In combination with the existing sub-schemes for incubation, design, and IPR for MSMEs, the MSME ministry launched the MSME Innovative Scheme. The scheme was launched on 10-03-2022. The new scheme would act as a hub for innovation activities facilitating and guiding the development of ideas into viable business propositions that can benefit society directly and can be marketed successfully, the ministry said at the launch. Along with the new scheme, the existing 3 schemes of incubation, design, and IPR will continue to co-exist.
Prime Minister Narendra Modi believes India can become atmanirbhar, create employment, boost entrepreneurship, adopt new technologies, enhance GDP and exports through MSMEs. We have announced the MSME Innnovative Scheme in that direction to support different MSME ideas. Our enterprises should also endeavour to achieve high growth in manufacturing the way businesses in countries like the US and China have achieved. This new scheme will ensure support through guidance, financial support, technical support, and more to MSMEs to scale up
MSME Minister Narayan Rane said at the launch of the scheme.
The MSMEs that seek validation of their ideas at the proof-of-concept stage will be encouraged to adopt the latest technologies. This mandate will be handled by the existing Incubation scheme working for the MSMEs. ‘Shorlisted Institutions’ recognised by the MSME ministry will act as business incubators for early-stage ideas. The Incubation scheme also has a provision for providing financial assistance to these Host Institutions. The assistance can be upto Rs. 15 Lakh per idea to them, this is over and above the support for procuring plant and machinery for MSME. The assistance for P&M can go upto Rs. 1 Crore.
As part of the incubation scheme, the government also announced the launch of an MSME Idea Hackathon to invite ideas from MSMEs, innovators, and students through host institutes from March 10 to March 24, 2022.
For the betterment of the design vision of the startup community, the Design Scheme would provide financial assistance and mentoring to evolve design concepts for new product development as well as solve the design problems of the existing products. The partner institutions under the scheme are IISc Bangalore, IITs, National Institute of Technology, National Institute of Design, and others.
Students selected and participating in the scheme can get the assistance of 75 percent of the total project cost or up to a maximum of Rs 2.5 lakh. Micro enterprises would have access to 75 percent of the total project cost while small and medium businesses would be provided with 60 percent financing or up to a maximum of Rs 40 lakh per project.
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IPR, the third scheme of the Innovative scheme would take measures to enable the MSMEs to protect their ideas and commercialisation of the same through advisory and consultation. Under this scheme, MSMEs are eligible for reimbursement of the cost incurred on registration of patent, trademark, geographical indications (GI), and design. The maximum assistance would be Rs 5 lakh in case of a foreign patent, Rs 1 lakh for a domestic patent, Rs 2 lakh for GI registration, Rs 15,000 for design registration, and Rs 10,000 for trademark.
The government also announced equity support of up to Rs 1 crore for commercialisation of ideas, designs, and patents across all three sub-schemes and also to help MSMEs further scale up to raise subsequent funding. For this, a separate corpus will be created and managed by SIDBI as the fund manager.