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Launched on June 1, 2020, by Prime Minister Narendra Modi, the MSME CHAMPIONS scheme is an online portal/platform designed to help micro, small and medium business owners with numerous resolutions, redressals and remedies in various ways.
Introducing the MSME CHAMPIONS scheme
The MSME CHAMPIONS scheme was started by the MSME Ministry, the MSME CHAMPIONS scheme is a one-stop solution that brings together various supports and aids to help small and medium businesses grow and succeed from 2021 to 2026. Here are its main parts:
- Existing schemes
- New schemes
- Schemes for starters
- MSME Sustainable (ZED)
- MSME Innovative (covering incubation, IPR, Design)
- MSME Competitive (Lean)
MSME CHAMPIONS program details: What You Need to Know
Regarding MSME CHAMPIONS Program Details, the focus is not just on financial assistance but also on fostering innovation, upgrading technical skills, and enhancing global competitiveness. The MSME CHAMPIONS scheme encompasses a variety of other schemes for MSME, start-ups, etc. These include the Prime Minister’s Employment Generation Programme (PMEGP), Credit Guarantee on Loans to Micro and Small Enterprises and New Entrepreneurs, Gram Udyog Vikas Yojna, and Entrepreneurship and Skill Development Programme (ESDP). Let’s have a closer look at some of the prominent schemes under MSME CHAMPIONS:
Prime Minister’s Employment Generation Programme (PMEGP)
The scheme provides subsidies on project costs, varying by category and location, to facilitate the establishment of manufacturing, service, and trading units.
- Eligibility criteria
Target beneficiary: Unemployed rural and urban youth, including special categories such as SC/ST/OBC/ Minorities/Women/ NER/Hill Areas.
Age criterion: Above 18 years.
Budget (FY 20-21): ₹ 2500 crores
Project cost: Varies for manufacturing, service, and trading sectors, with provisions for special regions.
Subsidy: Graded subsidies are available based on the project location and applicant category.
Entrepreneur contribution: Between 5% and 10% of the project cost.
- How to apply
Online Application: Through KVIC portal
Support: Assistance available from various governmental organisations.
Training: Mandatory Entrepreneurship Development Programme (EDP) training post loan sanction.
Gram Udyog Vikas Yojna (GVY)
This scheme aims to assist artisans, unemployed youth, and Self-Help Groups. The primary focus is on enhancing skills in the traditional arts and crafts sectors. The Khadi and Village Industries Commission (KVIC) provides specialised skill development programmes, followed by the distribution of tools and kits to set up micro/small units.
- Eligibility criteria
Target beneficiaries: Artisans, unemployed youth, and SHGs.
Condition: Persons with knowledge and skill experience in art and craft.
Assistance Areas: Numerous sectors including mineral-based industry and forest-based industry are covered.
Training: Skill development and practical training on tool and equipment handling.
Distribution: Tool and kit distribution post-training.
Credit Guarantee on Loans to Micro and Small Enterprises and New Entrepreneurs
- Eligibility criteria
Target beneficiary: Existing and aspiring entrepreneurs in micro and small enterprises.
Guarantee: Credit guarantee up to ₹ 2 crores without collateral and third-party guarantee.
Implementation: By the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
Coverage: Ranges from 50% to 85%, depending on various factors including the region and nature of the enterprise.
- How to apply
Collaborating banks: Several banks, NBFCs, and small finance banks offer this facility.
4. Entrepreneurship and Skill Development Programme (ESDP)
This program aims to teach an entrepreneurial culture among the youth, with a focus on capacity building of existing MSMEs. The initiative includes a variety of training modules such as Industrial Motivation Campaigns (IMCs), Entrepreneurship Awareness Programmes (EAPs), and Entrepreneurship-cum-Skill Development Programme (E-SDP).
How is the MSME CHAMPIONS scheme beneficial for MSMEs?
In a rapidly evolving business landscape, Micro, Small, and Medium Enterprises (MSMEs) often find themselves navigating through myriad challenges. At this juncture, the MSME-CHAMPIONS scheme comes to the fore as a robust support system offering a range of benefits that can potentially transform the fate of MSMEs. Here, we delve deeper to understand the multifaceted ways in which the scheme empowers MSMEs.
- Problem resolution with efficiency
The scheme ensures that the grievances of MSMEs are addressed promptly and effectively, thereby providing a reliable platform for resolving issues without any delays. It means less downtime and more productivity for businesses.
- Seamless navigation through sovernment schemes
Understanding and leveraging the various government schemes and policies can be quite a daunting task. The MSME-CHAMPIONS scheme assists businesses in easily navigating through these schemes, helping them to benefit from the available opportunities.
- Expert guidance and advisory services
Whether it’s finance, marketing, technology, or any other area, the scheme offers guidance and advisory services to help MSMEs make well-informed decisions. This not only fosters growth but also ensures sustainability in the long run.
- Enabling connections with key stakeholders
Creating the right connections can often be a game-changer for businesses. The scheme plays a pivotal role in connecting MSMEs with the key officials of various government bodies, lending institutions, and agencies, paving the way for fruitful collaborations.
- Knowledge dissemination
The MSME-CHAMPIONS scheme acts as a hub for all vital information related to the Ministry of MSME’s initiatives and schemes. It keeps businesses updated, helping them to seize new opportunities and stay ahead in the competition.
- Linguistic diversity
In a diverse nation like India, language can often be a barrier to accessing information. The portal addresses this by offering information in eleven regional languages, thereby reaching a wider audience and facilitating inclusivity.
- Nationwide reach
With the facilitation from 69 state control rooms across the nation, the scheme ensures a wide-reaching impact, enabling MSMEs from different parts of the country to benefit from the initiatives.
- Handholding new entrepreneurs
For budding entrepreneurs, starting a business can be an overwhelming experience. The scheme provides handholding support, helping them to steer clear of common pitfalls and build a successful enterprise.
- Boosting competitiveness
By promoting technology adoption and fostering innovation, the scheme aims to enhance the competitiveness of MSMEs in the national as well as global markets.
- Capacity building
The scheme goes a long way in building the capacity of MSMEs in various spheres including infrastructure and labour, ensuring a stable and growth-oriented trajectory for businesses.