Developing New Business

Micro , Small , Medium enterprise

• Based on investment in Plant & Machinery , as
per MSMED Act 2006

• Micro < Rs 25 lacs

• Small > 25 lacs – 5 cr
• Medium > 5 cr - < 10 cr
 Statutory Compliance Acts of WB
• Electricity Act ESI
• Child labour act Gratuity & Bonus
• Minimum wages etc , etc,
• PF
• WB shop & Establishment

• Ref: myenterprisewb
 Points for discussion
• Land for factory
• Identification of technology , machineries
• Necessary licences , registration
• Fund
• Detailed project report
• Setting up factory
• Pollution control clearance
 Points
• Role of different Government agencies
• Governmental scheme /subsidies
 Land
• Options available are –
• Industrial land developed by state
development corporation like SIDCO,
• Industrial sheds developed by state industrial
development agency
• Private developers
• Buy land & develop
 Industrial park of WBIDC
NAME OF PARK NAME OF LOCATION AREA OF PARK
INDUSTRY

Shilpangan (light Light Engg Salt Lake 2.25 acres

engg park) products

Food Park (ph -3) Food Processing Sankrail , Howrah 52 acres

• aaa
http://www.wbidc.com/about_wb/industrial_infrastructu
re.htm
Details of WBIDC land/shed available
NAME OF TYPE OF LAND/MODULE TENTATIVE PRICE
INDUSTRIAL PARK INDUSTRIES /SFT

Manikanchan Gem & Jeweelary SDF- 1 Rs 6447

Salt lake

CFB - 5 Rs 7370
 Source
• West Bengal Industrial Development
Corporation

• http://www.wbidc.com/industrial_parks/avail
able_land.htm
• http://www.wbiidc.org/
• www.startupbengal.in
 Falta special economic zone
• Plots:
Developed plots at a very nominal lease rent of Rs. 70
(+10% on rent) per annum, revised after every three years

• Industrial shed:
Industrial shed (Total Area 6,500 Sq.m)
Lease rent - Rs.1365 (+10% on rent) per annum
Shed No. 3.
Lease rent- Rs. 651 (+ 10% on rent) per annum for
old Industrial Shed
 Falta
• Standard Design Factory building (SDF): (Total Area 15,570
Sq.m)
Lease rent- Rs 525/- (+10% on rent) per annum for Basement in
SDF (General) Building
• Rs 1050/- (+10% on rent) per annum for SDF Electronics
Building.
• Residential quartet -- Sector - IV Rs. 42000/- per flat per
annum, at Tomato Bagan (Falta Zone) Sector 2 Single Room at
Rs. 42000/- per flat per annum , double Room at Rs. 58800/- per
flat per annum.

http://fsez.gov.in/infrastructure.html
 West Bengal small industries development
corporation
• List of units –

• Baltikuri industrial sheds

• Ashok Nagar industrial area
• Baruipur industrial area
• Beleghata Industrial area

• www.wbsidcl.com
 Technology
• MSME - Development Institute, Kolkata,
• is a field Institute of Office of Development Commissioner
(MSME), under Ministry of MSME, Government of India.

• Provides assistance for the promotion and Development of

Micro, Small and Medium Scale Industries in the state of West
Bengal & Andaman & Nicobar Islands.

• Institutes at Siliguri, Suri & Durgapur - 20 districts in West

Bengal & Branch at Port Blair covering two districts in
Andaman & Nicobar Islands.
 Technology
• Areas of service –
• Leather, Footwear, Mechanical, Chemical & Food,
Ceramics, Metallurgy, Cane & Bamboo, Hosiery,
Electrical & Electronics, Glass, Ancilliary items
• Working with 183 clusters
• Provides support for technology
• dcdi-kolkatta@dcmsme.gov.in
• http://www.sisikolkata.gov.in/
 Technology
• MSME Technological facilitation centre
• CSIR & G-WB joint forum
• Support in terms of new technology

• http://www.msmetfc.in/
 Technology
• Process Selection
• for imported technology agreements for
technology transfer should be made.
• A lot of appropriate technology is being
developed at CSIR and Defence Research Labs
and some of this technology can now be
bought.
 Machinery
• NSIC procedures for hire purchase of machinery
• The Director of Industries of the State forwards the
application to the head office of the NSIC at Delhi

• Instructions are sent to the suppliers to dispatch the

consignment (duly insured for transit risk) to the hirer and to
send the R/R or C/R to the regional office

• The NSIC after ensuring that all dues have been paid by the
hirer, releases the R/R or C/R to him for taking delivery of the
machines.
 Machinery
• Value of machines that can be supplied
• Rs. 7.5 Lacs, F.O.R. or landed cost as the case may be.

• Earnest Money
• 5% or 10% of the value of machinery depending on whether the equipment is imported or
indigenous. Interest 9 per cent per annum with a rebate of 2 per cent on prompt
payment.

• Administrative Charge
• 2 per cent on the sales value of machines .

• Period of Repayment
• The value of the machines, is payable
along with interest and administrative
charge in 7 years.
Fund
 Fund
• Long and medium term loans
Short term or working capital requirements
Risk Capital
Seed Capital/Marginal Money
Bridge loans (short term)
 Fund
• Pradhan Mantri MUDRA Yojana (trading ,
manufacturing , service)
• Shishu: up to 50,000 INR.
• Kishor: above 50,000 and below 5 lakh INR.
• Tarun: above 5 lakh and up to 10 lakh INR.
• Highest payable loan amount will be 10 lakh

• www.mudrabankloanyojanapmmy.in/
 Fund
• i) Commercial/Regional Rural/Co-operative Banks.
(ii) SIDBI: Small Industries Development Bank of India
(iii) SFCs/SIDCs: State Financial Corporations ( Delhi
Financial Corporation),State Industrial
Development Corporations.

• Long and medium term loans are provided by SFCs, SIDBI and
SIDCs, Banks for -----
purchase of land,
construction of factory building/shed
purchase of machinery and equipment.
 Fund
• Short-term loans (bank) –
• purchase of raw materials
• payment of wages
• manufacturing, administrative expenses.

• The commercial banks sanction loan limit of

Rs.1 crore (working capital, term loan)
Fund – commercial banks – Documents
• Balance Sheet and Profit Loss Statement for last
three consecutive years of firms
• Income Tax Assessment Certificates of
Partners/Directors
• Proof of Possession of Land/Building
• Architect’s estimate for construction cost
• Partnership deed/Memorandum and Articles of
Associations of Company
• Project Report
• Budgetary Quotations of Plant and Machinery
 Fund
• The CGTMSE scheme or Credit Guarantee Fund Trust
for Micro and Small Enterprises (CGTMSE) is
operationalized by SIDBI and the Government of
India

• Bank loan of upto Rs.1 crore provided to a startup or

an existing business in the form of term loan or
working capital or both can be covered.
(manufacturing sector and service sector are eligible)
 Fund
• CGTMSE guarantee fee is payable at 1.5%
(0.75% in case of North Eastern Region
including state of Sikkim)

• failing to repay the loan commitment to the

bank, the CGTMSE organization would make
good the loss incurred by the bank up to 85%
of the credit facility
Fund
List of banks providing loan under scheme
• Allahabad Bank
• Allahabad UP Gramin Bank
• Andhra Bank
• Andhra Pradesh Grameena Vikas Bank
• Andhra Pradesh State Financial Corporation
• Axis Bank Limited
• Baitarani Gramya Bank
• Dena Bank
• HDFC
• UBI
• Others ................
 Bank loan
• Contact SME department of the bank ,
• Submit & process application
 SME Loan Products
For Micro Enterprises and SSIs For Traders
SME Credit Card (Up to Rs.10 Lakh) Traders Easy Loan
SME Smart Score (Up to Rs.50 Lakh) Flexi Loan for Trade and Services
For Startups For Doctors
SBI SMILE (Interest Free Loan as equity) Doctor Plus
Term Loans for SSIs For Schools & Institutes
General Purpose Term Loan for SSI Sector (Up to Rs.50 School Plus
Lakh)
Open Term Loan (Up to Rs.2.5 Cr) For Shop Owners
Corporate Loan (Fro Rs.25 Lakh up to Rs.10 Cr) SBI Shoppe
SBI Shoppe Plus
Add Ons
SME Credit Plus For Restaurant owners
Standby Line of Credit for Working Capital Finance to Restaurants

Food processing For Transport Operators

Rice Mill Plus Transport Plus
Dal Mill Plus
For skill based businesses
Collateral Free Loan Artisan Credit Card
SME Collateral Free Loan
For Vendors and Dealers: Supply Chain Finance
Miscellaneous
Rent Plus Electronic Vendor Finance Scheme
SME Construction Equipment Loan Electronic Dealer Finance Scheme
SME Car Loan
Loans to Women Entrepreneur
Stree Shakti Scheme
 SIDBI
• Collateral Free –
• Entrepreneurs can get up to Rs. 100 lakhs
without offering collateral. This is done
through the establishment of a Trust called
Fund Trust for Micro and Small Enterprises
(CGTMSE)
 Procedure for application
• Step 1: Accredited consultants empanelled with
SIDBI will prepare the documents . ACs will
draft a Basic Information Memorandum (BIM).
• Step 2: The BIM is approved by the MSME
entrepreneur. The ACs will then submit the BIM
to SIDBI.
• Step 3: If needed, the proposal will be rated by
a rating agency approved by the RBI.
 Procedure
• Step 4:
• SIDBI will provide equity
• The bank will finance units in the service sector.
• It will provide credit to MSMEs for Energy Efficient and
Cleaner Production Processes.
• Step 5:
• loan application can be submitted to Public Sector
Banks.
• SIDBI has a memorandum of understanding (MOU) with
public sector banks for the purpose of loans.
 Venture capitalist – list
• www.smergers.com/businesses
• www.unituslabs.org/unitusseedfund
• https://inc42.com/resources/top-47-active-ve
nture-capital-firms-india-startups/
• https://startupwonders.com/top-50-venture-c
apitalists-in-india-active-and-best-vc-firm
 Statutory licence
• Trade licence (from Municipal corporation)
• If manufacturing facility –(10 employees or
more with power or 20 without power)
Registration with Inspector of Factories.
• Shop & Establishment act – if falls under
category
• www.msmedikolkata.gov.in/images/clearance
s.pdf
 Licences
• Central excise
• Pollution control
• State Insurance & PF
• Professional tax

• Product specific
• Dangerous materials (chemicals)
• Fire Licence
• Explosive
• Drugs & Cosmetics
 GST
• Companies having annual turnover of Rs 20
lacs (Rs 10 lacs for NE, hill states) will have to
mandatorily register
• Registration process – online
• GST number
• Pay GST online , refund as applicable
 Detailed project report- DPRS
• Required to be submitted for bank loan -
• Location
• Technology, raw material sources
• Equipments requirement , sourcing
• Techno economic study
• Financial parameters (projection for 5 yrs)
• Market scenario , strategies
 Format
• Introduction of the Research
– Descriptions
– Small scale sector
– Auxiliary sectoral enterprises
– Purposes and range of the Research
– Methodology of the research work
• Promotional ideas and their association to the nature of the industry
– Contemporary perception of advertising
– Promotional method
– Service sectors
– Demand variable of several kinds of products
• Break even assessments
– Kinds of values
– Chief techniques of costing
– Break even ideas of costing
 Format
• Management skills
– Additional SIDO services
– Fiscal Data
– Technical support
– Quality enhancement and analysis
– Sectoral administration and guidance
– Expansion programs: DIC and motivation in diffident areas
– Technical advisory firm
– Excise exclusion allowance
– Commercial expansion strategies
– Auxiliary development and sub- contracting exchanges
– Upgrading plans
– Government store procurement plan
– Provision of goods for manufacturing
– Fiscal aid
• Conclusion
• References
• Bibliography
 Setting up
• Use approved contractor for execution
• Periodic report on construction to be sent to
bank
• Bank will inspect & monitor progress ,
amount spent periodically
• Disbursement will be phased accordingly
 Pollution clearance
• (Details in PDF)

• https://mssewb.gov.in/pollution
 List of consultants
• https://dir.indiamart.com › ... › Project
Management › Project Report Services

• https://dir.indiamart.com › Corporate Finance

& Leasing Advisors
 Whom to contact , for what
SR NO PURPOSE CONTACT POINT

1 Registration Directorate of Industries

DIC

2 Technical Consultancy SISI , DIC , Technical Consultancy

organization

3 Raw material NSIC , SIDCO

4 Training ,Marketing, Market TCO , SISI

Research

5 Supply of machinery on lease National Small Industries Corp (NSIC)

 Whom to contact , for what
SR NO PURPOSE CONTACT POINT

6 ISI mark, Bureau of Indian Standards

7 Testing of Products National Test House

8 Trade mark Registration Deputy registrar , Trade mark Registry

9 Patent registration Dy Controller of Patent & Design

10 Pollution Pollution Control Board

 Subsidies
SR NAME OF SCHEME DETAILS
NO
1 Credit Guarantee Fund Scheme Working capital up to rs 1 cr
(CGMSE)

2 Organic Fertilizer, Bio fertilizer 50% advance subsidy

manufacturing

3 Technology Upgradation Fund 5% interest reimbursement of interest

scheme TUFS charges,
15% credit linked capital subsidy

4 Tech upgradation 25% subsidy on plant, machinery , civil

,Modernization – Food works – max 50 lacs
Processing

5 subsidy scheme for Technology 15% , max- 15 lacs

upgradation

6 Market development assitance Reimbursement of 75% cost , one time

 Subsidy
SR NO NAME OF SCHEME DETAILS

7 Technology & Quality Support for adoption of standard

upgradation
8 Mini tool room – Training centre One time 90% cost of machinery,
equipment (max 9 cr)
9 Raw material Assistance

10 Cold chain Pre cool facilities

11 Marine products, Dairy farming, Subsidy

Horticulture

• muvsi.in › FINANCE
 Subsidy
• Adequate support & subsidy in Training,
Marketing (exhibition – space rental , travel
cost) , Product development cost, Raw material,
Export are available

• http://msme.gov.in/sites/default/files/Sch-vol1-1
51214.pdf-sri.pdf

msme.gov.in/sites/default/files/Sch-vol1-
151214.pdf-sri.pd
 Subsidy
https://www.standupmitra.in/Home/SubsidySch
emesForAl
muvsi.in/government-subsidy-for-small-
business-in-india/
www.msmeonline.tn.gov.in/
 Benefits to women entrepreneur
• 1) Annapurna scheme
For food, utensils , water filters
Loan up to Rs 50,000
• 2) Stree Shakti Package
For 50% ownership
0.5% concession on interest on loan up to
Rs 2 lacs
 Women entrepreneur
• 3) Bhartiya Mahila Bank loan
0.25% concession on interest Rs 1 cr
collateral free
• 4) Dena shakti
Rs 20 lacs for retail trade, retail stores ,
0.25% concession on interest
https://blog.bankbazaar.com/small-
business-loans-for-women/
Important organizations
Incubation Centre
 Incubation centre- Role
• Infrastructure – work space, library , lab,
secretarial
• Provides support in –Marketing , legal aspects,
HRM, networking (supplier/customer)
• Helps in – obtaining approvals, product
development, securing capital, conducting
feasibility studies, generating business
plans, ideas
 Incubation centres – list
• NS Raghavan Center for Entrepreneurship
Learning (NSRCEL), IIM Bangalore
• Technology Business Incubator, Birla Institute of
Technology, Pilani
• Center for Innovation, Incubation and
Entrepreneurship, IIM Ahmedabad
• Entrepreneurship Cell, IIT Kharagpur ,,,,,,,,,,,,,,

• startupindia.gov.in/incubation.php
 Important organizations & role
SR NO NAME OF ROLE
ORGANIZATION

1 Small Industries Technical Consultancy & Advisory , Training & Testing

Service Institute Facility , Marketing support
(SISI)
2 State Small Distribution of Raw material, Supply of machinery on
Industries Corp hire purchase
(SSIC)
3 Directorate of Development & Implementation of schemes of
Industries (State) assistance

4 Small Industries Project report preparation (model), Assess

Development requirement of indigenous /imported raw material
Organization (SIDO)
 Imp org
SR NO NAME OF ROLE
ORGANIZATION

5 District Industries Identification of entrepreneur , Selection of Project

Centre ( DIC) Provisional registration under SSI
Loan for fixed asset, Clearances from various
departments (initiates)
Assistance of raw material

6 National Small Development of small scale unit ,

Industries Providing machines in hire purchase
Corporation Assist in Marketing
(NSIC) Distribution of raw material
Construct Industrial estate , run
 Imp org
NAME OF ORGANIZATION FUNCTION & ROLE

SIDBI Refinance loan

Discounts bills of sale of goods manufactured by unit
Technological upgradation
Expand channel of marketing
Acts as venture capitalist upto Rs 10 cr

NABARD Policy formulation on credit to Agriculture

(National Bank of Rural credit
Agriculture & Rural
Development )
 Imp org
NAME OF ORGANIZATION ROLE & FUNCTION

EDI- Ahmadabad Develop Training module

Entrepreneurship Development Institute Research & Training
Consultancy services

IIE – Guwahati do
Indian Institute of Entrepreneurship

NIESBUD – Noida do
National Institute of Entrepreneurship &
Small Business Development
 Imp org
NAME OF ORGANIZATION ROLE & FUNCTION

FIEO Development of export

Federation of Indian Exports Trade delegation
organization Market survey
Commercial intelligence

KVIC Planning , Promotion , Organization & Implementation

Khadi Village Industries of Khadi & village industries of rural areas
Corporation
 Imp org
NAME OF ORGANIZATION ROLE & FUNCTIONS

TCO Project profiles

Technical Consultancy Project Report
Organizations DPR
(WEBCON- West Bengal) Feasibility studies
Market Survey
Technology , machinery supplier identification
Project Profiles, report, feasibility study

1) MSME – Development Institute,

Ministry of MSME, Govt. of India,
111 &112, B. T. Road, Kolkata-700108.
2) Directorate of Industries
New Secretariat Bldgs, 9th fl.,
1, Kiran Sankar Roy Road, Kolkata-1
3) W.B. Small Industries Dev. Corpn.,
6A, Raja Subodh Mulick Square
(3r floor) Kolkata-13 & 31, Block Burn Lane,
Silpa Bhawan, Kolkata-12
 Export information - source
• Export promotion Council
• http://indianhandicraftexporter.com/directory
.htm
• http://www.izito.co.in/
 Exporters
• Mr. Saif Ali Mirza
• +91-9873-050588
• C- 122, First Floor, Sector- 10,Noida (UP),India
• www.highkraft.com

• Mr. Raman Chanana

• +91-9910302442
• +91-11-29992442
• RZ-73-D, First Floor, Street No 10, Tughlakabad Extn
• www.sangeetaexports.com
 Promotion - Exhibitions in India

• http://www.india.com/travel/kolkata/photos/
handicrafts-fair-in-kolkata-kolkata-west-bengal
/
• http://www.izito.co.in/
 Marketing (Govt support)
1) Zonal Joint Director General of Foreign Trade
4, Esplanade East, Kolkata-700069

2) W.B. Small Industries Dev. Corpn.,

6A, Raja Subodh Mulick Square
(3r floor) Kilkata-13
 Promotional agencies (Govt.)
1) Reserve Bank of India,
Rural Planning and Credit Department,
15, Netaji Subhas Road, Kolkata-1
2) Indian Institute of Packaging,
Block CP, Sector V, Salt Lake City
Kolkata-91
3) Khadi and Village Industries Commission
33, Chittaranjan avenue, Kolkata – 73
 Quality & standard (govt.)
Quality & standard -
MSME Testing Centre (MSME -TC),
111 & 112, B.T. Road, Kolkata-108

Raw material under Govt supply -

National Small Industries Corpn. Ltd.,
20 B, Abdul Hamid St., 7th floor, Kolkata-69