consideration has been given to
technological and financial factors, marketing considerations, availability of
consumables, infrastructure facilities and economic viability. The detailed
requirement of the machinery and equipment’s to achieve the operational capacity
has been assessed through technical feasibility aspect. While arriving at the
requirement of various type of machinery and equipment’s required for the unit, due
considerations has been given to the following points.
a) Minimum Wastage.
b) High Efficiency.
c) Maximum flexibility in operation.
d) Adequate stock by provision wherever necessary.
Page | 7
The operational capacity of the business unit per annum at 100% capacity utilisation
is as follows;
Products Capacity
Cattle Feed 500 MT
Poultry Feed 100 MT
For the purpose of carrying out this economic viability of the proposed project, it is
assumed that the Unit will operate at following efficiencies (Capacity Utilisation)
during the first 5 (Five) Years.
Year Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Capacity 50% 60% 70% 70% 70%
Utilization
11. RAW MATERIALS AND CONSUMABLES :
11.1. The raw materials required are as follows;
• Ingredients for Feed as shown in Formulation in Sl. No. 9.2 and;

• Consumables like Packaging Materials including Secondary Packaging.
Among the mentioned Raw Materials and Consumables, all are easily available
locally but it is advisable to have some firm supply arrangements beforehand to
ensure supply on regular basis.
12. POWER AND UTILITY :
12.1. POWER: The total connected load requirement of power is 9.46 KW for the
Project. The total Power supply would be distributed in the following way;
Plant & Machinery - 7.46 KW
General Lighting - 2.00 KW
12.2. UTILITY: Water would be necessary for drinking and sanitation purpose only.
Other utilities include Fuel etc. those should be locally available.
Page | 8
13. TENTATIVE IMPLEMENTATION SCHEDULE :
The period of implementation of the Business will depend on the time taken for the
sanction of financial assistance if applicable and the subsequent period of delivery
of the Machineries and Raw-material Inventory from the respective suppliers. The
delivery period of the same would be 30 days to 60 days from the date of
placement of firm order. Some of the project activities shall be carried out
concurrently. Based on the above assumptions, the major activities under the
tentative implementation schedule are as follows:
ACTIVITIES TIME PERIOD
Civil Work/Arrangement of Finance

Statutory Permits and Business Licenses 1st Month- 3rd Month
Placement of Order for Machineries,
Procurement, Inspection, Equipment Layout,
Utilities and Specifications, Expediting Services 2nd – 3rd Month
And Other Basic Information
Recruitment of Manpower 3rd Month
Training of Workers and Trial Run
Commercial Production 4th Month
Sl. Activities/Time 1st Month 2nd Month 3rd Month 4th Month
No. (In Months)
1. Selection of Site and
Acquisition of Premises
2. Civil Work/ Repairing Work,
Power Connection and
Electrification
3. Application and Arrangement of
Finance, Application and
Obtain Statutory Permits and
Business Licenses
4. Placement of Order for
Equipments and Machineries
5. Inspection, Procurement, Lay
out & Expediting Services of
Machineries &Equipments
6. Recruitment of Manpower,
Training and Trial Run of the
Unit
7. Commissioning of the Unit,
Commercial Production and
Distribution
Page | 9
14. BASIS & PRESUMPTIONS :
While deriving figures and projections in this Project Report, following Basis
and Presumptions have been made.
14.1. The project is based on a single shift basis and 300 days of working schedule
in a year, working for 8 hours a day, 25 days a month.
14.2. The project cost and other projections etc. have been made on present
market conditions and the sources available within our sources only and
therefore it may vary on account of market fluctuations and with different
suppliers and qualities.
14.3. Premises is assumed to be owned or occupied on lease hold basis.

14.4. The cost of machinery and equipment/materials indicated refer to a particular
make and the prices are approximate to these prevailing at the time of
preparation of this report.
14.5. Contingencies and Escalation has been considered on Civil Work, Plant &
Machineries and Fixed Assets to provide safeguard against escalation of
prices or any other unforeseen expenditure.
14.6. Power rate is assumed at Rs.6.00 per unit and monthly fixed rental charges.
Water would be available.
14.7. Manpower requirement for the project has been planned considering the size
of the unit. The Salaries/Wages are taken as per prevailing rates in this type
of industry.
14.8. Interest rate is considered 8.00% on Term loan and 12% on Working capital
loan for financial assistance. For repayment, a period of 5 years is planned
after moratorium period of 12 months.
14.9. Insurance charges have been considered Lump Sum.

14.10. Repair and maintenance have been calculated at reasonably.
14.11. Depreciation shown has been calculated on Straight Line Method.
14.12. Non-refundable deposits, Fees for Preparation of Detailed Project Report,

Professional Consultancy fees, Traveling & Convenience amount, Know-how
& Engineering fees, Application processing fees, trial production fees etc. are
considered under pre-operative expenses.
14.13. Break Even Point is calculated on optimum year of production.
14.14. For the Project, availability of manpower is not a problem. Skilled and
unskilled manpower can be recruited for operating the business unit. Initial
training will be required for smooth and efficient running of the unit. It is felt
that the skilled manpower available locally having some experience in
operation can be recruited to satisfy the manpower need.
14.15. Project would be set up at a premise that is well connected by road and there
will be uninterrupted supply of power and adequate availability of water
without any difficulty.
Page | 10
15. CAPITAL INVESTMENT ESTIMATES :
15.1. FIXED CAPITAL
15.1.1. LAND AND SITE DEVELOPMENT
Total Area Available: _______ Square Feet; Covered Area: _______ Square Feet
Particulars Area
Rate (Rs.) Amount (Rs.)
(Sq. Ft)
Site Development, Approach Road, Nil
-- --
Boundary etc. (Own Space/ On Lease)
Say (Rs. in Lacs) 0.00
15.1.2. BUILDING AND CIVIL WORKS
Details of Building and Civil Works are given below;
Particulars Area Rate (Rs.)

Amount (Rs.)
(Sq. Ft) Per Sq. Ft
Work Shed, Store House and Office Space
______ ______ 200000
(Repairing or Low Cost Construction)
Sub total 200000
Add: Electrification, Sanitation and Drainage @ 25% 50000
TOTAL 250000
15.1.3. PLANT AND MACHINERY
Details of Plant and Machinery are given below;
Particulars Qty Amount (Rs)

Feed Grinder 10 HP 1 335250
Conveyor 2 HP 1
Batch Prin Ribbon Blender 1 Ton capacity 1
Ghoogie Sifter completed fitted with aluminium pain sheet 1
with 1 HP Motor
Feed Mixer 7.5 HP 1
Miscellaneous Tools, Accessories and Equipments LS 45000
Sub total 380250
Add: Taxes, Transportation and Installation etc. @ 10% 38025
TOTAL 418275
Page | 11
15.1.4. MISCELLANEOUS FIXED ASSETS
Details of Miscellaneous Fixed Assets are given below;
Particulars Qty. Rate (Rs.) Amount (Rs.)

Electrical Connection and Meter -- LS 34500
Installation
Working Platforms, Storage Facility, -- LS 40000
Furniture’s and Fixtures including Fire
Fighting Equipments
Miscellaneous Items -- LS 50000
Sub total 124500

Add: Taxes, Transportation and Installation etc. @ 10% 12450
TOTAL 136950
15.1.5. CONTINGENCIES AND ESCALATION
Contingencies and Escalation has been assumed @ 5% of the Building & Civil
Works, Plant & Machinery and Miscellaneous Fixed Assets expenses.
15.1.6. PRELIMINARY AND PRE-OPERATIVE EXPENSES
Details of Preliminary & Pre-operative Expenses are given below;
Particulars Amount (Rs.)

Travelling Expenses 15000
Non Refundable Deposits (Licenses and Registrations) and 16500
Professional Fees
Interest during Implementation/Moratorium 29970
Miscellaneous expenses including Insurance 10000
TOTAL 68470
Page | 12
15.2. WORKING CAPITAL
15.2.1. RAW MATERIALS INCLUDING CONSUMABLES/ PACKAGING
Total expenses on Consumables at 100% capacity utilization are estimated as

below;
Price Per Amount

Particulars Qty. Reqd. Unit (Rs.) (Rs.)
Ingredient Raw Materials 700 MT 10000.00 7000000
Consumables like Packaging LS LS 350000
Materials etc.
Expenses on Raw Materials at 100% Capacity (Rs.) 7350000
15.2.2. MANPOWER
Total expenses on Manpower Salary in the 1st year are estimated as given below. It
is assumed that salary expenses will increase @ 0.5% every subsequent year;
Salary/ Cost/
Particulars of Employee Numbers Month Annum
(Rs.) (Rs.)
Manager 1 10000 120000
Sales Person 2 7000 168000
Skilled Workers 2 6000 144000
Semi-Skilled Workers 2 5000 120000
Unskilled Workers (On Wage Basis) 5 4000 240000
Expenses on Salary on First Year (Rs.) 792000
Page | 13
15.2.3. POWER AND UTILITY
A total expense on Power and Utility at 100% Capacity Utilization is estimated as

below;
A. Expenses on Power
Power Total
Particulars Quantity (KW) (KW)
Plant & Machinery 10 HP 7.46 7.46
General Lighting 20 Nos. 0.10 2.00
Total Power requirement/ day (Kw) 9.46
No. of hrs/ day 8

Nos. of days/annum 300
Annual Power requirement (Kwh) 22704
Rate per unit (Rs) 6
Expenses on Power (Rs) 136224
B: Estimate of Utility
Expenses on Water/Fuel/Other Utilities (Rs) 24000
Expenses on Power & Utility at 100%
Capacity (Rs.) 160224
15.2.4. REPAIR AND MAINTENANCE
A total expense on Repair and Maintenance in the First year is estimated as given
below. It is assumed that expenses on Repair & Maintenance will increase @ 2%
every subsequent year.
(Rs. in Lacs)
Particulars Cost (Rs.) Contingencies Total Rate Amount (Rs.)
Building & Civil Works 1.88 0.09 1.97 1.00% 0.02
Plant & Machinery 4.18 0.21 4.39 2.00% 0.09
Misc. Fixed Assets 1.37 0.07 1.44 1.50% 0.02
Expenses on Repair
and Maintenance on
First Year. 7.43 0.37 7.80 -- 0.13
Page | 14
15.2.5. ADMINISTRATIVE EXPENSES
Administrative Expenses has been calculated @ 1% of Annual Sales Turnover for

each year of operation which is reflected in the Projected Profitability Statement.
Sl.
Particulars
No.
Administrative Expenses has been estimated to meet the expenditures under

following heads:
1. Lease Rent (If Any)
2. Stationeries, Printing, Courier, Telephone and Consumable Stores etc.
3. Professional Fees, Taxes and Insurance
4. Travelling, Transportation and Freight
5. Publicity, Advertisement and Sale Promotion
6. Bad Debt Expenses
7. Miscellaneous Logistic and Overhead Expenses
16. COMPUTATION OF WORKING CAPITAL REQUIREMENT :
Details of Working Capital Requirement are given below.

(Rs. in Lacs)
Period Total Current Assets
(Days) Year 1 Year 2 Year 3
Raw Materials 15 1.51 1.81 2.11
Power & Utility 30 0.07 0.08 0.09
Salary 30 0.65 0.65 0.66
Finished Goods 15 1.89 2.21 2.52
Receivables 15 1.95 2.34 2.73
Total -- 6.07 7.10 8.12
Working Capital Margin on First Year (25%) 1.52
Page | 15
17. ESTIMATED COST OF THE PROJECT :
The estimated Project Cost is given below;
Particulars Amount (Rs. Lacs)

Land & Site development Own Space/ On Lease
Building & Civil Works 1.88
Plant & Machinery 4.18
Misc. Fixed Assets 1.37
Preliminary & Pre-operative Expenses 0.68
Contingencies & Escalation @ 5% 0.37
Total Capital Expenditure 8.48
Working Capital Margin @ 25% 1.52
TOTAL 10.00
Total Cost of Project: Rs. 10, 00, 000.00
(Rupees Ten Lacs Only).
18. PROPOSED MEANS OF FINANCING :
The Proposed Means of Finance for the project is estimated as below;
Particulars Percent Amount (Rs. Lacs)
DEBT
Loan from Banks/ FIs
60% 6.00
EQUITY
Own Capital including Margin Money
Subsidy from Central/ State Govt. 40% 4.00
TOTAL 100% 10.00
Total Cost of Project: Rs. 10, 00, 000.00
(Rupees Ten Lacs Only).
Page | 16
19. ESTIMATED ANNUAL SALES TURNOVER :
Total Annual Sales Turnover at 100% Capacity Utilization is estimated as below;
Average
Price Per Amount
Particulars Quantity Unit (Rs.) (Rs.)
Cattle Feed 500 MT 15000.00/- 7500000
Poultry Feed 100 MT 20000.00/- 2000000
Total Sales Per Annum at 100% -- -- 9500000.00
Capacity (Rs.)
Page | 17
20. PROJECTED PROFITABILITY STATEMENT :
(Rs. in Lacs)
Particulars Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6
A. INCOME
Sales Realisation
95.00 95.00 95.00 95.00 95.00 95.00
@ 100% Capacity
Capacity
Utilisation 50% 60% 70% 70% 70% 70%
Total Income/
Annum at
Capacity
47.50 57.00 66.50 66.50 66.50 66.50
Utilisation
B. OPERATING
EXPENSES
Raw Materials 36.75 44.10 51.45 51.45 51.45 51.45
Power & Utility 0.80 0.96 1.12 1.12 1.12 1.12
Salary (0.5%
increase every 7.92 7.96 8.00 8.04 8.08 8.12
subsequent year)
Repair &
Maintenance (2%
0.13 0.13 0.13 0.14 0.14 0.14
increase every
subsequent year)
Administrative
Expenses (1% of 0.48 0.57 0.67 0.67 0.67 0.67
Sales)
Total Operating
46.08 53.72 61.37 61.41 61.46 61.50
Expenses
Operating Profit 1.42 3.28 5.13 5.09 5.04 5.00
C. FINANCIAL
EXPENSES
Depreciation 0.48 0.48 0.48 0.48 0.48 0.48
Interest on Term
0.48 0.44 0.34 0.24 0.15 0.05
Loan
Interest on
Working Capital 0.55 0.64 0.73 0.73 0.73 0.73
Loan
Gross Profit -0.08 1.73 3.58 3.64 3.69 3.74
Taxation -- -- -- -- -- --
Net Profit -0.08 1.73 3.58 3.64 3.69 3.74
Net Cash
Accruals 0.40 2.20 4.06 4.11 4.17 4.22
Principal
0.00 1.20 1.20 1.20 1.20 1.20
Repayment
Page | 18
21. CALCULATION OF INTEREST AMOUNT :
Interest rate is considered 8.00% on Term loan and 12.00% on Working capital loan.
(Rs. in Lacs)
Particulars Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr6
Interest On Term Loan @ 8.00% 0.48 0.44 0.34 0.24 0.15 0.05
Interest on Working Capital Loan
0.55 0.64 0.73 0.73 0.73 0.73
@12%
Total Interest Expenses 1.03 1.08 1.07 0.97 0.88 0.78
22. DEPRECIATION SCHEDULE :
Depreciation has been calculated by straight line method. The details of calculation
are given below.
(Rs. in Lacs)
Amount/
Description Cost (Rs.) Contingencies Total Rate annum
(Rs.)
Building & Civil Works 1.88 0.09 1.97 3.17% 0.06
Plant & Machinery 4.18 0.21 4.39 6.33% 0.28
Misc. Fixed Assets 1.37 0.07 1.44 9.50% 0.14
TOTAL 7.43 0.37 7.80 -- 0.48
23. TERM LOAN REPAYMENT SCHEDULE :
Duration of Term Loan repayment has been considered for a period of 5 Years after
moratorium period of 12 Months with equal monthly instalments. The details of
calculation are given below.
(Rs. in Lacs)
Opening Balance 6.00 6.00 4.80 3.60 2.40 1.20
Principal Repayment Amount 0.00 1.20 1.20 1.20 1.20 1.20
Closing Balance 6.00 4.80 3.60 2.40 1.20 --
Page | 19
24. DEBT SERVICE COVERAGE RATIO :
(Rs. in Lacs)
Particulars Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Profit After Tax (Net Profit) -0.08 1.73 3.58 3.64 3.69
Depreciation 0.48 0.48 0.48 0.48 0.48
Interest 0.48 0.44 0.34 0.24 0.15
Total 0.88 2.64 4.40 4.36 4.31
Interest 0.48 0.44 0.34 0.24 0.15
Loan Repayment 0.00 1.20 1.20 1.20 1.20
Total 0.48 1.64 1.54 1.44 1.35
DSCR -- -- -- -- --
Average DSCR = 2.01:1
25. BREAK-EVEN ANALYSIS :
(Rs. in Lacs)
Particulars Yr 1 Yr 2 Yr 3
A. Net Sales (Rs. Lacs) 47.50 57.00 66.50

B. Variable Cost
Raw Materials 36.75 44.10 51.45
Power & Utility 0.80 0.96 1.12
Other Expenses 0.48 0.57 0.67
Interest on Working Capital Loan 0.55 0.64 0.73
Total Variable Cost 38.57 46.27 53.97
C. Contribution (A-B) 8.93 10.73 12.53
D. Fixed & Semi-fixed Costs
Salary 7.92 7.96 8.00
Repair & Maintenance 0.13 0.13 0.13
Interest on Term Loan 0.48 0.44 0.34
Depreciation 0.48 0.48 0.48
Total Fixed Cost 9.01 9.00 8.95
E. BREAKEVEN POINT 100.88% 83.91% 71.42%
F. BEP at Operating Capacity 50.44% 50.35% 49.99%
G. Cash BEP 47.77% 47.68% 47.33%
Page | 20
26. PROJECTED CASH FLOW STATEMENT :
(Rs. in Lacs)
Particulars Implementation
Period Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
SOURCES OF FUND
Profit after Tax with

Depreciation & Interest added
back 1.42 3.28 5.13 5.09 5.04
Increase in Promoters Capital 4.00
Increase in un-secured loan
Increase in Term Loan 6.00
Increase in Bank borrowing
(WC) 4.55 0.77 0.77
Prelim. Exp.W/off 0.07 0.07 0.07 0.07 0.07
Decrease in WIP(Inventory)
Decrease in Other Current
Assets
Sub Total 10.00 6.05 4.11 5.97 5.16 5.11
USES OF FUND
Preliminary Expenses 0.68
Capital Expenditure 7.80
Increase in WIP
Repayment of Term Loan 0.00 1.20 1.20 1.20 1.20
Decrease in unsecured loan
Interest Payment
Term Loan 0.48 0.44 0.34 0.24 0.15
Other bank(W.C) 0.55 0.64 0.73 0.73 0.73
Increase in Working Capital 6.07 1.02 1.02
Decrease in Other Current
Liabilities
Sub Total 8.48 7.10 3.30 3.29 2.17 2.08
Opening Cash/Bank Balance 0.00 1.52 0.47 1.28 3.95 6.94

Surplus/Deficit 1.52 -1.05 0.82 2.67 2.98 3.03
Closing Cash/Bank Balance 1.52 0.47 1.28 3.95 6.94 9.97
Page | 21
27. PROJECTED BALANCE SHEET :
(Rs. in Lacs)
Particulars Implementation
Period Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
LIABILITIES
Promoters Capital
Promoters capital 4.00 4.00 4.00 4.00 4.00 4.00
Profit from P&L -0.08 1.65 5.23 8.87 12.55
Sub Total 4.00 3.92 5.65 9.23 12.86 16.55
Secured Loan
Term loan 6.00 6.00 4.80 3.60 2.40 1.20
CC limit from Banks 4.55 5.32 6.09 6.09 6.09
Sub Total 6.00 10.55 10.12 9.69 8.49 7.29
Unsecured Loan
Current Liabilities
Total of Liabilities 10.00 14.47 15.77 18.92 21.35 23.84
ASSETS
Gross Fixed Block 7.80 7.80 7.80 7.80 7.80 7.80

Sub Total (a) 7.80 7.80 7.80 7.80 7.80 7.80
Depreciation
Cum. Depreciation 0.48 0.95 1.43 1.91 2.38
Sub Total (b) 0.00 0.48 0.95 1.43 1.91 2.38
Net Fixed Asset Block (a-b) 7.80 7.32 6.84 6.37 5.89 5.41
Current Asset Block
W.I.P.(Inventories)
Cash & Bank Balance 1.52 0.47 1.28 3.95 6.94 9.97
Other Current Assets 6.07 7.10 8.12 8.12 8.12
Sub-Total 1.52 6.54 8.38 12.07 15.05 18.09
Preliminary Expenses not
written off 0.68 0.62 0.55 0.48 0.41 0.34
Total of Assets 10.00 14.47 15.77 18.92 21.35 23.84
Page | 22
28. INTERNAL RATE OF RETURN :
(Rs. in Lacs)
CASH OUTFLOW
Capital Expenditure 7.80 0.00 0.00 0.00 0.00 0.00

Working Capital 0.00 6.07 1.02 1.02 0.00 0.00
Total (A) 7.80 6.07 1.02 1.02 0.00 0.00
CASH INFLOW
Profit After Tax -0.08 1.73 3.58 3.64 3.69
Add: Depreciation 0.48 0.48 0.48 0.48 0.48
Add: Interest 0.48 0.44 0.34 0.24 0.15
Add: Salvage Value
Total (B) 0.00 0.88 2.64 4.40 4.36 4.31
NET FLOW (B-A) -7.80 -5.19 1.62 3.38 4.36 4.31
IRR =20%
29. PAY BACK PERIOD :

(Rs. in Lacs)
Cumulative
YEAR Cash Outflow Cash Inflow Cash Inflow
------------------------- --------------------
00 10.00
01 ------------------------------
0.40 0.40
02 ------------------------------
2.21 2.61
03 ------------------------------
4.06 6.67
04 ------------------------------
4.12 10.79
05 ------------------------------
4.17 14.96
Hence Simple Pay Back Period = 3 Years and 10 Months (Approx.)
Page | 23
ANNEXURE- I
STATUTORY PERMITS AND BUSINESS LICENSES REQUIRED

FOR THE PROJECT
While starting a business, one needs to obtain several permissions and licenses
from different authorities. The various statutory permits/clearances and business
licenses required for compliance is mentioned below: –
❖ First of all, determine the ownership pattern/form of your business

structure. There are 6 options available namely- Sole proprietorship,
Partnership, One person company, Limited liability partnership, Private limited
company and Public limited company. Choose the most suited business
structure as per your scale of business and resources. Accordingly, register
the business.
❖ Decide a Name to the Business Farm.
❖ Contract of Lease- One might need to obtain a commercial space to conduct

his business. For this, the owner of the business has to prepare a contract of
lease with the landlord. Proceeding without entering into this contract is like
inviting legal trouble. This contract is governed by the Rent Control Act
enacted by the states. A lease contract for a commercial space is essentially
different from that for a residential house. Hence, it must contain clauses such
as:
o Base rent, deposit, maintenance charges
o Alteration of structures
o Right to sublease
o Working hours on the property
o Consequences of breach of contract
o Terms and conditions of renewal
o Code compliance
o Name and Address of both tenant and landlord
o Amount of payment
❖ Obtain Pan Card.
❖ Apply for the Trade License from the Municipal Authority/ Local Authority.
Documents required for obtaining trade license;
• Pan Card.
• A bank statement of the establishment of the trade.
• Certificate of establishment.
• Premises proof in the form of either electricity bill, water bill or sale
deed.
• Colour photograph, ID proof and Address Proof of the
owner/partners.
• Front facing photograph of the trading business with goods that are
traded in proper display.
❖ Open a Current Account with any recognised/government registered Bank.
Page | 24
❖ Obtain the GST Registration. Every business is required to pay tax and
register itself under GST, as it deals with the sale of goods. On registration,
the project will get a GSTIN, a 15 digit code which is a unique GST
identification number.
❖ Additionally, apply online for MSME Udyam Registration.
❖ Apply for the ‘Consent to Establish’ and “Consent to Operate” or "No

Objection Certificate (NOC)" from the Pollution Control Board.
❖ Apply for BIS Certification of the Bureau of Indian Standards (BIS) as is

amended from time to time pertaining to quality, safety and performance.
❖ Apply for the ‘No Objection Certificate (NOC)’ from the Local Authority/Body.
❖ Fire Safety Permit/NOC from the State Fire Department – There will be
certain types of equipment’s which may catch fire easily, therefore Fire and
Safety license is a must to ensure that the premises is compliant with all the
safety norms. This No Objection Certificate can be obtained from the local
office of the Fire department.
An important aspect of running a tension-free business is to obtain requisite licenses

that are required as per the laws of the local administration. Therefore, approach the
local competent authorities to get those permits and licenses.
XXXXXXXX
Page | 25
ANNEXURE-II
IMPORTANT STEPS TO START

THE PROJECT
Let us discuss about some of the important steps in setting up of the business.
1. Preparing a Plan of Action : Once you have decided to establish your

business unit, you will have to prepare a plan of action. You will have to decide in
advance each and every step you are going to take in that connection till it starts
functioning. It will be helpful in avoiding delay at the initial stages of starting
business. Determine need of the proposed business in your local area and how
much of these needs have already been supplied. If you realize that there is still
opportunity to fill the prevailing demand and supply gap so discovered in the
market. Make a careful study on how to go about your plans and execute them.
You can seek advice from other people who are in the same business and get
good ideas.
2. Consult with Professionals/ Experts related to the Business : It is

advisable to talk to Machinery suppliers and industry professionals before
choosing the type of operational facilities for the business. Besides, to help with
several major segments of your business plan, consult with specialist consultants.
Though fees are payable, however, their knowledge may spare you considerable
hardship. Their judgement is by no means flawless, yet they reduce the odds of
making the wrong choice. You can reduce the gaps in your knowledge,
experience and increase your chance of success by relying on other people’s
experience. The knowledge will give you a clear picture of what you need and
expect from the business.
3. Secure a Location : Location plays an important role in this business. The

ideal location for such business is one that is easily accessible to transportation
facilities, since vehicles will be required to transport finished goods. In addition,
when choosing a location for commercial purpose, one must consider the factors
related to availability of electricity and other utilities those are crucial for the day-
to-day operation of the business.
4. Register Your Business and obtain Permissions/Licenses : An important

aspect of running a business is to obtain requisite licenses that are required as
per the laws of the local administration. The list of Statutory Permits and Business
Licenses required for the business has been already discussed in the earlier
section of this Report. Therefore, approach the local competent authorities and
get those permits and licenses.
5. Purchase the Required Plant, Machineries and Equipment’s : By referring to

this Project Report only, one can get the detail information of the required plant
and machineries. One can also refer internet to learn about the same. Get the
quotes from the reputed machinery suppliers. Choosing the right machinery is an
important part of the overall performance of the business. In addition, check the
price, customer feedbacks and warranty periods. Ask the machinery supplier for
on-site training.
Page | 26
6. Hiring and Training of Employees : Hiring employees depend completely on

the size and requirements of the business. There will be requirement of machine
operators and labourers for loading/unloading work at the premises. The owner
should make sure that the machine operators are properly trained for highest level
of efficiency. The labourers should be motivated to handle work-load and cater to
the work-orders comfortably even under work-pressure.
7. Procuring Raw-material: Raw materials are an important input for maintaining

production round the year. Raw materials are primarily required in huge quantities
to successfully run a business. To maintain continuity of production, raw materials
must be available in adequate quantity and in nearby areas. On the other hand,
non-availability may result in production hold-ups, idle machine and manpower.
For essential imported raw material whose lead time are large proper planning is
all the more essential. The advice of DIC, SISI and NSIC can also be sought in
this regard. Therefore, material procurement plan should be decided in advance
for ensuring their sources of supply.
8. Target Market : Market size matters a lot. You can’t plan a strategy or make an
investment without understanding key facts about the target market. Do your
research and start by looking for options to sell your product at. Get your hands on
the available documents you can get that can help you in the business. Carefully
do this process, a type of market option you choose can determine how you would
gain.
9. Marketing : Marketing informs target customers about the products or services

the business is offering them. Through marketing, the customers get to know
about the value of the products, their usage and additional info that might be
helpful to the customers. It creates brand awareness and makes the business
stand out. There’s stiff competition in the market and one need to be a constant
voice to convince the customers. Inform your customers of discounts and other
competitive tricks you intend to use.
10. Quality Check and Control : Unwanted adulteration can creep in at various
stages of any business and can lower the quality of the end product or services.
Hence, a periodic quality check is indispensable to any business setup. All the
precautionary measures should be practiced to ensure good quality control.
XXXXXXXX
Page | 27
ANNEXURE- III
TIPS TO IDENTIFY SUITABLE PROJECT LOCATION
For any project planning process first step is the identification of Project Site on
which the physical facilities are to be built up. Selection of site for any project has
great impact on the utilization of facilities, layouts and design. While selecting the
site, care should be taken to select a site at an elevation free from inundation and
well connected by road and other communication facilities to both production and
consumption centres.
Therefore, while selecting a location for the business, the following factors should be
duly considered;
1. Approachability and Accessibility.
2. Closeness to the Raw Material/Consumables Market.
3. Proximity to the Consumers Market.
4. Adequate Power and Water supply.
5. Social Infrastructure Availability.
6. Availability of insurance facility.
7. Equipment’s Security.
8. Availability of the mode of transportation to rapidly transport the materials.
9. Favourable under soil bearing conditions and good surface drainage.
10. The favourable business environment around the site.
XXXXXXXX
Page | 28
ANIMAL FEED
PROJECT REPORT
ENCLOSURES
Schemes
MSMEs
2022-23
MSMEs are amongst the
strongest drivers of
economic development,
innovation and employment.
Shri Narayan Rane

Hon’ble Union Minister for MSME
Constant efforts are being

made towards upliftment of
MSMEs under “Self Reliant
India” through various
schemes.
Shri Bhanu Pratap Singh Verma

Hon’ble Minister of State for MSME
Table of Content
Schemes implemented by M/o MSME & its organisatons
1. Prime Minister’s Employment Generation Programme 3

(PMEGP)
2. 2nd Loan for up-gradation of the existing PMEGP/MUDRA 5

units
3. Credit Guarantee Scheme for Micro & Small Enterprises 7

(CGTMSE)
4. Micro & Small Enterprises Cluster Development Programme 9

(MSE-CDP) Scheme
5. Scheme of Fund for Regeneration of Traditional Industries 11

(SFURTI)
6. Entrepreneurship Skill Development Programme 13

(ESDP) Scheme
7. Assistance to Training Institutions (ATI) Scheme 15
8. Coir Vikas Yojana - Umbrella Scheme

1). Skill Upgradation and Mahila Coir Yojana 17
9. Procurement and Marketing Support (PMS) scheme 19
10. International Cooperation (IC) Scheme 20
11. National SC-ST Hub Scheme 23
12. A Scheme for Promotion of Innovation, Rural Industries and 25

Entrepreneurship (ASPIRE)
MSME SCHEMES 1
13. Khadi Gram Udyog Vikas Yojana - Umbrella Scheme
1). Khadi Vikas Yojana 27
(A) Modified Market Development Assistance (MMDA) 27

Scheme
(B) Interest Subsidy Eligibility Certification. 29
(C) Work-Shed Scheme for Khadi Artisans 30
2). Gramodyog Vikas Yojana 31
(A) Pottery Activity 31
(B) Beekeeping Activity 33
(C) Agarbatti Making Project 35
14. Promotion of MSME in NER and SIKKIM 37
New Schemes
15. Tool Rooms and Technical Institutions - A Component of 40

Infrastructure Development & Capacity Building scheme
16. MSME Champions Scheme 42
1). MSME Sustainable (ZED) Certification 43

2). MSME-Competitive (Lean) 46
3.1). MSME- Innovative (Incubation, IPR, Design and Digital 48
MSME)
3.2). Digital MSME 51
17. Credit Guarantee Scheme for Subordinate Debt (CGSSD) for 53

Stressed MSMEs
18. Self Reliant India (SRI) Fund 55
19. Important Contact Numbers 57
MSME SCHEMES 2
Prime Minister’s Employment
Generation Programme(PMEGP)
Objective:
• The scheme aims to provide financial assistance to set up
self-employment ventures and generate sustainable
employment opportunities in rural as well as urban areas.
• To generate sustainable and continuous employment

opportunities to rural and unemployed youth as well as
prospective traditional artisans and thereby halt
occupational migration.
• Bank-financed subsidy program for setting up new

micro-enterprise in non-farm sector.
• Margin Money subsidy on Bank Loan ranges from 15% to

35% for projects up to Rs. 50 Lakh in manufacturing and Rs.
20 Lakh in the service sector.
• For beneficiaries belonging to special categories such as

SC/ST/ Women/ Minorities/ Ex Servicemen/ Transgender/
aspirational districts/NER, the margin money subsidy is 35%
in rural areas and 25% in urban areas.
Scheme applicable for:
• Any individual, above 18 years of age can apply.
Detailed Information:
• The own contribution of the beneficiary is 10% of the project
cost in case of general category and 5% of the project cost
in case of special category (SC/ST/OBC/PH/Women/Ex
Servicemen/ NER) Beneficiaries.
MSME SCHEMES For more information and regular updates, visit: www.msme.gov.in 3
• If the application for loan is approved, Banks sanction and
release the balance amount of 90 to 95 percent of the
total project cost suitably for setting up of the units by the
beneficiaries.
• In order to have sustainability of the projects/units set up

under the scheme, support services are also provided in
the form of Backward & Forward Linkages by organizing
events like awareness camps, workshops, EDP training to
the beneficiaries, exhibitions, geo-tagging, etc.
• Government of India has introduced online process flow of

application and disbursement of Margin Money directly to
financing branches.
• One-page online application form is mandatory for

individuals on the e-portal. The application form/PMEGP
MIS portal is mobile friendly. SMS/e-mail alerts sent to the
applicant automatically by the system or by the
concerned officials at the process of each stage.
• Model Projects of different KVI activities have been put up

on PMEGP e-portal for the benefit of potential beneficiaries.
• Model Village Industries projects prepared by NSIC have

also been linked to the website.
• To increase the registration of MSMEs in the country, the

Government has undertaken measures that the PMEGP
units can adopt the Udyog Aadhar Memorandum
(UAM)/UDYAM REGISTERATION to register online.
How to apply:
• Apply on:
https://www.kviconline.gov.in/pmegpeportal/pmegphome
2nd Loan for up-gradation of the
existing PMEGP/MUDRA units
Objective:
• With an objective to assist existing units for expansion and
upgradation, the scheme provides finacial assistance to
successful/well performing units.
• The scheme also caters to the need of the entrepreneurs

for bringing new technology/ automation so as to
modernize the existing unit.
• Maximum subsidy would be 15% of the project cost (20% for

NER and Hill States). The balance amount of the total
project cost is provided by Banks as term loan.
• Existing well performing PMEGP/MUDRA units
• Further financial assistance scheme for expansion/
upgrade the existing PMEGP/MUDRA units for
manufacturing and Service/ Trading units from the year
2018-19
• The maximum cost of the project under manufacturing

sector for up-gradation is Rs.1.00 crore and Rs. 25.00 lakhs
under Service/ Trading sector.
• Maximum subsidy would be 15% of the project cost (20%)

for NER and Hill States) i.e. Rs. 15.00 lakhs in Non-NER and Rs.
20.00 Lakh for NER and Hill States. The balance amount of
the total project cost shall be provided by Banks as term
loan.
• All existing units financed under PMEGP/MUDRA Scheme
whose margin money claim has been adjusted and the
first loan availed has been repaid in stipulated time are
eligible to avail the benefits
• The units should have been making profit for the last three
years.
• Beneficiary can apply to the same financing bank, which

sanctioned the loan for their unit, or to any other financing
bank, which is willing to extend credit facility for second
loan.
• The beneficiary can choose any implementing agency and

that may be different from the agency chosen for 1st loan.
• Registration of Udyog Aadhar Memorandum (UAM)/UDYAM

REGISTRATION is mandatory.
• The 2nd loan should lead to additional employment

generation.
• To submit the application under 2nd loan for up-gradation,

the beneficiaries have to apply by filling application form
on PMEGP e-Portal.
How to apply:
• Apply on:
https://www.kviconline.gov.in/pmegpeportal/pmegphome
Credit Guarantee Scheme for Micro
& Small Enterprises(CGTMSE)
Objective:
• To encourage first generation entrepreneurs to venture
into self-employment opportunities by facilitating credit
guarantee support for collateral free / third-party guaran-
tee-free loans to the Micro and Small enterprises (MSEs),
especially in the absence of collateral.
• Credit guarantee for loans up to Rs. 2 crores, without

collateral and third-party guarantee.
• Guarantee coverage ranges from 85% (Micro Enterprise up
to Rs 5 lakhs) to 75% (others).
• 50% coverage is for retail activity.
• Existing Entrepreneurs and Aspiring Entrepreneurs.
• Any collateral/ third party guarantee free credit facility
(both fund as well as non-fund based) extended by
eligible institutions, to new as well as existing Micro and
Small Enterprises, including Service Enterprises, with a
maximum credit cap of 200 lakhs (Rupees Two Hundred
lakh only) are eligible for guarantee under the scheme.
Recently, guarantee coverage made eligible to select
NBFCs and Small Finance banks.
• The guarantee cover available under the scheme is to the

extent of 50%/ 75% / 80% & 85% of the sanctioned amount
of the credit facility. The extent of guarantee cover is 85%
for micro enterprises for credit up to 5 Lakhs. The extent of
guarantee cover is 50% of the sanctioned amount of the
credit facility for credit from 10 lakhs to 100 Lakhs per MSE
borrower for retail trade activity.
• The extent of guarantee cover is 80% for (i) Micro and

Small Enterprises operated and/or owned by women; and
(ii) all credits/loans in the North East Region (NER) for credit
facilities up to 50 Lakhs. In case of default, the trust settles
the claim up to 75% of the amount in default of the credit
facility extended by the lending institution for credit
facilities up to 200 Lakhs.
How to apply:
• Through Member Lending Institutions (Banks and NBFCs)
Micro & Small Enterprises Cluster
Development Programme(MSE-CDP)
Scheme
Objective:
• To support the sustainability and growth of MSEs by
addressing common issues such as improvement of
technology, skills & amp; quality, market access, etc.
• To create/upgrade infrastructural facilities in the new/

existing Industrial Areas/Clusters of MSEs.
• To set up Common Facility Centres (for testing, training,
raw material depot, effluent treatment, complementing
production processes, etc).
• Promotion of green & sustainable manufacturing

technology for the clusters.
• Creation of Common Facility Centers including Plug & Play

Facilities.
• Support for Infrastructure Development Projects including
Flatted Factory Complexes.
• Existing Entrepreneurs (in form of a SPV).
• COMMON FACILITY CENTRES: Creation of “tangible assets”
such as Common Production / Processing Centre, Design
Centers, Testing Facilities including Plug & Play Facilities.
GoI Assistance: up to 80% of the maximum Project cost of
Rs. 30 crores.
• INFRASTRUCTURE DEVELOPMENT: Development of land,
roads, drainage, power distribution etc. in new/existing
industrial (multi-product) areas/estates/Flatted Factory
Complex. GoI Assistance: up to 70% of the maximum
Project cost of Rs. 15 crores.
How to apply:
• Apply on:
https://cluster.dcmsme.gov.in
Scheme of Fund for Regeneration of
Traditional Industries(SFURTI)
Objective:
• To organize traditional industries and artisans into
collectives by increasing production and value addition
to make products competitive.
• To promote traditional sectors and increase income of
artisans providing sustainable employment.
• Financial support:
• Upto Rs. 2.5 cr for upto 500 artisans.
• Rs. 5 cr for more than 500 artisans.
• A production facility is set up with modern machineries.

• Raw material support.
• Soft Interventions – upto Rs. 25 lakhs
• Skill Development
• Exposure Visits
• Buyer Seller Meets
• Marketing – business development.

• Digitization support.
• Existing artisans from traditional industries, Cluster of

Artisans in sectors such as Handicraft, Textile, Agro-Pro-
cessing, Bamboo, Honey, Coir, Khadi etc.
• Assistance and support to traditional industry artisans to
provide them sustainable employment through Hard
Intervention in setting up physical infrastructure with CFCs,
raw material banks, latest machineries. Soft Intervention in
skill development, market promotion initiatives, etc. in
clusters.
• Financial assistance of up to 90% (95% in NER, J&K and Hill

Areas) of Hard Intervention cost and entire cost of Soft
Intervention.
How to apply:
• Apply on:
https://sfurti.msme.gov.in/SFURTI/Home.aspx
Entrepreneurship and Skill Development
Programme(ESDP) Scheme
Objective:
• To promote new enterprises, capacity building of existing
MSMEs and inculcating entrepreneurial culture in the
country.
• Widen the base of entrepreneurship by development,

achievement, motivation and entrepreneurial skill to the
different sections of the society.
• Aspiring and Existing Entrepreneurs.
• Entrepreneurship/ Self-employment awareness and
motivation to different sections of the society including SC/
ST/ Women, differently abled, Ex-servicemen and BPL
persons as career options.
• Entrepreneurship & Skill Training in Agro Based Products,

Hosiery, Food & Fruit Processing Industries, Carpet Weaving,
Mechanical Engineering Workshop/ Machine Shop, Heat
Treatment, Electroplating, Basic/Advance Welding/
Fabrication/Sheet metal work, Basic/ Advance Carpentry,
Glass & Ceramics etc.
• Management capacity building Training to Existing
Entrepreneurs and their supervisory staff in Industrial
Management, Human Resource Management, Marketing
Management, Export Management/Documentation &
Procedures, Materials Management, Financial/Working
Capital Management, Information Technology, Digital
Marketing, Quality Management/QMS/ISO 9000/EMS, WTO,
IPR, Supply Chain Management, Retail Management,
Logistics Management etc.
How to apply:
• To be apply through MSME-DI, MSME-TC websites.
The scheme link -
http://dcmsme.gov.in/Enterprise&skillDevelopment.htm
Assistance to Training Institutions
(ATI) Scheme
Objective:
• To create and strengthen infrastructure and assistance for
entrepreneurship and skill development training
programmes.
• Support for infrastructure and capacity building of training

institutions of Ministry of MSME and existing State level EDIs.
• Support for skill development programmes by training
institutions of the Ministry of MSME.
• Only for training institutions of Ministry of MSME and State

level EDIs.
• The regular/short term training offered under the scheme

are stipendiary.
• Assistance may be provided for creation or strengthening/
expansion of infrastructure, including opening of new
branches/centres to training institutions of Ministry of MSME
and for meeting revenue deficit, if any, of National Institute
for Micro, Small and Medium Enterprises (NIMSME).
• The maximum assistance under the scheme to a State level
EDI will be restricted to Rs.300 lakh in each case. This grant
would be utilized for development of physical infrastructure,
equipment, faculty training and development of capability
in undertaking studies and research on issues related to
MSME sector. This grant would be over and above the
grant, if any, received by that institution earlier under the
ATI scheme.
• For the purpose of grant under this category, an EDI owned

and controlled by a State Government/UT would be
selected as recommended by the State Government/UT.
• For detailed guidelines visit: https://msme.gov.in/
How to apply:
• Training institutions of the Ministry of MSME and State level
EDIs may send their applications to the Director/Deputy
Secretary (EDI), Ministry of MSME.
Coir Vikas Yojana - Umbrella
Scheme
1) - Skill Upgradation and Mahila Coir Yojana
Objective:
• Impart training in processing of coir and value addition to
potential workers, coir artisans/entrepreneurs through
field training centres and training institution of Coir Board.
• Provide self-employment opportunities to rural artisans
including women artisans in regions processing coconut
husk.
• Training to personnel in the cadres of supervisors/

instructors/artisans in coir industry.
• EDPs/Workshops/Seminars/Awareness programmes on
development of coir industry.
• Conducting Exposure tours to the rural artisans for

familiarizing with the newly incorporated technologies in
the coir sector.
• Existing and Aspiring Entrepreneurs.
• The regular/short-term training offered under the scheme,
are stipendiary.
• Any individual can avail of the technologies available with
Coir Board by paying a nominal fee including training/
incubation /handholding support/assistance for setting up
new units from R&D Institutes of the Board.
How to apply:
• Apply on:
http://coirboard.gov.in/
• The Officer-in-charge of the Training Institutes of the board

will handle selection of trainees for the regular training
programs conducted by the board. Trade associations,
unit owners, NGOs, Co-operatives and industries
department will sponsor such candidates and recommend
them for training.
Procurement and Marketing
Support (PMS) Scheme
Objective:
• The scheme aims to promote new market access
initiatives like organizing / participation in National /
International Trade Fairs / Exhibitions / MSME Expo, etc.
held across the country and to create awareness and
educate the MSMEs about the importance / methods/
process of packaging in marketing, latest packaging
technology, import-export policy and procedure, GeM
portal, MSME Conclave, latest developments in
international / national trade and other subjects / topics
relevant for market access developments.
The scheme components include the following:

Market Access Initiatives across the country
• Participation of Individual MSEs in Trade Fairs / Exhibitions.
• Organizing Domestic/ International Trade Fairs/Exhibition

and participation in trade fairs/exhibitions by the
Ministry/Office of DC (MSME)/Government organizations.
• Vendor Development Program (VDP).
Capacity Building
• Adoption of Modern Packaging Techniques;

• Adoption of Bar Code;
• Adoption of e-Commerce Platform;
• National Workshops / Seminars;
• Organizing National workshops/seminars by the Ministry /
Office of DC (MSME) (Conventional/Virtual).
Development of Retail Outlet
*The detailed guidelines of the scheme components as

per the new approved SFC are under process and will be
soon available on public domain.
International Cooperation (IC)
Scheme
Objective:
• The scheme aims to Capacity build MSMEs for entering
export market by facilitating their participation in
international exhibitions/fairs/conferences/seminar/
buyer-seller meets abroad as well as providing them with
actionable market-intelligence and reimbursement of
various costs involved in export of goods and services. The
Scheme provides opportunities to MSMEs to continuously
update themselves to meet the challenges emerging out
of changes in technology, changes in demand,
emergence of new markets, etc.
The Scheme would cover the following sub-components:
• Sub-Component I: Market Development Assistance of

MSMEs (MDA).
• Sub-Component II: Capacity Building of First Time MSE
Exporters (CBFTE).
• Sub-Component III: Framework for International Market

Intelligence Dissemination (IMID).
As on date only Sub-Component–I is operational from 19th

August, 2021 and other two Sub-Components to be launched
very soon.
Under Sub-Component-I eligible Organisations are:
• Ministry of MSME and organizations under the Ministry;

• State/Central Government Organisations/Institutions; and
Registered Industry/Enterprise Associations etc.
Activities covered under Sub-Component-I
Participation of MSME delegations in international

exhibitions, trade fairs and buyer- seller meets in foreign
countries (PHYSICAL MODE).
• Space Rent (Stall Charges): Upto Rs. 3.00 lakhs per MSME.
• Air Fare: Upto Rs. 1.50 lakh per MSME
• Duty allowance: USD 150 per day for Office Bearer
• Freight charges: Upto Rs. 50,000/- per MSME unit and
Rs. 75,000/- per MSME for Latin American Countries.
• Advertisement and publicity charges: Upto Rs. 5.00 lakhs
• Registration fee: Upto Rs. 5,000/-
Participation of MSME delegations in international

exhibitions, trade fairs and buyer-seller meet by Foreign
Organisers(VIRTUAL MODE).
• Space/Stall Charges including catalogue/digital material

charges for Participating in the Virtual International Events
organized by foreign countries: Up to Rs. 1.5 lakhs.
• Advertisement and Publicity Charges: Upto Rs. 5.00 lakhs.
Organizing International conferences/summits/

workshops/seminars on the themes relevant to MSME
sector (PHYSICAL MODE) to be organized in India by the
Industry Associations/ Government Organizations.
• Charges for holding/organizing the International

conferences/summits/workshops/seminars in India by
Industry Associations including charges for venue rent,
catering, advertisement & publicity, security arrangement,
etc. : Upto Rs. 10.00 lakhs.
• Economy class Airfare for foreign speakers/experts/
resource persons: Upto Rs. 5.00 lakhs.
Organising International conferences/ summits/

workshops/ seminars on the themes relevant to MSME
sector (VIRTUAL MODE) to be organized by Industry
Associations/ Government Organizations.
• Virtual Space/Platform/License Fee/Rent for Organising
Conferences/summits/workshops/seminars : Upto Rs. 2.00
lakhs.
• Publicity Cost incurred on promotion / marketing/ publicity

of the event: Upto Rs. 5.00 lakhs.
• Translation and Interpretation charges involved in the
virtual event: Upto Rs. 1.00 lakhs.
Organising Mega international conferences/summits/

workshops/seminars, bilateral/multilateral Government
to Government Events in India (PHYSICAL/Virtual MODE)
by Ministry of MSME, its organizations solely or in
partnership with industry associations for promotion of
MSME sector.
For more detailed information refer to Scheme guidelines, on the

following link:
https://msme.gov.in/sites/default/files/RevisedICScheme2021.PDF
How to apply:
• Apply on:
http://ic.msme.gov.in
National SC-ST Hub Scheme
Objective:
• To provide professional support to Scheduled Caste and
Scheduled Tribe Entrepreneurs to fulfill the obligations
under the Central Government Public Procurement Policy
for Micro and Small Enterprises Order 2012, adopt
applicable business practices and leverage the Stand-Up
India initiatives.
• 25% subsidy on purchase of plant & machinery/equipments.

• Marketing and mentoring support through participation in
exhibitions and vendor development programmes.
• Reimbursement of transaction costs.
• Collection, collation and dissemination of information
regarding SC/ST enterprises and entrepreneurs to CPSEs.
• Free skill trainings and distribution of trade specific tool kits
to trained candidates of the Skill Development programmes.
• Aspiring and Existing SC/ST Entrepreneurs.
The National SC-ST Hub (NSSH) has been set up to provide
professional support to Scheduled Caste and Scheduled Tribe
Entrepreneurs to fulfill the obligations under the Central
Government Public Procurement Policy for Micro and Small
Enterprises Order 2012, adopt applicable business practices
and leverage the Stand-Up India initiative. The key action
areas of NSSH include vendor development, participation in
public procurement, building reliable database, mentoring
and handholding support, credit facilitation, capacity building,
private affirmative action, technology upgradation, marketing
support, and special subsidies under various schemes. The
NSSH works on the mentioned priority areas through various
sub-schemes which are as follows:
• Special Credit Linked Capital Subsidy Scheme.
• Special Marketing Assistance Scheme.
• Single Point Registration Scheme.
• Bank Loan Processing Reimbursement Scheme.
• Bank Guarantee Charges Reimbursement Scheme.
• Testing Fee Reimbursement Scheme.
• Export Promotion Council Membership Reimbursement

Scheme.
• Top 50 NIRF Rated Management Institution’s Short-Term
Training Program Fee Reimbursement Scheme.
How to apply:
• Apply on:
https://www.scsthub.in/
A Scheme for Promotion of Innovation, Rural
Industries and Entrepreneurship(ASPIRE)
Objective:
• To set up a network of Livelihood Business Incubation
centres predominantly in the rural and underserved areas,
to promote innovation and accelerate entrepreneurship
by empowering the beneficiaries in creation of formal
micro-enterprises and imparting skill development
programs for creating wage/self-employment opportuni-
ties in the agro rural sector.
• Maximum of INR 1 cr to Government agencies & INR 75 Lakhs

to Private agencies for procuring plant and machinery.
• Maximum of INR 1 cr to Government and Private agencies
as operational expenditure support towards manpower
cost, running incubation and skill development programs
e.t.c.
• Any agency/institution of Government of India/ State

government or existing training centres under
Ministries/Departments of Government of India/State
Government, Industry Associations, Academic Institutions.
• Any not-for-profit private institutions with experience in

successfully executing incubation and/or skill development
programs may be eligible to set up an LBI.
• Livelihood Business Incubator (LBI): is an entity set up for
imparting skill development & incubation programmes for
promoting entrepreneurship and employment generation
in agro-rural sector with special focus on rural and
underserved areas.
• Objectives of LBI:
• To generate employment opportunities by facilitating
formal, scalable micro-enterprise creation in the
agro-rural sector.
• To skill, up-skill, re-skill unemployed, existing
self-employed/ wage earners in new technologies in the
agro-rural sector.
• To provide skilled human capital to nearby industrial
clusters and promote innovations for strengthening the
competitiveness in the MSME sector.
How to apply:
• Apply On:
https://aspire.msme.gov.in/ASPIRE/AFHome.aspx
KHADI GRAM UDYOG VIKAS
YOJANA - Umbrella Scheme
1) - KHADI VIKAS YOJANA
(A) - Modified Market Development Assistance

(MMDA) Scheme
Initially, the Government of India introduced the scheme of Market

Development Assistance (MDA) on production in place of rebate,
after experimenting with several pilot schemes. The scheme has
been given effect from 1st April, 2010 to help Khadi Institutions to
reorient their activities extending adequate emphasis towards
increasing artisans' earnings as well as ensuring quality of Khadi to
customers. The scheme of MDA on Production aims at uniform
distribution of sales throughout the year unlike the erstwhile rebate
scheme where most of the sale took place during the special rebate
season of 108 days. A well-dispersed sale spread over the year is
helping Khadi Institutions to keep inventory levels down, thereby
offering greater scope for mobilization of required working capital.
Further, the Govt. of India has introduced the Modified Market

Development Assistance (MMDA) scheme w.e.f., 3rd Quarter of
2016-17 under which 30% is provided as grant on Prime Cost of
Khadi&Polyvastra. MMDA Scheme aims at decontrolling and
de-linking the sales price from the Cost Chart thus offering scope to
the Institutions to add value to Khadi; so that the products can be
sold at market oriented prices.
The MMDA is calculated @ 30% on Prime Cost of Khadi&Polyvastra

includes cost of raw material plus conversion charges upto grey
cloth plus processing charges without margins, as specified in the
Cost Chart. Khadi Institutions undertaking production as well as
sales activity shall be entitled for 60% of MMDA (40% for production
and 20% for sales), the remaining 30% shall be distributed to
Spinners & Weavers and 10% to Karyakartas / other Artisans.
• To help Khadi Institutions to reorient their activities
extending adequate emphasis towards increasing artisans'
earnings as well as ensuring quality of Khadi to customers.
How to apply:
• Apply on:
http://www.kviconline.gov.in/kieportal/jsp/index.jsp
(B) - Interest Subsidy Eligibility Certification
Objective:
• To provide funding for khadi programme undertaken by
khadi institutions by mobilizing funds from banking
institutions for filling the gap between the actual fund
requirements and availability of funds from budgetary
sources.
• Credit at the concessional rate of interest is made

available as per the requirement of the Khadi Institutions
(KI) to mobilize additional requirements of fund from the
Financial Institutions/Banks.
• The KI is required to pay only 4% interest rate. The

difference between the actual Interest charged by the
Bank and 4% is borne by the KVIC as “Interest Subsidy”.
• All Khadi Institutions registered with the KVIC or State

Khadi and Village Industries Boards (KVIBs) can avail of
financing.
• To extend the financial assistance to the needy eligible
Khadi institutions for development of Khadi and Polyvastra
Programme.
• To ensure adequate working fund to Khadi Institutions.
• To ensure liquidity to Khadi Institutions by taping banking

resource.
How to apply:
• Apply on:
http://www.kviconline.gov.in/kieportal/jsp/index.jsp
(C) - Work-Shed Scheme for Khadi Artisans
Objective:
• To facilitate and empower khadi spinners and weavers to
chart out a sustainable path for growth, income
generation and better work environment.
• To provide better ambience by providing a better

workplace to artisans to enable them to carry out their
spinning and weaving work efficiently.
• To provide more storing and working space for housing

slivers, raw material, implements etc.
• To help in improving the efficiency and thereby the

production, productivity of spinners, weavers and also to
increase their earnings.
• Khadi/polyvastra producing Institutions and Khadi

Artisans.
• Financial assistance is provided to those Khadi artisans
who belong to BPL category. In the states where BPL card
is being issued, they should be covered under the
scheme. Where BPL cards are not being issued at present,
identification of poor artisans may be made in a transparent
and open process. The benefits of the scheme would be
made available to only those artisans who work for at least
100 days in a year.
How to apply:
• Apply on:
http://www.kvic.gov.in/kvicres/index.php
2) - GRAMODYOG VIKAS YOJANA SCHEME
(A) - Pottery Activity
Objective:
• To increase the production, technical knowhow of pottery
artisans and to reduce the cost of production.
• To enhance the income of pottery artisans by providing

skil development training and modern and automated
equipment.
• To provide skill-development training to SHGs of

pottery-artisans on focused products like garden pots,
khullad, decorator products etc.
• To encourage the successful potter to set up his own unit

under PMEGP scheme.
• To develop necessary market linkages by tying up with

exports and large buying houses.
• To innovate various new products and raw materials to

make international scale pottery.
Type of Assistance:
• Wheel Pottery Training Program for traditional pottery

artisans.
• Press Pottery training program for pottery as well as
non-pottery artisans.
• Jigger-Jolly training program for pottery as well as
non-pottery artisans.
• Trainer’s training program for skilled traditional pottery
artisans who want to work as master trainers.
• Assistance by providing pottery wheel, Clay Blunger,
Granulator etc.
Who can apply:
• The artisans between 18 years and up to 55 years of age.
• Preference to be given to the people trained in the related

activity, people pursuing the same activity earlier, based
on their education, profile & minimum of 50% to SCs/STs /
Women candidates/BPL category.
• Non-pottery artisan who is interested to start new industry

can be selected for training of press pottery and
jigger-jolly etc.
How to apply:
• By responding to the advertisements to be given by the
State /Divisional Directors of KVIC locally through print and
electronic media by inviting applications from prospective
beneficiaries/ SHGs to receive training/ machines etc.
WHOM TO CONTACT
• State Director, Khadi and Village Industries Commission.

Address is available at http://www.kviconline.gov.in
(B) - Beekeeping Activity
Objective:
• To adopt scientific bee management practices.
• To utilize available natural resources in beekeeping.
• To create sustainable employments for the beekeepers/
farmers.
• To provide supplementary income for the beekeepers/
farmers.
• To create awareness about Honey and other Hive Products
and benefits of beekeeping in cross pollination.
Type of Assistance:
• 5 days beekeeping training is provided to the beneficiary

through various training centers / State Beekeeping
Extension Centers / Masters’ Trainer as per prescribed
syllabus.
• Assistance with Bee boxes, Tool kits etc.
Who can apply:

• Persons in the age group between 18 years to 55 years.
• One person from one family will be eligible for 10 bee

boxes, with bee colonies and tools kit (Bee veil, smoker,
Knife and hive tool).
• Persons already trained in beekeeping by KVIC/KVIB /

NABARD/ KVK(s)/ Agriculture - Horticulture Boards /
Eligible Beekeeping NGO(s), etc. eligible to get the support
of bee boxes with bee colonies and tool kit.
• Persons who have availed benefits from other Govt.

Schemes for the same/similar purpose will not be eligible;
the beneficiary shall give declaration to this effect.
How to apply:

State/Divisional Directors of KVIC locally through print &
electronic media inviting applications along with project
proposals from prospective beneficiaries/SHGs etc.
WHOM TO CONTACT

2) - AGARBATTI MAKING PROJECT
Objective:
• To revive Agarbatti industry in the country and increase

indigenous production of Agarbatti to reduce imports.
• To impart training to the artisans working in the Agarbatti

sector and assist them with Agarbatti manufacturing
machines, raw material for manufacturing Agarbatti, etc.
• To create sustainable employment for the traditional

Artisans and increase their wages.
• To develop backward and forward linkages and hand

holding support to the artisans, SHGs etc.
Type of Assistance:
• 10 days’ Agarbatti skill upgradation free training (20

candidates per batch) by experts in Agarbatti industry.
• Assistance with Agarbatti manufacturing machines, raw
material for manufacturing Agarbatti.
Who can apply:

• Artisans in the age group of 18 years to 55 years having
Aadhar Card / Voters’ ID with photographs and Ration
Cards, etc.
• One person from one family for pedal operated and two
persons from one family for groups activity (SHGs) for
automatic Agarbatti machine.
• For SHGs or Groups, all the members will be trained.
• Persons already trained in Agarbatti making by KVIC/KVIB /

NABARD/ KVK(s) / Training centers recognized by State or
Central Govt. or Bank/Eligible NGO(s), etc.
• Preference to be given to the artisans working with KVIC

institutions for production of Agarbatti.
• Persons who have availed benefits from other Govt.
Schemes for the same/similar purpose will not be eligible;
the beneficiary to give declaration to this effect.
How to apply:
State /Divisional Directors of KVIC locally through print and
electronic media by inviting applications from prospective
beneficiaries/ SHGs to receive training/ machines etc.
WHOM TO CONTACT

Promotion of MSMEs in -
NER & Sikkim
Objective:
• The scheme envisaged for providing financial support
mainly for augmenting Infrastructure development for
enhancing the productivity, sustainability, competitiveness
and growth by addressing common issues such as
improvement of technology, skills & quality, market access
etc. of Micro, Small and Medium Enterprises (MSMEs).
• Creation of common facilities to supplement
manufacturing, testing, packaging, R&D, product and
process innovations and training for natural resources
such as fruits, spices, agri, forestry, sericulture and bamboo
etc. available in NER and Sikkim.
• To create/upgrade infrastructural facilities in the
new/existing Industrial Areas for MSMEs.
• Development of tourism sector in NER and Sikkim by

creation of common services such as kitchen, bakery,
laundry & dry cleaning, refrigeration and cold storage, IT
infra, potable water, display centre for local products,
centre for cultural activities etc. in a cluster of home stays.
Key Benefit:
• Common facilities for MSMEs to develop new products &

processes including toolings.
• Developed infrastructure for entrepreneurs for establishing
new units or expanding their units.
• Support for creation of common infrastructures to boost
tourism in NER & Sikkim.
Nature of Assistance:
• Setting up of new and modernization of existing Mini

Technology Centers: The financial assistance of
Government of India will be 90%. The maximum project
cost for calculation of GoI assistance shall be Rs. 15.00
Crore. The GoI assistance towards the buildings cost for
up-gradation of infrastructure would be limited to 1.00
crore within the total permissible GoI assistance.
Government of India financial assistance would not be
admissible towards the cost of land.
• Development of new and existing Industrial Estates: The

financial assistance of Government of India will be 90%.
The maximum project cost for calculation of GoI
assistance shall be Rs. 15.00 Crore for development of New
industrial estate whereas Rs. 10.00 crore for development
of existing Industrial Estate.
• Development of Tourism Sector: The financial assistance

of Government of India will be 90% for projects with
maximum project cost Rs. 5.00 crores for calculation of GoI
assistance. The balance project cost if any have to be
borne by the State Govt.
Eligibility/ Applicability:
• State Government or any State Govt. organization

engaged in promotion of MSMEs.
How to apply:
• The State Government, desirous of availing financial

assistance under the scheme would formulate a proposal
and identify an agency preferably Department of
Industries & Commerce or any State Govt. organization
engaged in promotion of MSMEs to implement the project.
In case, any assistance is needed at this stage, they may
approach office of Development Commissioner (MSME),
New Delhi.
Contact:
• MSME- Development Institutes under office of the

Development Commissioner MSME, Website :
http://dcmsme.gov.in
NEW
SCHEMES
39
Tool Rooms and Technical Institutions - A Component
of Infrastructure Development & Capacity Building
Objective:
• Tool Room & Technical Institutions are concentrated on an
integrated Development of the relevant sector of industries
to help MSME. Total 18 MSME Tool Rooms & Technical
institutions established PAN India serving in the relevant
sector like General Engineering, foundry & forging,
electronics, fragrance, glass, sports good and footwear etc.
Key Benefit:
• To improve access of MSMEs to tooling facilities for

enhancement of their efficiency and providing industry
ready manpower by conducting training programme.
• Process and Product development in relevant sector.
• Consultancy and job works in relevant sector.
Who can apply:
• Industrial Units (focusing on MSME sector).
• The intake eligibility for the training programmes from

school dropout to M. tech level.
• 18 Tool Room & Technical Institutions (TRs &TIs) under O/o
DC (MSME), Ministry of MSME are concentrating on an
integrated development of the related segments of
industries by way of providing quality tools, trained
personnel and consultancy in tooling and related areas,
specific product groups like Foundry & Forging, Electrical ,
Electronics, Fragrance & Flavour, Glass, Sport Goods, and
footwear etc. The Ministry has been investing periodically to
upgrade the TRs & TIs by introducing new technologies
such as 3D Printing, Glass Machining, CAD/ CAM, CNC
machining for tooling, vacuum heat treatment, Robotics
and Process Automation etc.
• TRs & TIs are conducting various training Programme

includes NSQF Compliance Courses, AICTE/NCVT/SCVT
approved courses and variety of training courses as per
needs of industry to provide them industry ready
manpower & create Entrepreneurship. TRs & TIs have also
developed special training programmes to meet the
requirements at international level. Technology Centres
are conducting training programmes for international
participants sponsored under various agreements like
Technical Co-operation Scheme of Colombo (TCS),
Special Commonwealth African Assistant Programme
(SCAAP), Indian Technical and Economic Co-operation
(ITEC), Aid to Sri Lanka etc.
• In addition, these institutes provide technical services such

as design of parts and components, materials testing, heat
treatment, quality control, and technical consultancy
related to the product & process improvement. TRs &
TIs apart from extending design, development &
manufacturing support to MSMEs for complex tools, parts
and components (many that serve as import substitutes)
have also supported the strategic sectors such as
aerospace, defence, atomic energy etc. of the country for
their R&D requirements.
• All the TRs & TIs adhere to the principles of Total Quality
Management (TQM). They are ISO 9001-2000 certified
institutions and a few of them are ISO-14000, OHSAS-18000,
ISO-29990 and ISO-50001 certified. Central Tool Room &
Training Centre, Bhubaneswar is also AS-9100 certified for
Aero-space Component Supply.
How to apply:
• Online application can be filled at http://dcmsme.gov.in/

CLCS_TUS_Scheme/Tool_Room_Tech_Institutions/Sche
me_ Guidelines.aspx or different concerned Tool Room &
Technical institutions website
MSME Champions Scheme
(Yet to be launched)
Brief of the scheme:
Ministry of MSME has been implementing Credit Linked Capital Subsidy and
Technology Upgradation Scheme (CLCS-TUS) for promoting
competitiveness amongst Micro, Small and Medium Enterprises (MSMEs) by
the way of wastage reduction through Lean Manufacturing, support for
Design improvement, building awareness on Intellectual Property Rights,
Zero Defect Zero Effect (ZED) Scheme, digitally empowerment of MSME
through Digital MSME and to promote & support untapped creativity of
individual and to promote adoption of latest technologies in manufacturing
as well as knowledge based innovation MSMEs through Incubation across
India.
MSME Champions scheme has been formulated through Standing Finance

Committee (SFC) by merging all 6 components of erstwhile Technology
Upgradation Scheme (TUS) for a period of 5years i.e. 2021-22 to 2025-26. It
is a Holistic Approach to unify, synergize and converge various schemes and
Interventions with a single purpose. 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. There are 3 components under the new MSME Champions
scheme, the details of which are as below:
1) - MSME-Sustainable (ZED)
2) - MSME-Competitive (Lean)
3) - MSME-Innovative(for Incubation, IPR, Design and Digital MSME)
The Digital MSME will be interlinked with all the other components of
the MSME Champions Scheme.
1) - MSME SUSTAINABLE (ZED) CERTIFICATION
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.
• Develop an Ecosystem for ZED Manufacturing in MSMEs, for
enhancing competitiveness and enabling exports.
• Promote adoption of ZED practices and recognising the
efforts of successful MSMEs.
• Encourage MSMEs to achieve higher ZED Certification
levels through graded incentives.
• Increase public awareness on demanding Zero Defect and
Zero Effect products through the MSME Sustainable (ZED)
Certification.
• Identify areas to improve upon, thereby assisting the
Government in policy decisions and investment
prioritization.
• Cost of Certification
• Certification Level 1: BRONZE: Rs. 10,000/-
• Certification Level 2: SILVER: Rs. 40,000/-
• Certification Level 3: GOLD: Rs. 90,000/-
• Subsidy on cost of ZED certification:

• Joining Reward of Rs. 10,000/- (Bronze will become free
if availed)
• 80-60-50% for Micro, Small & Medium Enterprises
• Additional subsidy:
• 10% for Women/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 of Testing/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.
• MSME KAWACH (Knowledge Acquisition through WASH

for an Accelerated COVID-19 Handling) Certification:
After taking ZED Pledge, MSMEs can avail support for their
preparedness to mitigate COVID 19 risks after obtaining
Certification based on WASH Standard.
• Graded incentives: MSMEs can avail graded incentives as

prescribed for the three ZED Certification Levels. Wherever
possible, the incentives provided by States will be linked
through API integration with the ZED portal to ensure
interoperability.
• All MSMEs registered with the UDYAM registration portal

(of the MoMSME) will be eligible to participate in MSME
Sustainable (ZED) Certification and avail related
benefits/incentives.
• MSME Sustainable (ZED) Certification is an extensive drive to
create awareness amongst MSMEs about Zero Defect Zero
Effect (ZED) practices and motivate and incentivize them for
ZED Certification while also encouraging them to become
MSME Champions. Through the journey of ZED Certification,
MSMEs can reduce wastages substantially, increase
productivity, enhance environmental consciousness, save
energy, optimally use natural resources, expand their
markets, etc. MSMEs will also be motivated to adopt best
practices in work culture, standardization of products,
processes and systems etc. in order to enhance their global
competitiveness and sustainability. The ZED Certification
aims at enhancing the competitiveness of an MSME by
assessment, modification through guidance, handholding,
managerial and technological intervention – not just
certification.
How to apply:
• Eligible MSMEs shall apply through online portal
www.zed.msme.gov.in
2) - MSME-COMPETITIVE (LEAN)
Objective:
• Ministry of Micro, Small & Medium Enterprises, Government

of India, aims to implement the MSME Competitive (LEAN)
Scheme [MCLS] for MSMEs with an objective to enhance
their productivity, efficiency and competitiveness by
reduction of wastages in processes, inventory management,
space management, energy consumption, etc.
• Cost of Implementation: Basic-Free; Intermediate-

Rs. 1,20,000/-; Advance- Rs. 2,40,000/-
• Financial Assistance to group of MSME Units for

adoption of Lean tools/techniques.
• Subsidy on cost of Implementation: 90% of Total Cost

of Implementation.

(of the MoMSME) will be eligible to participate in MSME
Competitive (Lean).
• MSME Competitive (LEAN) Scheme [MCLS] is an extensive
drive on the part of Ministry of Micro, Small and Medium
Enterprises for enhancing the competitiveness of MSME
Sectors through implementation of Lean Tools and
Techniques. Lean Tools and Techniques are a tested and
proven methodology for improving the competitiveness of
MSME sector. MCLScan be implemented by MSME units in
three levels:
• Basic Level
• Intermediate Level
• Advance Level
• Basic Level Certification – 2 months
This will be achieved through Self-paced learning with the
help of online Module Developed for the same (Hosted on
dedicated MCLS portal). An option of online technical
support to MSME that can be taken by the Units, in case of
clarification of doubts in the online module.
• Intermediate Level and Advance Level Certifications

This will be achieved through Self- paced learning with the
help of online Module Developed for the same on the
dedicated MCLS portal. Implementation of Lean tools and
techniques through onsite handholding by the designated
consultant appointed to Group of Enterprises (GoE). During
the Advance Stage units forming a GoE may choose to
continue with same consultant or may appoint a new
consultant.
How to apply:
• Eligible MSMEs shall apply through online portal.
3.1) - MSME - Innovative (Incubation, IPR
and Design)
Objective:
• To promote all forms of innovations in the complete value

chain from developing ideas into innovative applications
through incubation and design interventions.
• To provide appropriate facilities and support for development

of concept to market, design competitiveness and protection
& commercialization of Intellectual creations of MSME sector.
• To promote a culture of innovation and creative problem

solving through knowledge sharing and collaboration
amongst industry, academia, government institutions,
research laboratories etc.
• To serve as a connecting link between industrial/academia
leaders and innovators, in order to encourage new product
development and hand-holding.
• To focus on developing affordable innovations that can

benefit a large number of people and at the same time being
commercially viable and sustainable.
• 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: For the design projects approved for

any MSME, 75% (Micro) and 60% (Small & Medium) of
the total project cost will be contributed by GoI up to a
maximum of Rs. 40 lakh and the remaining project cost
will be borne by MSMEs and deposited to the IA.
• Student Project: 75% of the total project cost will be

contributed by GoI up to a maximum of Rs. 2.5 lakhs.
• IPR
• A Grant of up to Rs. 1 crore would be provided to an

IPFC in milestone-based (three or more) installments.
• 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 lakhs
ii. Domestic Patent Rs. 1.00 lakhs
iii. GI Registration Rs. 2.00 lakhs
iv. Design Registration Rs. 0.15 lakhs
v. Trademark Rs. 0.10 lakhs
• Incubation: MSMEs, Individuals, Students who want to

develop their innovative ideas can apply through
registered HIs.
• Design: The beneficiary unit(s) must typically be a

registered micro, small or medium enterprises as per the
definition in MSMED Act and should have a valid UAM or
Udyam Registration.
• IPR: For Manufacturing MSMEs with UAM/UDYAM

Registration.
• MSME Innovative Champions is a holistic approach to unify,
synergize and converge 3 sub- schemes and interventions
with a single purpose 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.
How to apply:
• The eligible applicants may apply at the MIS portal

(https://innovative.msme.gov.in).
3.2) - DIGITAL MSME
Objective:
• The objective of the “Digital MSME” Scheme is to make

MSMEs digitally empowered and motivate them to adopt
digital tools, applications and technologies in their
production & business processes with a view to improve
their competitiveness in domestic and global markets.
• Empower & enable MSMEs to harness IT as a medium

of communication to revamp access to the markets to
update their managerial and technical knowledge
though online content–both static and dynamic.
• To give them software interventions, evolving their

internal efficiencies by way of intense ICT intake and
automating procedure for cost reduction, imparting
digital literacy and capacity enhancement for
information access, processing, collaboration and
dissemination.
• To offer to the MSMEs a safe and sound bouquet of

customized digital solutions which have been
designed keeping in mind the diverse requirements of
the eco-system, saving them from the travails of
indiscreet and indiscriminate adoption of technology.

(of the MoMSME) will be eligible to participate in “Digital
MSME” Scheme.
• “Digital MSME” Scheme for Promotion of Information and

Communication Technology (ICT) in MSME Sector, has been
conceived keeping in mind the diverse digital needs of the
sector and to make maximum number of MSMEs digitally
empowered. Under this scheme, large number of MSMEs
are expected to be benefited in terms of standardization of
their business processes, improvement in delivery time,
reduction in inventory carrying cost, improvement in
productivity and quality of production, controlling cost &
time, improved customer satisfaction etc. The scheme
includes, inter alia, providing digital identity to the MSME,
various software interventions, capacity building and
making them e-market compatible.
• The “Digital MSME” Scheme is an important component of

MSME Champions programme which has three other
components, namely, MSME Sustainable (ZED), MSME
Competitive (Lean) and MSME Innovative. The “Digital
MSME” Scheme is aimed to be wrapped around these three
schemes providing interoperability within these schemes.
How to apply:
• Eligible MSMEs shall apply through online portal.
Credit Guarantee Scheme for Subordinate
Debt (CGSSD) for Stressed MSMEs
Objective:
• Subordinate debt will provide a substantial help in sustaining
and reviving the MSMEs which have either become NPA or
are on the brink of becoming NPA.
• Promoter(s) may infuse this amount in MSME unit as equity
and thereby enhance the liquidity and maintain debt-equity
ratio.
• In a situation, where an outright loan is difficult, sub-debt

with guarantee will provide the requisite financing to the
MSME Units.
• Promoter(s) of the MSMEs are given credit equal to 15% of

their stake (equity plus debt) or Rs. 75 lakh whichever is
lower.
• This Scheme seeks to extend support to the promoter(s) of

the operational MSMEs which are stressed and have become
NPA as on 30th April, 2020.
• Promoter(s) of the MSMEs are given credit equal to 15% of
their stake (equity plus debt) or Rs. 75 lakh whichever is
lower.
• The maximum tenor for repayment is 10 years. There is a

moratorium of 7 years on payment of principal.
• Guarantee for the sub-debt: 90% guarantee coverage
comes from the scheme / trust and remaining 10% from
the promoter(s) concerned.
How to apply:
• MSMEs meeting the eligibility criteria may approach
eligible Banks.
• Loan lending bank branch, CEO, CGTMSE, SIDBI,

Swavalamban Bhavan, C-11, G-Block, BKC, Bandra (East),
Mumbai 400051.
• The guidelines of this scheme can also be downloaded

from the following URLs .
http://dcmsme.gov.in/AccesstoCredit.htm
SELF RELIANT INDIA (SRI) FUND
Empowering MSMEs for Aatmanirbhar Bharat
(Yet to be launched)
Brief of the scheme:

India has embarked upon the path of self reliant economic
growth for achieving its aspiration of becoming an
economic superpower. Towards this end, one of the
initiatives taken by the Government of India is the launch of
the Self Reliant India (SRI) Fund.
The Fund structure is designed in a manner that it will
leverage the strength of the private sector in providing
growth capital to viable MSMEs having a definite growth
plan.
Fund Objective:
The Fund aims to provide capital support to the Daughter
Funds for onward provision to MSMEs as growth capital,
through equity, quasi-equity and debt to achieve the
following:
• Supporting faster growth of MSME businesses, thereby

igniting the economy & creating several employment
opportunities.
• Supporting enterprises which have the potential to

graduate beyond the MSME bracket and become
National/International champions.
• Supporting MSMEs which will help make India
self-reliant by producing relevant technologies, goods
and services.
SRI Fund Structure:

The Ministry of Micro, Small and Medium Enterprises has
established, through NSIC Venture Capital Fund Limited
(NVCFL) ,an AIF, christened as Self Reliant India (SRI) Fund,
having Mother Fund-Daughter Fund structure for ensuring
availability of growth capital to the MSMEs, through
equity/quasi-equity/ equity like structured instruments.
This will encourage MSMEs in moving towards listing on the
Stock Exchanges, and growing beyond the bracket of MSME.
The AIF will be anchored by NSIC Venture Capital Fund
Limited (NVCFL), a wholly owned subsidiary of The National
Small Industries Corporation (NSIC), a Mini-Ratna
Corporation of the Government of India under the Ministry
of Micro, Small and Medium Enterprises (MoMSME).
SRI Fund Features:
Particulars Details
Viable MSMEs with a positive

Target Group
growth trajectory
Government of India through Mo

Total Corpus
MSME. Contribution INR 10,000
crore
Tenure of Fund Fund life is 15 years
Disbursement to MSMEs across

Scope
the country impacting lives and
far and wide.
Fund Type Daughter Funds can be
categorized I or II AIFs registered
with SEBI
Non-Profit Institutions, NBFCs,

Exclusions
financial inclusion sector, SHGs
and other financial intermediaries.
SRI Fund will contribute towards achieving India’s $5 trillion GDP target by
creating a vibrant MSME ecosystem, and making an Aatmanirbhar Bharat.
For complete details visit www.nvfcl.co.in
IMPORTANT
CONTACT
NUMBERS
57
Dollygung Industrial
Estate, P.O. Jungli Ghat,
Port Blair - 744103
MSME-DI Dcdi-vish@dcmsm
e.gov.in
0361-2970591
03842-241649
brdcdi-diph@dcms
me.gov.in
0612-2262208
0612-2263211
Post - Birgaon,
Raipur(CG) - 493221
Br. MSME-DI
-110001
0832-2705093
2705094
“MSME Tower” Nr. CIMS
Hospital, Science City
Road, Sola, Ahmedabad -
380060
127021
1st Floor, No.1-1165/L7/A/1,

Ward No.48,
brdcdi-gulb@dc
Opp. Govt. Polytechnic College, PDA msme.gov.in
Engineering College Road, AIWAN-E-SHAHI,
Kalburgi (Gulbarga), Karnataka - 585102
Kanjani Road, Ayyanthole,

P.O. Thrissur,
Kerala - 680003
0487-2360 dcdi-thrissur@d
216 cmsme.gov.in
dcdigwl.msme
@gov.in
Chourhata dcdirewa.msme
@gov.in
P-83, MIDC Chikalthana, 0240-

Naregaon Road, 2954040
Aurangabad-431006
Kurla Andheri Road,

Sakinaka,
Mumbai-400072
431006
7005711
045
MSME Development Institute,

MSME-DI 6th Mile, Sovima, Dimapur -
797115, Nagaland
765001
Opposite Godam No.2,

Bais Godam Industrial
Estate,
Jaipur, Rajasthan-302006
Upper Tadong, 03592-
East district, NH-31A,
Gangtok, Sikkim-737101
204666
MSME SCHEMES
MSME SCHEMES For more
For more information
information and
and regular
regular updates,
updates, visit:
visit: www.msme.gov.in
www.msme.gov.in 58
61
Plot No. PP11,
Madurai TANSIDCO Industrial Estate,
Melur Main Road, K Pudur,
Madurai, Tamil Nadu-625007
Br. MSME-DI
799006
211008
0512-
2240143
dcdi-kolkata@
dcmsme.gov.in
in
MAHATMA GANDHI
11. Repayment
Term Loan :- To be repaid in suitable installments with suitable moratorium
period as per cash flow of the business.
OD & CC Limit : Repayable on demand. Renewal and Annual Review as per
internal guidelines of the Bank.
12. Availability of the loan
MUDRA LOAN SCHEME - SALIENT FEATURES
Mudra loan under PMMY is available at all bank branches across the country. 1. Brief background for introduction of MUDRA Loan Scheme by Govt. of
Mudra loan is also issued by NBFCs / MFIs who are engaged in financing for India
micro enterprises in small business activities.
As per NSSO survey (2013), there are around 5.77 crore small/micro
units in the country, engaging around 12 crore people, mostly individual
proprietorship/Own Account Enterprises. Over 60% of units are owned by
persons belonging to Scheduled Caste, Scheduled Tribe or Other Backward
Classes. Most of these units are outside the formal banking system, and
hence are forced to borrow from informal sources or use their limited
owned funds. MUDRA Loan Scheme has been proposed to bridge this gap.
MUDRA Loan Scheme will aim to increase the confidence of the aspiring
young person to become first generation entrepreneurs as also of existing
small businesses to expand their activities.
2. Brief details of the Product
MUDRA loans are extended by banks, NBFCs, MFIs and other eligible financial
intermediaries as notified by MUDRA Ltd. The Pradhan Mantri MUDRA
Yojana (PMMY) announced by the Hon’ble Prime Minister on 8th April 2015,
envisages providing MUDRA loan, upto ` 10 lakh, to income generating
micro enterprises engaged in manufacturing, trading and services sectors.
The overdraft amount of ` 5000 sanctioned under PMJDY has been also
classified as MUDRA loans under Prime Minister MUDRA Yojana (PMMY).
The MUDRA loans are extended under following three categories :
 Loans upto ` 50,000/- (Shishu)
Micro Units Development & Refinance Agency Limited (MUDRA Ltd)
 Loans from ` 50,001 to ` 5 lakh (Kishore)
MSME Development Centre, C-11, G-Block,
Bandra Kurla Complex, Bandra E, Mumbai - 400 051.  Loans from ` 5,00,001/- to ` 10 lakh (Tarun)
Phone-022-67221465
More focus would be given to Shishu.
Email : help@mudra.org.in
Website:www.mudra.org.in Accordingly, all advances granted on or after 8th April 2015 falling under the
above category are classified as MUDRA loans under the PMMY. The application
forms for such loans shall also carry the name “Pradhan Mantri MUDRA Yojana”.
3. Eligible borrowers 7. Interest rate
 Individuals Interest rates are to be charged as
 Proprietary concern. per the policy decision of the bank.
 Partnership Firm. However, the interest rate charged
 Private Ltd. Company. to ultimate borrowers shall be
reasonable. Scheduled Commercial
 Public Company.
Banks, RRBs and Cooperative Banks
 Any other legal forms.
wishing to avail of refinance from
The applicant should not be defaulter to any bank or financial institution MUDRA will have to peg their interest
and should have a satisfactory credit track record. The individual borrowers rates, as advised by MUDRA Ltd., from
may be required to possess the necessary skills/experience/ knowledge to time to time.
undertake the proposed activity. The need for educational qualification, if
any, need to be assessed based on the nature of the proposed activity, and 8. Upfront fee/Processing charges.
its requirement. Banks may consider charging of upfront fee as per their internal guidelines.
4. Purpose of Assistance/Nature of assistance. The upfront fee/processing charges for Shishu loans are waived by most
banks.
Need based term loan/OD limit/composite loan to eligible borrowers
for acquiring capital assets and/or working capital/marketing related 9. Security
requirements. The MUDRA A. First charge on all assets created out of the loan extended to the borrower
loans are provided for income and the assets which are directly associated with the business/project
generating small business activity for which credit has been extended.
in manufacturing, processing,
service sector or trading. The B. DPN (wherever applicable).
Project cost is decided based on C. CGTMSE (wherever felt desirable)/MUDRA Guarantee cover (as and
business plan and the investment when introduced).
proposed. MUDRA loan is not for
consumption/personal needs. In terms of RBI guidelines issued vide Master Circular on lending to MSME
Sector (para 4.2) dated July 01, 2014, in respect of loans upto ` 10 lakh,
For the purpose of working capital limit, MUDRA has launched a new product banks are mandated not to accept collateral security in the case of loans
called “MUDRA Card”, which is a Debit card issued on RuPay platform, and upto ` 10 lakh extended to units in the Micro Small Enterprises (MSE) Sector.
provides hassle free credit in a flexible manner. Banks are required to encourage their branch level functionaries to avail of
5. Amount of assistance the Credit Guarantee Scheme cover, wherever felt desirable.
Upto to ` 10 lakh in three categories viz. Shishu, Kishore and Tarun. 10. Tenor of Assistance
6. Margin/Promoters Contribution Based on the economic life of the assets created and also the cash flow
Margin/Promoters Contribution is as per the policy framework of the bank, generated. However, MUDRA’s refinance assistance will be for a maximum
based on overall guidelines of RBI in this regard. Banks may not insist for tenor of 36 months which will also be aligned to terms of allotment of
margin for Shishu loans. MUDRA funds by RBI from time to time.
RU-14-03-0011-291221/FAQ
Frequently Asked Questions (FAQs)
Pradhan Mantri Mudra Yojana

(Ministry of Finance)
December 29, 2021
1. What is the MUDRA1 scheme?
MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial
institution set up by the Government of India under Pradhan Mantri Mudra Yojana (PMMY)
for development and refinancing micro unit enterprises. It was announced by the Finance
Minister while presenting the Union Budget for 2015-16. The purpose of MUDRA is to
provide funding to the non-corporate small business sector through various last-mile financial
institutions like banks, non-banking financial institutions (NBFC) and micro finance
institutions (MFI).
2. What is Pradhan Mantri Mudra Yojana?

Pradhan Mantri Mudra Yojana (PMMY) is a scheme launched by the Prime Minister for
providing loans upto INR 10 Lakhs to non-corporate, non-farm small/ micro enterprises.
3. Who are the objective customers of MUDRA/ What sort of borrowers are qualified
for help from MUDRA?
Non–Corporate Small Business Segment (NCSB) comprising of millions of proprietorship
/Partnership firms running as small manufacturing units, service sector units, shopkeepers,
fruits / vegetable vendors, truck operators, food-service units, repair shops, machine
operators, small industries, artisans, food processors and others, in rural and urban areas are
qualified for help through the scheme.
4. What are the various types of loan options available under Pradhan Mantri MUDRA
Yojana?
Under MUDRA scheme, the following loans are available to eligible company:
 Shishu: covering loans upto INR 50,000,
 Kishor: covering loans above INR 50,000 and upto INR 5 lakh,
 Tarun: covering loans above INR 5 lakh and upto INR 10 lakh.
1
https://www.investindia.gov.in/faq-pdf/29/en
5. What is the rate of interest on MUDRA loans?
The interest rates are deregulated and the banks have been advised to charge reasonable
interest rates within the overall guidelines of the Reserve Bank of India.
6. Who are eligible under MUDRA?

Any Indian citizen who has a business plan for a non-farm income-generating activity such as
manufacturing, processing, trading or service sector whose credit need is less than INR 1
million can approach either banks, micro finance institutes or non-banking financial
companies for availing of MUDRA loans under PMMY. The usual terms and conditions of
the lending agency may have to be followed for availing of loans under Pradhan Mantri
Mudra Yojana (PMMY).
7. Under PMMY-Shishu loans, what is the turnaround time for processing the loan
proposal?
For Shishu loans, normally seven to ten days is the turnaround time for processing the loan
proposals on receipt of complete information.
8. If someone intends to work on franchise model, how can MUDRA help them?
MUDRA operates a special refinance scheme for traders and shopkeepers. People can avail
the facilities under the scheme as per the requirements from any banks/MFIs/NBFCs in the
area.
9. What are the agencies providing loans under Micro Units Development and
Refinance Agency?
Pradhan Mantri Mudra Yojana (PMMY) loans will be extended by all Public sector Banks
such as PSU banks, Regional Rural Banks (RRBs), Cooperative Banks, Private Sector Banks,
Foreign Banks, Micro Finance Institutions and Non-Banking Finance Companies.
10. What is the usage of the Micro Units Development and Refinance Agency Card?
MUDRA Card is an innovative credit product wherein the borrower can avail of credit in a
hassle free and flexible manner. It will provide a facility of working capital arrangement in
the form of Cash Credit (CC) / Overdraft (OD) to the borrower. Since MUDRA Card will be
RuPay debit card, it can be used for drawing cash from ATM or Business Correspondent or
make purchase using Point of Sale (POS) machine. Facility is also there to repay the amount
as and when surplus cash is available, thereby reducing the interest cost.
11. Is there any standard format of application to avail MUDRA loans?

Yes. In respect of Shishu category, a one-page application format has been designed which
has been posted in MUDRA website. In respect of Kishor and Tarun category, a three-page
indicative application format has been designed and the same is also posted in MUDRA
website.
12. What is the list of documents needed for availing MUDRA loans?
List of documents required for availing MUDRA loans are Application form, Address Proof,
identity proof, Bank Statement of defined period, statutory return and others as may be
required.
13. What is the grievance mechanism available against bank officials, in the event of
non-sanction of loan?
Any grievance against non-consideration of MUDRA loan can be registered with the higher
authorities in the respective bank like Regional Manager / Zonal Manager of the Bank,
provided there is any lapse from the bank officials in sanctioning the loan.
14. Is there any requirement for a life insurance for MUDRA scheme?
Life insurance is not required for loans under PMMY.
Reference
 https://www.investindia.gov.in/faq-pdf/29/en
AG/HP/RC/AKP/SS
What is PSB Loans in 59 minutes?
PSB Loans in 59 minutes is an online marketplace, which enables the business individuals
to apply for Business Loan at an interest rate of 8.50% onwards. This initiative was taken to
ease the MSME Business and promote self-employed business model in India by reducing
the loan approval process and long queues at the bank. PSB Loans in 59 minutes aims at
approving the business loan in 59 minutes thus reducing it significantly from a long 30 day
process and expected to be disbursed in 7-8 working days, if approved.
PSB Loan in 59 minutes: Eligibility Criteria

For the Business which already exist the borrower should have Login ID of
psbloasnin59minutes.com, GST, IT compliant and should have last 6 months’ bank
statement. Know your eligibility before applying for a business loan from PSB Loans in 59
minutes:

 Income/Revenue
 Repayment Capacity of the Borrower
 Existing credit facilities
 Other factors set by the Financial Lender
PSB Loans in 59 minutes: Features and

Benefits
 Loan Amount starting from Rs 1 Lakh to Rs 5 Crore: PSB Loans in 59 minutes
helps in providing loan amount starting from Rs 1 Lakh to Rs 5 Crore to all the
business individuals so any business requirement small or big can be met easily with
the mentioned loan amount
 Rate of Interest: The rate of interest for PSB Loans in 59 minutes starts from 8.50%
onwards
 Minimal Documentation: With PSB Loans in 59 minutes, the entire process of a
Small Business Loan for MSMEs is expected to become super quick and hassle free
that too with minimal documentation
 Advanced Technology Backed Loans: PSB Loans in 59 minutes processes the
loans without human intervention till the stage of sanction or the disbursement. The
analysis process is done from the various sources of the loan applicant’s financial
profile
 Apply at Multiple Banks: PSB Loans in 59 minutes provides a convenient process
for the loan applicants who can apply for a Small Business Loans at multiple times in
one go
 Safe and Secure: The platform understands the safety of the information given by
the Loan Applicants. The entire data of the applicants is safe and secure with the
highest level of security
 Integration with Govt. Facilities: PSB Loans in 59 minutes is integrated with the
latest facilities like Income Tax Return, GST, Bank statement so it helps in decision
making of the loan application
Documents Required to apply for MSME/Business

Loans from PSB Loans in 59 minutes
Check the following documents required to apply for PSB loans in 59 minutes:
 Loan Applicant with existing business can apply for small business loan with the
following documents:
 GST Details: GST Identification Number (GSTIN) and GST User Name
 Details of Income Tax: Latest 3 years’ ITR in XML format
 Last 6 months’ Bank Statement in PDF Format: The Loan Applicant can upload
Bank Statement for maximum 3 bank accounts on the portal. It is preferable to
upload the Bank Statement having the major bank activities
 Details of the Loan Required
 Details of Proprietorship/ Partners/ Directors
 E-KYC Documents of the Loan Applicant
Steps to Register with PSB loans in 59 minutes

Step 1: Go to PSB Official website psbloansin59minutes.com and click on the register
Step 2: Register by filling in name, Email Address, mobile number and click on ‘Get OTP’
Step 3: Enter the OTP received on the mobile number
Step 4: Agree to the Terms and Conditions mentioned below in the checkbox
Step 5: Click on ‘Proceed’ after entering all the columns
Step 6: Create a Password for the account for future reference
Apply for PSB loans online to get approval in 59

minutes
 Step 1: Login in your profile by entering your user name and password
 Step 2: Select your profile as ‘Business’ for business or MSME loan and click on
‘Proceed’
 Step 3: Create your profile, enter your business PAN card and click on ‘Proceed’
 Step 4: Further, add GST details, Tax returns (XML format) and bank statement for
the last 6 months in PDF
 format
 Step 5: Upload your ITR, add required details and click on ‘Proceed’
 Step 6: Upload your bank details and click on ‘Proceed’
 Step 7: Mention your business details and any existing loan details as requested
 Step 8: Enter OTP to verify your email address
 Step 9: Select the desired bank and respective branch that you wish to take PSB
loan
 Step 10: You shall receive in-principle approval from the desired bank
Things to Keep in Mind

PSB Loan in 59 minutes is a MSME Loan focussed on automation of the Loan Process in
such a way that one can get eligibility letter, Approval in less than 60 minutes and can
choose the bank from the given list for a smoother MSME Loan process.
1. The Loan Amount varies from Rs 1 Lakh to Rs 5 Crore

2. PSB Loan in 59 minutes Rate of Interest starts from 8.50% onwards
3. The Loan Processing takes 59 minutes; reduced from 20-25 days
4. Post the approval of the loan, the Loan Amount takes 7-8 working days to be
disbursed
5. The Loan is processed without human intervention till sanction and/or disbursement
stage
Frequently Asked Questions (FAQs)
Q. What is PSB Loans in 59 minutes?

A. psbloansin59minutes.com is an online marketplace, introduced by the government of
India with the aim to provide Business Loans to MSMEs in a process which can approve
Loan Application in 59 minutes. So, the businessmen can apply for a small business loan
through PSB Loan to meet their business requirements.
Q. Can I get home loan or personal loan from PSB Loan in 59 minutes?
A. Yes, you can get home loan and personal loan both from PSB Loan in 59 minutes. The
interest rate and loan amount will depend on the monthly income, repayment history, etc. of
the applicant.
Q. What are the minimum and maximum loan amount one can borrow through PSB
portal?
A. The Loan Amount starts from Rs 1 Lakh to Rs 5 Crore
Q. What is the Rate of Interest for PSB Loan in 59 minutes offered by SBI?
A. PSB Loans have Interest Rate starting from 8.50% onwards
Q. What are MSME Loans?

A. MSME stands for Micro and Small Medium Enterprises that are run by
entrepreneurs. MSME loan is a type of Loan that is provided to entrepreneurs and Business
Individuals who can apply for a Loan to improve their existing Business.
Q. Does the borrower need to provide collateral for PSB Loan?
A. It is not necessary for the borrowers to provide security or a collateral for PSB Loans in
59 minutes.
Q. What is the turnaround time for this loan?

A. psbloansin59minutes.com takes 7-8 days working days to disburse the Loan Amount
after the Loan Application has been approved.
Q. How can PSB Loans in 59 minutes be contacted?

A. For any queries related to small business loans, pabloansin59minutes.com can be
contacted by calling at +1800 103 7491 (Toll-free number), 079-41055999 or email to them
on support@psbloansin59minutes.com
Q. What is the process of Loan Application of PSB Loans?

A. For anyone who would like to expand their existing business, one can apply at
www.psbloansin59minutes.com. Register yourself with the basic details. Once you have
your profile registered, there will be a set of basic questions which need to be answered
followed by the GST Details, Bank statements, Bank details and purpose of the loan. The
final stage will be of a list comprising of the Banks that have been matched with the Loan
Applicant’s profile. You can select the bank and proceed with the loan application if
approved.
Q. Do I need to provide fees for registration?
Ans. No, there is no registration fee to apply for PSB loans.
Q. Do I need to pay any charges towards availing a PSB Loan?
Ans. Yes, there shall be a defined processing fee that you will have to pay at time of loan
approval.
Q. How do I check the status of my application?
Ans. To check your loan application status, you can either visit paisabazaar.com or the
lender’s official website that is psbloansin59minutes.com.
Q. What is a Collateral-free Loan?
Ans. Collateral-free loan is an unsecured loan in which an applicant is not required to

submit any collateral or security with the respective bank or lender in order to avail any loan.
The collateral or security if required to be deposited comes in various forms and types, such
as residential or commercial properties, equipment, machinery, stock, inventory, raw
materials, goods, gold, vehicles, etc.
List of PSB Loan Banks/Lenders
SIDBI Central Bank of India IDFC First Bank
SBI IDBI Bank Saraswat Bank
Bank of Baroda Indian Overseas Bank IndusInd Bank
Punjab National Bank Punjab & Sind Bank ICICI Bank
Indian Bank UCO Bank Yes Bank
Bank of India Union Bank Federal Bank
Bank of Maharashtra Kotak Bank Canara Bank

MSME Loan in 59 Minutes
MSME Loan in 59 Minutes was introduced by the Indian Government on November 2, 2018, for
supporting Micro, Small and Medium Enterprises (MSME’s). Under the scheme, fast loans of up to
Rs.1 crore is provided in less than 1 hour. For this Scheme the government has also launched
a website, namely psbloansin59minutes.com, to cater to the prospective beneficiaries of the
scheme.
Know more about Udyog Aadhaar
Features of the Scheme

 The scheme is designed to grant a sum of upto Rs.One crore as a loan in fifty-nine minutes,
i.e. less than an hour.
 There will be a 2% rebate for MSMEs availing a loan of up to Rs.One crore, provided the
particular establishment is registered with GST.
 Loans are provided between the range of Rs. 1o lakhs to Rs. 1 crore with varied interest
rates. The minimum interest rate is fixed at 8%.
 Under the initiative, the MSMEs can also avail their loans from Small Industries Development
Bank of India (SIDBI).
 A portal has been opened solely for the disbursal of loans, which facilitates the completion of
formalities pertaining to the loan application.
 No need of original documents need, scanned document copy will get uploaded in the
provided website.
Documents Required
 Details of the Director or Owner like ownership details, personal details, education details.
 Last six-months bank statement.
 Tax returns statement in XML format.
 GST number.
Approving Banks
The following banks are providing loan under the scheme to MSMEs:
 Bank of Maharastra
 Oriental Bank of Commerce
 Punjab & Sind Bank
 Bank of Boroda
 Punjab national bank
 Indian Bank
 Andhra Bank
 Vijaya Bank
 Bank of India
 Canara Bank
 State Bank of India
 Corporation Bank
 IDBI Bank
 Indian Overseas Bank
 Syndicate Bank
 UCO Bank
 Union Bank
 Allahabad Bank
 United Bank of India.
Application procedure
Step: 1 Visit psbloasin59minutes.com and register.
Login Page
Step: 2 In the particular page, enter the name, mobile number, email ID and click on the “Get OTP”
button to generate OTP.
OTP
Step: 3 After getting the OTP, the page will be redirected to password set up page by doing the
needful, click Proceed.
Password
Step: 4 Answer (4 Questions) at the end, and the click on the “Proceed” option.
Provide your Data
Step: 5 Enter the GST details and submit.
GST details
Step: 6 Either upload the ITR Documents in XML format or Log in with the user credentials and
upload the required bank statements and click on “Proceed.”
ITR documents
Step: 7 Enter the income-tax login in the password as shown below.
Income tax login in password
Step: 8 Upload six-month bank statement by selecting the preferred bank along with the type of loan
or log in with the net-banking details.
Upload
Bank statements
Step: 9 Provide the details of directors as shown below and click “Submit.”
Directors Details
Step: 10 Fill up the required loan related requirements.

Loan details
Step: 11 Select among the proposed banks listed on the page.
Bank
Step: 12 Pay the one-time application fees to get the principle letter on the registered mail Id.
Payment
page
Step: 13 A confirmation message will pop out, click on the “Download” option to download the
confirmation letter.
Confirmation message
Step: 14 An in-principle sample letter will be displayed on the page, confirming the approval of the
grant of loans.
Principle letter sample
BANKABLE PROJECT REPORTS
INSTANT DOWNLOAD ONLINE
http://onlineprojectreport.com

1676463240571A.-ANIMAL-FEED-15TH-FEB-2023

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

1676463240571A.-ANIMAL-FEED-15TH-FEB-2023

Uploaded by

Copyright:

Available Formats

CATTLE & POULTRY FEED

Sl. Particulars Description

2. Constitution (Legal Status)

3. Father’s/ Spouse’s Name

Taluk/ Block: __________________________________

Margin Money Subsidy

8. Debt Service Coverage Ratio

9. Pay Back Period

10. Project Implementation

Date: Signature of the Applicant

ANNEXURES LIST OF ANNEXURES Page

ANNEXURE-I STATUTORY PERMITS AND BUSINESS LICENSES 24-25

ANNEXURE-II IMPORTANT STEPS TO START THE PROJECT 26-27

ANNEXURE-III TIPS TO IDENTIFY SUITABLE PROJECT LOCATION 28-28

HIGHLIGHTS OF THE PROJECT

Sl. Particulars Description

1. WCL/CC on First Year Rs. 4,55,000.00

2. WCL/CC on Second Year Rs. 5,58,000.00

3. WCL/CC from Third Year Onwards Rs. 6,60,000.00

1. GENERAL INFORMATION AND LOCATION :

Name of the Unit/

Size of the Space

4. THE PROJECT PROPOSAL :

5. PROSPECT FOR INVESTMENT :

6. POTENTIAL TARGET CUSTOMERS/MARKET :

7.1. Marketing Strategy : In any business, a solid marketing strategy is

• In addition to selling through retail channels, efforts would be made to

8. CRITICAL SUCCESS FACTORS :

• Procuring high quality raw-materials/consumables and securing its regular

• Technical know-how and experience of the entrepreneur in the field is

• The entrepreneur should be aware of the supply and demand conditions of

• Properly trained manpower should be engaged.

• Knowledge about local environmental regulations and compliance

• Efficient recovery of wastes and their utilization may improve operational

• Need extensive marketing, distribution and effective sales management

The Promoter is technically well-informed to undertake the proposed venture and

9.1. PROCESS DETAILS : The ingredients are pulverised in a pulveriser to

PROCESS FLOWCHART : The process flowchart that describes the business is

9.2. INGREDIENTS : The project envisages adopting approved formula for

9.3. QUALITY SPECIFICATIONS: The quality of the Products should be in

9.4. POLLUTION CONTROL: It is advisable to follow the prescribed norms and

9.5. EFFLUENT DISPOSAL: There is no major effluent problem associated with

9.6. ENERGY CONSERVATION: Proper care should be taken in running the

10. INSTALLED AND OPERATIONAL CAPACITY :

Poultry Feed 100 MT

11. RAW MATERIALS AND CONSUMABLES :

11.1. The raw materials required are as follows;

• Ingredients for Feed as shown in Formulation in Sl. No. 9.2 and;

12. POWER AND UTILITY :

Plant & Machinery - 7.46 KW

General Lighting - 2.00 KW

13. TENTATIVE IMPLEMENTATION SCHEDULE :

ACTIVITIES TIME PERIOD

Civil Work/Arrangement of Finance

14. BASIS & PRESUMPTIONS :

14.3. Premises is assumed to be owned or occupied on lease hold basis.

14.9. Insurance charges have been considered Lump Sum.

14.12. Non-refundable deposits, Fees for Preparation of Detailed Project Report,

14.13. Break Even Point is calculated on optimum year of production.

15. CAPITAL INVESTMENT ESTIMATES :

15.1. FIXED CAPITAL

15.1.1. LAND AND SITE DEVELOPMENT

15.1.2. BUILDING AND CIVIL WORKS

Details of Building and Civil Works are given below;