Introduction to the list of Government subsidies for small businesses
Are you aware of all the schemes and subsidies provided by the Government of India for small-scale businesses? You can have look here to get all the details.Â
A guide for subsidies provided by the Government of India for small businesses
To support the normal working of the industries in small sector groups, the central government has notified the launch of the new subsidy program. This new program provides the best support to new and existing entrepreneurs in India. This will support small scale industries to progress and the state and central government will take care of new implementations regularly. The new implementations are made to MSMEs and here we have listed some of the details along with department list of all such subsidy schemes by the government.
MSME- Credit Guarantee Fund Scheme (CGFY)
The central government had initiated the CGMSME (Credit Guarantee- MMSME) scheme. The government will provide a collateral-free loan as credit for MSME units. Both existing and new entrepreneurs can avail of the benefit of this scheme. A trust for funding the scheme – CGFT (Credit guarantee fund trust) was shaped by the central government. The trust is accountable for communicating with both Banks and MSMEs for operation.
Under the scheme, the government will lend beneficiaries with credit as capital loans. A total sanction amount of Rs 100 crore will be provided to beneficiaries by the government. Central and SIDBI will fund in 4:1 ratio.
Subsidy for organic farms
The scheme was implemented in the entire nation by the government. The government will offer a subsidy to different sectors in biofertilizer, organic farms, and natural commercial products. NABARD and NCDC will be accountable for monitoring the release of the funds. The funds will be provided only after proper approval by the DAC.
Fifty percent coverage is provided by the government in the scheme. This amount will be provided to the banks in the form of reserve funds. Later on, the bank will send it to the candidate.
Government subsidy for dairy farm
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NABARD shall help progress the dairy industries under this subsidy. Support will also be offered to milk and animal produce businesses. The subsidy will be provided to units that are involved in producing gobar gas, animal feeds, agricultural products, and even animal products.
Technology upgrading funding Yojana for Textile Industry (TUFS)
Textile Ministry had announced the execution of this scheme for enhancing the textile industry sector. Under this scheme, it is projected that the Jute industry will be included.
The scheme to be executed was introduced at the beginning of April 1999. Under the scheme, the government aims at the modernization of textile industries and machinery, and currently, each beneficiary is entitled to avail reimbursement of 5 percent. The government provides reimbursement on interest rate along with a difference of 5 percent that is calculated based on fluctuation that is given by FCL.
A 15 percent subsidy will be offered as credit while 20 percent credit is given to loom sectors. 5 percent and 10 percent subsidy are provided by the government on interest and capital reimbursement for equipment.
Food processing sector scheme – Upgradation, Establishment, and Modernization
The scheme was implemented to support the food processing units. It will also provide benefits for other sectors such as Milk, Fishery, Agricultural, Poultry farming, and meat industries.
Assistance for mushrooms, food product, and flavor improvement will be provided under this scheme. A 25 percent subsidy will be provided by the government against equipment with the assistance of around Rs. 50-75 lakhs.
Leather industry improvement scheme
Subsidy benefits will be provided to leather accessories industries, tanneries, and even for the leather industry. Subsidy amount can be utilized to upgrade already existing units and even for new units along with capital. The beneficiaries are asked to submit a registration copy of the plant along with NOC documents.
The subsidy will be issued for existing units by the government and it will be provided only after all documents are submitted properly.
Capital linked and Upgradation of technology scheme for credit (CLCSS)
For any establishment, it is very essential to operate, upgrade, and development from time to time. This will support to reduce the operation cost and promote their brand name in the current market.
SSI Ministry will aid to regulate the scheme implementation and the amount can be used for upgrading previously established units. This will aid the enhancement at the production level. Capital credit will be presented to the entrepreneurs by CLCSS along with a 15 percent subsidy with a margin not exceeding Rs. 15 lakhs in value.
The fund can be utilized for upgrading the already existing machinery and plant units. Any unit either a big or small along with a limited sector can get the subsidy.
MSME market development scheme
Under this scheme, financial assistance is delivered to the MSMEs for taking part in the trade fair and exhibitions. Entrepreneurs can grab this opportunity to join the international trade fair and exports oriented fairs. The government will support with 75 percent annual fee or registration fee, in the form of reimbursement. The government will do the payment to GSI directly for three years.
Technology and quality upgrading MSME scheme for support
This scheme stands advantageous to the MSME sector for advancement and refining technology for better quality. All benefits that are provided will be for ISO14001 units and ISO certified units that are registered with the government.
The subsidy can be utilized to improve the production quality, upgrading the units for enhancing technology thereby increasing production along with enlargement in the international and local markets.
Government subsidies for small businesses by NSIC
NSIC will assist in marketing and material acquisition subsidy. Candidates can make use of this fund for buying raw materials for their business. Entrepreneurs could use it for importing raw materials. They can also use it for refining the quality of production. NSIC will also provide support for the marketing of products for medium, small, and micro sectors.
Small scale unit cold chain subsidy
The government will provide complete support to the cold chain industries for market coverage and improvement of their units. Already existing infrastructure can be enhanced by making use of this subsidy for new as well as old companies.
The fund can be used for modifying reefer vans, coolers, and cooling units. The government will provide funds for processing units, poultry units, organic industries, marine industries, meat industries, and collection centers. All groups that come under FPO, NGO, and SHG are qualified to avail of the benefit of this scheme.
Technology Mission On Coconut (TMOC) for coconut producing units
The Coconut development board will provide support for improving technology for production (TMOC). Any individual who plans to set up a coconut production unit can avail of the advantages of this scheme. The guidance will be provided by the government for exchanging technology associated information to the individual. Assistance will be given to the individual who desires to establish coconut associated products such as oil, tender water, milk, and powder industry.
Marine-Agro processing scheme SAMPADA
This is a government scheme meant for marine products and agro-processing units. It will provide complete support to current and old plants. The government has placed a budget of Rs. 6000 crore for this scheme which can be availed by farmers for amplifying their earnings and eliminating wastage of food produce.
Small business scheme for Horticulture subsidy
NHB was launched to implement advanced technology for harvest management and horticulture. Subsidies will also be provided for market development, product promotion, infrastructure improvement.
Tool room and training center scheme
A subsidy will be provided by the government for a refining training center and tool room that is a state government-owned. The government will provide one-time assistance which is equivalent to around Rs. 9 crores or 90 percent as a part of the subsidy. The fund can be utilized for upgrading previous units and tool rooms. Amount offered will be about Rs. 7.50 crore of 75 percent of the total cost.
The government will make sure that enhanced facility is given in tool rooms which are established in the state to provide support to small and medium-scale factories. It will also assist in providing better job vacancies for both unskilled and skilled laborers, designers, and engineers.
That’s all folks about Government subsidies for small businesses in India, we wish you good luck. In case if you are interested in this: Low-cost Agriculture Business Ideas for Beginners.