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OFFICE OF THE DEVELOPMENT COMMISSIONER(MICRO, SMALL & MEDIUM ENTERPRISES)

MINISTRY OF MICRO, SMALL & MEDIUM ENTERPRISESGOVERNMENT OF INDIA

Nirman Bnawim, 7th Floor, Maulana Azad Road,New Delhi-110 108MICRO, SMALL & MEDIUM ENTERPRISES

~~ ~ am "I~ ~

Ph EPABX - 23063800, 23063802, 23063803 FAX - (91-11) 23062315, 23061726, 23061068, e-mail - dcmsmehq@nb,nic.in

11151115:ByE-mail/Speed Post

F. No. 21lNMCPIMATU/Budget/Sanction/2016-17 Dated: 26.05.2016

The Accounts officerPay & Accounts Office (MSME)Chennai /Kolkata/ Mumbai 1 New Delhi.

Subject: - Sanction for allocation of Rs. 232.60 Lakhs (Two Crore Thirty Two lakh and Sixtythousand only) [Rs. 214.10 lakh subsidy and Rs 18.50 lakh Other AdministrativeExpenses] to 30 No. of MSME-DIs (Other than NER) for "Marketing Assistanceand Technology Upgradation (MATU) in MSMEs" under NMCP Scheme for the year2016-17- reg.

Sir,

I am directed to convey the sanction of the competent authority for allocation of funds to theunder mentioned MSME-Dls for Activity- 5 (New Markets through - State/District levellocal exhibitions/trade fairs), Activity - 6 (Corporate Governance Practices) and, Activity-8 (Reimbursement to ISO 18000/22000/27000 Certification) of the scheme as per details givenbelow.

(Rs; inLakh)

S. MSME-DIs Activity -5: New Markets through Activity - 6 (CorporateNo. state/district level local exhibitions/trade Governance, Practices )

fairs. and Activity-8Reimbursement to ISO180001 22000/27000Certification

Target Subsidy Other Target SubsidyAllotted (Rs. in Administrative Allotted (Rs. in Lakh)(in Nos.) Lakh) Expenses (OAE) (in Nos.)

iRs. in Lakh)1. Agra 5 10.75 1.25 2 2.002. Ahmadabad 3 6.45 0.75 2 2.003" Allahabad 1 2.15 0.25 1 1.004. Bangalore 3 6.45 0.75 2 2.005. Chennai 4 8.60 1.00 2 2.006. Cuttack 4 8.60 1.00 1 1.007. Delhi 2 4.30. 0.50 2 2.00 ",,-

8. Goa 1 2.15 0.25 1 1.009. Haldwani 1 2.15 0.25 1 1.0010. Hubli I 2.15 0.25 1 1.0011. Hyderabad 4 8.60 1.00 6 6.0012. Indore 4 8.60 1.00 2 2.0013. Jaipur 2 4.30 0.50 2 2.00 RAKE~~14. Jammu 1 2.15 0.25 2 2.00 Go, &.15. Kanpur 3 6.45 0.75 2 •dtt~'CIU' 0' , '2 \1',C'loIll1e e'16. Kamal 2 4.30 0.50 2 2.00~\'"""0"0' n,

17. Kolkata 6 12.90 1.50 2 2.00

~KUMARrector01India ,!.IediumEn\e~r.se$: Commr.(!.ISI.I£)NewDe\~i·\10 10S

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18. Ludhiana 4 8.60 1.00 3 3.0019. Mumbai 3 6.45 0.75 2 2.0020. Muzaffarpur 1 2.15 0.25 1 1.0021. Nagpur 4 8.60 1.00 1 1.0022. Patna 3 6.45 0.75 3 3.0023. Raipur 1 2.15 0.25 ., 1 1.0024. Ranch! 1 2.15 0.25 1 1.0025. Solan 1 2.15 0.25 1 1.0026. Thrissur 3 6.45 0.75 5 5.0027. Agratala 1 2.15 0.25 1 1.0028. Gangtok 1 2.15 0.25 1 1.0029. Guwahati 3 6.45 0.75 1 1.0030. Imphal 1 2.15 0.25 1 1.00

Total 74 159.10 18.50 55 55.00

2. Efforts should be made to select participants from SC, ST, OBC, PH, women & minoritycategories.

3. The funds are under the plan scheme and non-recurring in nature.

4. The MSME-Dls will keep separate account of utilization of these funds. The saving, if any is NOTTRANSFERABLE.

5. The assets acquired wholly or substantially out of these funds should not, without the prior sanctionof the Government of India, be disposed or encumbered or utilized for the purpose other than. that forwhich the funds have been sanctioned.

6. Director of MSME-DIs will send the progress report periodically /within one month after completionof the activity.

7. Director of MSME-DIs may use thd fund as per prescribed guidelines relating to theprograms. The ex pen d it u r e under the . sanction is m a xi mum. Saving, i f any, will besurrendered to the Govt.

8. The MSME-DIs should follow the procedure prescribed under GFR and the variousguidelines under the economy measures.

9. Activity-5: New Markets through State/District level local exhibitions/trade fa irs: Under thisactivity, the MSME cluster/units will be encouraged to participate in State/District level localexhibitions I trade fairs. The Government of India assistance will be in the form of reimbursement @Rs 2.40 lakh (Rs 2.15 lakh as subsidy to participating MSMEs + Rs 0.25 lakh as other administrativeex pen s e s fo r MSME-DIs) per exhibition/fair. The financial support will be to the extent of 50% ofexpenditure on admissible items under this activity i.e. charges for pavilion/stall I space 6 sq. meter,charges for to and fro actual fare by shortest distance/direct train (limited to AC-II tier) from the nearestRailway station/bus fare to place of exhibition for one person. For SC/ST/WomenlPhysicallyhandicapped entrepreneurs, the assistance will be upto 80% of the expenditure for the items stated above.The total reimbursement will be maximum of Rs. 30,000/- per unit for SC/ST womenlPhysicallyhandicapped entrepreneurs while for others, the maximum limit will be Rs. 20,000/- per unit. Anexpenditure up to Rs. 25,000/: per exhibition will also be, allowed on publicity, advertisement, furniture,audio -visual, TAlDA, etc., to be incurred by the MSME-DI concerned. The MSME-DI may drawadvance out ofRs. 25000/- either in full orpartly as per their need. One officer from concerned MSME-DIwill be allow.ed to accompany the participating entrepreneurs to the place of exhibition in case the no~ \. ""'~of MSMEs is not less than four. The applicant MSME unit will submit its claim along with require~documents to the concerned/ local MSME-DI office for reimbursement in the prescribed format. RAKESH KUMAR

. Oy. Director

10. Activity - 6: Corporate Governance Practices: Under the activity of Corporate Governance Pr~!~MJ;~~&~:d~~mEnleflMSME '11 b d d d . C:' • <-I..nl..'~ nevCommr.(t.\SI.

S WI e encourage to a opt goo corporate governance practices lor ImprovLngi.~ff1ii'~t~nNe~\Whi.\10

competitiveness, reducing operational factor, overcoming barriers to trade, successfully meeting theC;>-n'tJ./ -

-'3--

challenges of globalization and assessing lower cost of finance. GO! assistance will be in the form ofreimbursement up to 50% of the actual expenditure subject to a maximum of Rs 45,000/- per unit, whowould acquire company's structure by adopting corporate governance or Limited Liability Partnership(LLP) frame work. The admissible cost may cover, as applicable, the expenses towards the associatedconsultancy charges, expenditure on legal/statutory fee etc. The following norms for reimbursementunder Corporate Governance Practices to MSMEs to be followed .

• S.No. Activity-6 (Details) Amount to be considered forcalculating_ the GOI subsidy

i. Registration fees/Statuary fee. Max. 50% of expenditure will be consideredfor reimbursement.

II. Fees paid to Chartered Accountant Max. 50% amount as per the documentary(CA) and legal expert. evidence. Limited to Rs 25,000/-.Total amount due for GO! assistance will be subject to max. Rsreimbursement. 45,0001- per MSME unit.

11. Activity-8: Reimbursement to ISO 18000/22000/27000 Certification: In order to enhance the exportand marketing potential, under the activity of reimbursement to ISO 18000/22000/27000Certification, one time financial assistance will be provided to those MSME Manufacturing units whichacquire ISO 18000/22000/27000 Certification, on food and safety, health and IT parameters. TheGovernment of India assistance will be by way of one time reimbursement to the extent of 75% of theactual expenditure subject to maximum of Rs. 1.00 lakh in each case. The reimbursement of charges willbe towards consultant fee, certification fee, training of MSME employees in ISO adoption if required, etc.The amount of subsidylfinancial support if already received from the State Government/financialinstitutions shall be adjusted against the admissible reimbursement. The following norms for reimbursementunder ISO 18000/22000/27000 to MSMEs to be followed.

S.No. Activity-8 (Details) Amount to be considered forcalculatin_g_the subsil!Y

1. Payment made by MSME unit to Certifying Body Full Amount as per the(Excluding travel & h°trl expenses & documentary evidence.surveillance char_g_es)

2. Payment made by MSME unit towards (i) Limited to Rs. 40,000/- per case.Consultancy, (ii) Traini"!_g_and (iii) Calibration ,

Entitlement for reimbursement = 75%{ (1)+ (2)] limited to Rs. 1,00,000/-

The MSME units who will get certification from certification bodies accredited by National AccreditationBoard for Certification Bodies (NABCB) of Quality Council of India (QCI) are eligible forreimbursement for subsidy.

12. The expenditures shall be accommodated in Demand no. 58 Ministry of Micro, Small andMedium Enterprises (MSME) for the year 20 16-17 as follows:

Table-l (Subsidies)

S.No. Head Head No. DescrUltion1. Major Head 2851.00.102.97 Village and Small Industries, Small, Scale Industries2. Object Head 97.01.33 . MDA Programme; Marketing .,

Assistance & TechnologyU_rgradation -Subsidies

BE for Subsidies for the year 215.00 Lakh2016-17 , r-.Amount of Present Sanction 214.10 Lakh ~ ~Total allocation including 214.10 Lakh - 'v O'j.Oi~O~2_resent sanction Go'4\.oi India rS6

~ma\1 &.Medium ~~Balance available for 0.90 Lakh "" ()I11c;e01 llIe oe'N;'oei~i-11Q 10eX_Qenditure lIir1\'.ar,BMwan,

'>0">'1 +<::r' 1-"-

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Table-2 (OAE -General)

S.No. Head Head No. Descriptionl. Major Head 2851.00.1 02.97 Village and Small Industries, Small

Scale Industries ,2. Object Head 97.0l.20 MDA Programme; Marketing

Assistance & TechnologyUpgradation -Subsidies

BE for OAE -General(ONER) 30.00 Lakhfor the year 2016-17Amount of Present Sanction 18.50 LakhTot,al allocation including 18.50 Lakhpresent sanctionBalance available for 1l.50 Lakhexpenditure

13. Noted at Serial 01 in the Register of Grants.

14. This sanction issues in exercise of the powers delegated to the Head of Department in consultationwith I.F. Wing Vide their Dy. No. 5371F-l/10 dated 04.10.2010 under the object head OAE.

15. This issues with the concurrence of Integrated Finance Wing Dy. No. 207IUS (Fin-II)/16dated 23.05.2016 under the object head Subsidy.

'\.__~ ---­~\-f

Copy for information & necessary actioh to:

(Rakesh Kumar)Deputy Director (NMCP)

RAKESH KUMA.ROy, DirectorGo'll. 01India ,

MI M'em Small & MediumEn\erjlnsesoo,~clilie Oev,Commr, (MSME)NirmanSnawan, Ne'ollDelhi-110108

1. The Director, MSME-DIs (30 Nos.) concerned as mentioned above.2. The Drawing & Disbursing Officer, Office of DC (MSME), New Delhi.3. under Secretary, IFW, Ministry ofMSME, Udyog Bhawan, New Delhi4. B&A Section, Deptt. OfIP&P, Udyog Bhawan, New Delhi5. B&A Section Office of DC (MSME), Nirman Bhawan, New Delhi.6. Planning Division, Office of DC (MSME), Nirman Bhawan, New Delhi.7. Principal Director of Audit, Economic and Service Ministry, AGCR B,ldg., I.P. Estate, Delhi8. MSME-DI Division, Office of DC (MSME), Nirman Bhawan, New Delhi9. Director (SENET), % DC (MSME), New Delhi with a request to upload on official website10. Guard File

~(Rakesh Kumar)

Deputy Director (NMCP)

RAKESHKUMARDv, QirectorGO'll. of India

1.110Micro, Small& MediumEnlerjlf,sesOffice of Ilie De,_ Commr. (MSME)Nirman Shawan, NewDelhi-110108