Hello Readers,
Marketing, a strategic tool for business development, is critical for the growth and survival of MSMEs. Due to the lack of information, scarcity of resources and unorganized ways of selling /marketing, MSME sector often faces problems in exploring new markets and retaining the existing ones. Keeping in view these facts, the Procurement and Marketing Support Scheme has been introduced to enhance the marketability of products and services in the MSME sector. The guidelines come into force w.e.f. 26-07-2022.
OBJECTIVE OF THE SCHEME
- Promoting new market access initiatives like organizing / participation in National / International Trade Fairs / Exhibitions / MSME Expo, etc. held across the country.
- To create awareness and educate the MSMEs about 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.
SUBMISSION OF PROPOSALS
The proposal regarding the scheme components / events will be submitted to Implementing Agency on line (or system in place) well in advance preferably two months before the commencement of subject event.
ELIGIBILITY CONDITION
Manufacturing / Service sector MSEs having valid Udyam Registration (UR) Certificate.
DETAILED INFORMATION
- Market Access Initiatives across the country
- Organizing events like Domestic Trade Fair& Exhibition/ Awareness programs/ National & International Workshops & Seminars/ Vendor Development Programs.
- Vendor Development Programme
- Capacity Building
- Development of Retail Outlet
(A) MARKET ACCESS INITIATIVES ACROSS THE COUNTRY
Participation of Individual MSEs in Trade Fairs / Exhibitions:
| SR.NO. | ELIGIBLE ITEMS | SCALE OF ASSISTANCE |
| 1. | Space Rent charges | 80% subsidy on built up space rent paid for General category units and 100% for SC/ST/women/NER/ PH /Aspirational District units on minimum stall size of the event for Micro and Small Enterprises. |
| 2. | Contingency expenditure (include travel, publicity & freight) | 100% contingency expenditure for all categories of units subject to maximum Rs. 25,000/- or actual, whichever is less. One representative from each participating unit may travel, limited to AC II tier train fair/ Economy Class Air Fare per event |
| Maximum Budgetary Support (including contingency expenditure) | Metro & A Class City: Rs 1.50 lakh (incl. All taxes) max or actual, whichever is less for a participating enterprise per event. Other City: Rs. 0.80 lakh (incl. All taxes) max or actual, whichever is less for a participating enterprise per event. |
(B) ORGANIZING DOMESTIC/ INTERNATIONAL TRADE FAIRS/EXHIBITION AND PARTICIPATION IN TRADE FAIRS / EXHIBITIONS BY THE MINISTRY/OFFICE OF DC (MSME)/GOVERNMENT ORGANIZATION
- The expenditure to be incurred wherever the Ministry decides to organize or participate on its own will be decided by the Empowered Committee, subject to the overall ceiling prescribed by the Deptt. of Expenditure (If applicable).
The scale of assistance to participating MSEs in MSME pavilion will be admissible:
| SR.NO. | ELIGIBLE ITEMS | SCALE OF ASSISTANCE |
| 1. | Space Rent charges | 80% subsidy on built up space rent paid for General category units and 100% for SC/ST/women/NER/ PH /Aspirational District units on minimum stall size of the event for Micro and Small Enterprises. |
| 2. | Contingency expenditure (include travel, publicity & freight) | 100% contingency expenditure for all categories of units subject to maximum Rs. 25,000/- or actual, whichever is less. One representative from each participating unit may travel, limited to AC II tier train fair/ Economy Class Air Fare per event |
| Maximum Budgetary Support (including contingency expenditure) | Metro & A Class City: Rs 1.50 lakh (incl. All taxes) max or actual, whichever is less for a participating enterprise per event. Other City: Rs. 0.80 lakh (incl. All taxes) max or actual, whichever is less for a participating enterprise per event. |
(C) Vendor Development Program (VDP)
To facilitate market linkages for effecti.ve implementation of Public Procurement Policy for MSEs.
| TYPE OF VDPS | PROGRAM DURATLON | SCALE OF ASSISTANCE |
| CPSE level Vendor Development Program cum Exhibition of Products | 2 days | Sanction of max. Rs 5.0 lakh / program or actual, whichever is less, per program. Each program would consist of training on various aspects related to GeM and exhibition of products. VDP should benefit MSMEs in their GeM registration and detailed understanding of Public Procurement with CPSEs. |
(D) 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) – Assistance will be made available for incurring expenditure on given headings after being eligible for the same.
(E) DEVELOPMENT OF RETAIL OUTLET
Infrastructure development of Retail Outlets for promoting GI products:
Rs. 30 lakh max per outlet in Metro & A class cities and Rs. 20 lakh max per outlets for other cities shall be provided towards infrastructure outlet area of 500 sq. ft. with proper interior design, including computer, printer, bill counter, catalogue of product and show case to the retailer subject to 50% contribution from the retailer. Limit of GIA will be Rs. 15.0 lakh for Class A & Metro cities and Rs. 10.0 lakh for other cities, subject to matching contribution from the retailer. Only the products with valid Geographical Indications (GI) would be sold at such outlets. The seller must have an MoU / agreement with GI holder.
Disclaimer: This Article is only a knowledge sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update etc if any.
Published on: February 5, 2023