Assignment 8

Compile the information from government agencies that will help you to setup a
business enterprise.

Government schemes in India are designed to empower entrepreneurs by providing accessible

capital at subsidized rates, fostering innovation, and supporting economic growth. These initiatives
cater to a wide range of industries and demographics, offering financial assistance, infrastructure
support, and mentorship to help individuals realize their business dreams. Building on the sample
content provided (MUDRA, NABARD, CGTMSE, Stand Up India, NewGen IEDC, and AIC), I
have compiled information on additional government agencies and schemes that can further assist
in setting up a business enterprise. Below is a detailed overview of five more schemes, followed by
a conclusion.

1. Startup India Initiative

Overview: Launched in 2016 by the Government of India under the Department for Promotion of
Industry and Internal Trade (DPIIT), Startup India is a flagship program aimed at promoting
entrepreneurship and innovation. It supports startups through tax benefits, funding, and simplified
compliance.

Key Features:
Offers a 3-year tax holiday for DPIIT-recognized startups in the first 10 years of operation.
Provides access to a Fund of Funds with a corpus of ₹10,000 crore, managed by SIDBI, to invest
in venture capital firms supporting startups.
Fast-tracks Intellectual Property Rights (IPR) applications with subsidized fees.
Collateral-free loans up to ₹10 crore under the Credit Guarantee Scheme for Startups (CGSS).
Eligibility: Startups must be registered as a Private Limited Company, LLP, or Partnership Firm,
incorporated within the last 10 years, with a turnover not exceeding ₹100 crore, and must be
working on innovation or scalable business models.

Why It Helps: The tax exemptions and funding support reduce financial burdens, while IPR
assistance protects innovative ideas, making it ideal for tech-driven or creative startups.

Application: Apply via the Startup India portal (www.startupindia.gov.in).

2. SIDBI Make in India Soft Loan Fund for MSMEs (SMILE)

Overview: Managed by the Small Industries Development Bank of India (SIDBI), the SMILE
scheme supports the "Make in India" campaign by providing soft loans to Micro, Small, and
Medium Enterprises (MSMEs) for establishment, expansion, or modernization.

Key Features:
Offers loans starting at a minimum of ₹10 lakh for equipment financing and ₹25 lakh for other
purposes.
Quasi-equity and term loans with soft terms (e.g., lower interest rates and longer repayment
periods up to 10 years, including a 3-year moratorium).
Focuses on 25 identified sectors, including manufacturing and services.

Eligibility: New enterprises in manufacturing or services, as well as existing MSMEs undertaking

expansion, modernization, or technology upgrades.
Why It Helps: The soft loan terms and extended repayment period ease the financial strain on new
businesses, while supporting the adoption of advanced technology for competitiveness.

Application: Approach SIDBI directly or through partner financial institutions.

3. Credit Linked Capital Subsidy Scheme (CLCSS)

Overview: Administered by the Ministry of Micro, Small and Medium Enterprises (MSME),
CLCSS facilitates technology upgradation for MSMEs by providing capital subsidies on loans
taken for purchasing new machinery or equipment.

Key Features:
Provides a 15% upfront capital subsidy (up to a maximum of ₹15 lakh) on loans for eligible
equipment.
Covers 51 sub-sectors, including manufacturing, food processing, and textiles.
Loans can be availed from scheduled commercial banks, NBFCs, or SIDBI.

Eligibility: MSMEs (sole proprietorships, partnerships, or companies) in specified sectors

investing in technology upgradation.

Why It Helps: By reducing the cost of acquiring modern equipment, CLCSS enhances
productivity and competitiveness, making it valuable for manufacturing or processing startups.

Application: Apply through nodal banks or financial institutions listed on the MSME website
(www.msme.gov.in).

4. ASPIRE (A Scheme for Promotion of Innovation, Rural Industries, and

Entrepreneurship)
Overview: Introduced in 2015 by the Ministry of MSME, ASPIRE aims to promote
entrepreneurship in rural and agro-based industries by setting up incubation centers and providing
financial support.

Key Features:
Funds Livelihood Business Incubators (LBIs) and Technology Business Incubators (TBIs) with
grants up to ₹100 lakh per incubator.
Offers a one-time grant of ₹3 lakh to entrepreneurs for setting up ventures post-incubation.
A Fund of Funds of ₹312.5 crore managed by SIDBI supports agro-based startups.
Eligibility: Entrepreneurs, institutions, or startups focusing on rural industries, agriculture, or
allied sectors.

Why It Helps: ASPIRE provides both financial and infrastructural support, along with
mentorship, making it ideal for rural entrepreneurs or agro-based businesses.

Application: Apply through recognized incubators or the MSME portal.

5. National Small Industries Corporation (NSIC) Schemes

Overview: The NSIC, a government enterprise under the Ministry of MSME, supports MSMEs by
offering financial, marketing, and technology assistance through various schemes.

Key Features:
Raw Material Assistance Scheme: Provides credit up to ₹2 crore against bank guarantees for
purchasing raw materials.
Single Point Registration Scheme (SPRS): Facilitates MSME participation in government tenders
with fee exemptions.
Performance and Credit Rating Scheme: Subsidizes credit rating costs (up to 75%) to improve loan
eligibility.
Loans up to ₹5 crore with flexible terms through tie-ups with banks.

Eligibility: Registered MSMEs engaged in manufacturing or service activities.

Why It Helps: NSIC’s schemes address multiple startup needs—finance, raw material
procurement, and market access—making it a versatile option for small enterprises.

Application: Register on the NSIC website (www.nsic.co.in) or visit regional offices.

6. Pradhan Mantri Employment Generation Programme (PMEGP)

Overview: Managed by the Ministry of Micro, Small and Medium Enterprises (MSME) and
implemented through the Khadi and Village Industries Commission (KVIC), PMEGP is a
credit-linked subsidy scheme launched in 2008 to generate employment through self-employment
ventures.
Key Features:
Provides subsidies: 25% in rural areas and 15% in urban areas (35% and 25% respectively for
special categories like SC/ST/women) on project costs up to ₹50 lakh for manufacturing and ₹20
lakh for service units.
Loans facilitated through banks with a margin money subsidy from the government.
Targets micro-enterprises in rural and urban areas, including manufacturing, services, and
agro-based industries.

Eligibility: Individuals above 18 years, SHGs, and institutions registered under Societies
Registration Act, starting new projects (not applicable to existing units).

Why It Helps: Offers financial assistance and subsidies to start micro-businesses, reducing the
initial investment burden and promoting job creation.

Application: Apply online via the PMEGP e-portal (www.kviconline.gov.in/pmegp).

7. Department of Science and Technology (DST) - NIDHI Program

Overview: The National Initiative for Developing and Harnessing Innovations (NIDHI), under the
DST, supports innovation and entrepreneurship by providing funding, incubation, and mentorship
to tech-driven startups.
Key Features:
NIDHI-PRAYAS: Grants up to ₹10 lakh for prototype development.
NIDHI-EIR (Entrepreneur-in-Residence): Fellowship of ₹20,000–30,000 per month for one year to
budding entrepreneurs.
NIDHI-SSS (Seed Support System): Seed funding up to ₹1 crore for early-stage startups through
incubators.
Focuses on technology-based ventures in sectors like healthcare, energy, and IT.

Eligibility: Innovators, startups, and students with technology-driven ideas; must be incubated at
DST-recognized centers.

Why It Helps: Bridges the gap between ideation and commercialization with financial and
infrastructural support, ideal for tech startups.

Application: Apply through DST-approved incubators listed on www.nidhi.gov.in.

8. Export Promotion Council of India (EPCI) - Market Access Initiative (MAI)

Overview: Managed by the Ministry of Commerce and Industry, the MAI scheme, through various
Export Promotion Councils (e.g., EEPC India, FIEO), supports exporters and businesses aiming to
penetrate international markets.

Key Features:
Reimburses costs for export promotion activities like trade fairs, buyer-seller meets, and market
studies (up to ₹50 lakh per event, depending on scale).
Provides assistance for obtaining certifications, branding, and export logistics.
Focuses on MSMEs and new exporters in sectors like engineering, textiles, and agriculture.
Eligibility: Registered exporters, MSMEs, and export-oriented units; must be members of an
Export Promotion Council.

Why It Helps: Enables businesses to expand globally by offsetting export-related expenses,

crucial for ventures targeting international growth.

Application: Apply through respective councils (e.g., www.eepcindia.org or www.fieo.org).

9. Technology Development Board (TDB)

Overview: Established under the Department of Science and Technology in 1996, TDB provides
financial assistance to Indian companies for developing and commercializing indigenous
technology.

Key Features:
Offers equity, soft loans, or grants up to 50% of project costs (typically ₹1 crore–₹50 crore).
Supports sectors like biotech, electronics, renewable energy, and advanced manufacturing.
Partners with venture capital funds and incubators for co-funding.

Eligibility: Indian companies (public/private) with innovative technology projects having

commercial potential.

Why It Helps: Funds R&D and technology adoption, enabling businesses to innovate and
compete globally, especially in high-tech industries.

Application: Submit proposals via www.tdb.gov.in.

Conclusion
The government agencies and schemes outlined above—Startup India Initiative (DPIIT), SMILE
(SIDBI), CLCSS (Ministry of MSME), ASPIRE (Ministry of MSME), and NSIC—complement
the earlier mentioned programs (MUDRA, NABARD, CGTMSE, Stand Up India, NewGen IEDC,
and AIC) to provide a robust ecosystem for setting up a business enterprise in India. These
schemes collectively offer subsidized funding, collateral-free loans, technology upgrades,
incubation support, and market access, catering to diverse sectors like manufacturing, agriculture,
technology, and rural industries. Whether you’re launching a tech startup, a rural venture, or an
MSME, these initiatives provide the financial backbone and resources needed to succeed. To
proceed, identify your business sector, assess eligibility, and apply through the respective agency
portals or partnered financial institutions for tailored support.