Launch of MSE-GIFT and MSE-SPICE Schemes

A number of initiatives have been taken by Ministry of Micro, Small and Medium Enterprises for creating an enabling environment for MSMEs. Government has a policy priority to ensure timely and adequate finances, relevant technologies and appropriate training for MSMEs. Some of the initiatives taken by Government include the following:

• Collateral free loan up to a limit of Rs. 500 lakh (w.e.f. 01.04.2023) to micro and small enterprises.
• Rs. 50,000 crore equity infusion through Self Reliant India Fund for providing growth capital to the deserving and eligible units of MSME sector.
• Under Prime Minister’s Employment Generation Programme, credit linked subsidy for setting up new micro-enterprise in non-farm sector is provided. Margin Money subsidy ranging from 15% to 35% of project cost, for projects up to Rs. 50 Lakh in manufacturing sector and Rs. 20 Lakh in the service sector, is provided. For beneficiaries belonging to Special categories, including women,  Margin Money subsidy is 35% in rural areas and 25% in urban areas.
• Under the Tool Rooms & Technical Institutions, Ministry of MSME has set up 18 Tool Rooms & Technical Institutions known as Technology Centres (TCs) in the sectors like general engineering, automation, hand tools, plastics, auto parts, electrical & electronics, forging & foundry, sports goods, leather & footwear, fragrance & flavors, etc. to support MSMEs with the relevant technologies. Apart from the technological development activities, TCs provide skilling to youth and re-skilling the working manpower of the industry.
• The Entrepreneurship and Skill Development Programme (ESDP) Scheme aims to support young persons representing different sections of the society including SC/ST women, physically handicapped, Ex-servicemen, and BPL persons to consider self-employment or entrepreneurship as one of the career options.
• Further Ministry of MSME has launched MSE Green Investments and Financing for Transformation (MSE-GIFT) and MSE Scheme for Promotion and Investment in Circular Economy (MSE-SPICE) Schemes on 20.12.2023 that align with the ‘Panchamrit’ goals.

1. MSE-GIFT Scheme has an objective to provide institutional finance to MSEs at a concessional cost to minimize or overcome the incremental cost of clean/green technologies coupled with adequate technical handholding support for adopting environment sustainable projects and climate change adaptation and mitigation technologies while ensuring growth and competitiveness of MSMEs. Projects like production of energy from renewable sources, clean transportation that involve lower greenhouse gas emissions; energy-efficient projects like green building; waste management that include recycling, etc. are included the Scheme.
2. MSE-SPICE has a primary goal to promote resource efficiency, reduce environmental impact, and enhance the competitiveness of MSEs. Eligible MSEs are eligible for 25% capital subsidy on the cost of plant and machinery, subject to a cap of Rs. 12.5 lakh per MSE.

MSMEs play a crucial role in driving economic growth, innovation, and employment generation. Through the above measures, the goal of Viksit Bharat 2047 through MSME sector is expected to be achieved. The fund sanctioned for MSE-GIFT and MSE-SPICE Schemes are Rs. 478 crore and Rs. 472.5 crore for years 2023-26 and 2023-27, respectively.