MSME’s have a very important role to play in the economy of the country like India. The development of MSME’s is essential to meet the national imperatives of financial inclusion and generation of significant levels of employment opportunities across urban and rural areas of the country. Further, the sector can nurture and support the development of new age entrepreneurs who have the potential in them to create competitive businesses at the global level. As the Start up India Scheme was announced, eligible companies can get recognised as Startups by DPIIT, in order to access a host of tax benefits, easier compliance, IPR fast-tracking & more.
For more information also read – https://smeventure.com/initiatives-under-the-atmanirbhar-bharat-package/
The Government of India has envisioned the role of entrepreneurship as an integral element in achieving rapid and robust economic growth and as a part of it, ‘Stand up India’ and ‘Start up India’ Schemes were announced. The entrepreneurs belonging to the marginalized minorities such as the SC/ST are to be given more support to ensure that the benefits of growth spreads across all levels evenly and thus the procurement activities of the public sector are made more inclusive and participative by the government. This is exactly where the role of Start up India scheme for SC-ST comes into play.
In this regard, the “Public Procurement Policy for MSEs” mandates that Central Government Ministries, Departments, and Public-Sector Undertakings procure a minimum of 25% of their total annual value of goods or services from Micro and Small Enterprises including 4% of total procurement of goods and services from Micro and Small Enterprises owned by SC & ST entrepreneurs and 3% of total procurement of goods and services from Micro and Small Enterprises owned by women entrepreneurs.
Do watch – https://www.youtube.com/watch?v=tAIgl3–BUc
National SC & ST Hub Structure :
The Stand Up India Scheme launch date is 15th of April 2016. The scheme is applicable from the date of sanction till 31.03.2026. The Stand up India Scheme is facilitated through the Department of Financial Services (DFS), Ministry of Finance, Government of India. The Hub operates out of the National Small Industries Corporation (NSIC) headquartered in Delhi, supported by a special cell created for this purpose. Three committees have been formulated that help in the functioning of the Hub:
1.) High Powered Monitoring Committee.
2.) Advisory Committee.
3.) Project Screening Committee.
NSSH Cell :
National SC-ST Hub (NSSH) scheme of Ministry of MSME is implemented by National Small Industries Corporation (NSIC). An NSSH Cell created by NSIC to perform day to day operations related to execution of the scheme and is headed by a Senior GM level officer. The NSSH cell is reporting to Functional Director-NSIC, who is in turn reporting to CMD-NSIC.
The following are the revised guidelines of the national hub scheme:
1.) SPECIAL CREDIT LINKED STAND UP INDIA SCHEME SUBSIDY FOR TECHNOLOGY ENABLEMENT OF SC/ST MSES:
a.) The scheme would cover SC/ST MSEs of manufacturing and service sectors.
- b) The scheme would cover the purchase of new plant & machinery and equipment through Stand up India Scheme loan from Prime Lending Institutions (PLIs) for all manufacturing sectors and service sectors as brought out in the National Industrial Classification (NIC) code respectively on which banks/financial institutions are offering business loans, subject to consent/NOC from Pollution Control Board (wherever applicable).
2.) CAPACITY BUILDING AND TRAINING PROGRAMS :
a.) NSQF compliant courses shall be considered under NSSH.
b.) The cost of both residential and non-residential training programs would be determined as per the most recent notifications regarding Common Norms issued by the Ministry of Skill Development & Entrepreneurship, Govt. of India. Cost will include the cost of overheads such as motivational camps for selection of eligible candidates, charges towards hiring of space / equipment (if any), electricity/ water, stationary, man-hour cost of deployment of project personnel, post training follow-up activities etc.
c.) The training programs are to be conducted by the approved institutions at their head quarter and extension centers where the infrastructure is owned/ managed by the institutions.
d.) The training program allocated to an institution cannot be outsourced to any other third party.
e.) The toolkits necessary for training programs will also be given. The maximum limit on cost of toolkit is Rs. 50,000/- (including GST) per toolkit / candidate.
3.) SUPPORT FOR ENHANCING COMPETITIVENESS THROUGH VARIOUS INTERVENTIONS/SUB-SCHEMES :
a.) Reimbursement of Bank Loan Processing Fee.
b.) Reimbursement of Bank charges for Performance Bank Guarantee.
c.) Testing Fee Reimbursement.
d.) Reimbursement of membership /subscription/entry fee of Export Promotion Council.
e.) Reimbursement of Course Fees to Top 50 NIRF Rated Management Institutions for short term training of SC/ST entrepreneurs.
f.) Reimbursement of membership in Government promoted E-Commerce Portals.
g.) Reimbursement of Single Point Registration Scheme.
4.) SPECIAL MARKETING ASSISTANCE SCHEME (SMAS) FOR SC/ST ENTREPRENEURS :
a.) Organizing Visit to International Exhibitions/Trade Fairs/Seminars Abroad.
b.) Participation in International Exhibitions/Trade Fairs Abroad.
c.) Organizing Visit to Domestic Exhibitions/Trade Fairs.
d.) Participation in Domestic Exhibitions/Trade Fairs.
e.) Vendor Development Programmes.
f.) Organizing Workshops/Seminars/Awareness Campaigns.
Benefits of Stand up India scheme for SC-ST :
When the Government came up with the Stand up India Scheme loan, it’s main aim was to benefit the citizens and the same is the case with the Stand Up India scheme. The basic aim of this initiative is to provide encouragement and motivate new entrepreneurs so as to minimize the rate of unemployment. They also provide post setup aid to consultants.
Start up India Scheme under the Ministry of Finance will help eradicate the legal, operational and other institutional obstacles for entrepreneurs as well. It can be a very positive boost in terms of job creation, leading to socio-economic empowerment of Dalits, tribals and women. It may also act as an ongoing force for other Government schemes like ‘Skill India’ and ‘Make in India’.
Thus, it helps in protecting the demographic dividend in India with the access to bank accounts and technological education, leading to financial and social inclusion of these strata of the Indian society.