BENEFITS OF SSI AND MSME REGISTRATION

BENEFITS OF SSI AND MSME REGISTRATION

 

The Government of India has given many aids, schemes, incentives, subsidies, etc. to the Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME).

However, in order to avail these aids, schemes, incentives, subsidies, etc. the Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME) must mandatorily get registered under The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.

Below is a list of some of the aids, schemes, incentives, subsidies, etc. the Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME) will be entitled to avail and enjoy post registration under the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006:

 

SUBSIDY FOR INDUSTRIAL UP-GRADATION

The Government of India is providing a subsidy for the up-gradation of the technology, skill and other related areas of the Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME).

The Government of India shall time to time prescribe rules in the manner in which this subsidy shall be delivered to the Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME).

 

PROTECTION FOR DELAYED DISBURSEMENTS

The Government of India gives safety and protection to Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME) against the payment of amounts from buyers, consumer etc.

This is done through the process of Alternative Dispute Resolution so that the time lag is less. The following are the essentials of this scheme.

In circumstances where the Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME) supplies a buyer with a specific product then the buyer is obligated to make the payment before the delivery of product to him.

In circumstances where there is no payment date agreed upon between the Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME) and the buyer then the buyer must make the payment within fifteen days of delivery of goods. However, in case the payment is made by the buyer post forty-five days of the delivery of goods then he is required to pay a delay fee as well in the form of interest on payment. The rate at which this interest must be paid to the Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME) is three times the bank rate as prescribed by the Reserve Bank of India

 

LOANS WITHOUT MORTGAGE

The Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME) shall be entitled to loans without the requirement to surrender any product or property as mortgage. This is through the scheme of Credit Guarantee Fund launched by the Government of India through the creation of a trust called Credit Guarantee Fund Trust for Micro and Small Enterprises (CGFTMSE) created by the Government of India through the Small Industries Development Bank of India (SIDBI).

This scheme is valid for new as well as existing Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME).

 

CERTIFICATION CHARGES COMPENSATION

The Government of India is providing compensation on the cost incurred by the Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME) for procuring the certification of the International Organization for Standardization (ISO) for their products.

 

EXEMPTION ON OVERDRAFT INTEREST

The Government of India is providing an exemption on the interest accrued by the Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME) on overdraft.

In order to avail this concession, the Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME) must surrender the Overdraft certificate and all other necessary documents to the respective District Industry Centre.

 

CONCESSION ON REGISTRATION FOR PATENT

The Government of India is providing a concession on the cost incurred by the Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME) for procuring their patent registration for their products.

This concession shall be up to fifty percent of the costs incurred by the Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME).

In order to avail this concession, the Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME) must surrender the Patent Registration certificate and all other necessary documents to the respective District Industry Centre.

 

REDUCTION IN CONSUMABLE BILLS

The Government of India also provides the Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME) with a reduction on their electricity bills, water bills etc.

The Government of India shall time to time prescribe rules in the manner in which this reduction shall be delivered to the Small Scale Industries (SSI) and the Micro, Small and Medium Enterprises (MSME) and at what rate it will be delivered.

 

SUMMARY

The Government of India has given benefits to the SSI and MSME Industries thorough the Micro, Small and Medium Enterprises Development Act, 2006.

 

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