Guidelines: Promotion of Msmes in Ne Region and Sikkim

Guidelines for Central Sector Scheme “Promotion of MSMEs in N.E.
Region and Sikkim”
1. Introduction:
The Ministry of MSME is working for development of MSMEs in the country. With a focus for
development of MSMEs in North Eastern Region & Sikkim a special scheme for ‘Promotion of
MSMEs in North Eastern Region and Sikkim’ was approved on 02.08.2016. The scheme was
made a component of new Central Sector Scheme “Technology and Enterprise Resource Centres”
formulated on 16.01.2018. The operational guidelines of the scheme component were revised and
issued on 15.01.2019. Impact of COVID-19 pandemic on MSME-Sector and various initiatives of
Govt. of India such as ‘Atma Nirbhar Bharat Abhiyan’, ‘Vocal for local to Global’ and “Zero
effect to Zero defect” and Act East Policy to boost indigenous manufacturing and service sectors
necessitated revision of the scheme guidelines. Various consultations with MSME-DIs, State
Implementing Agencies and State Governments have suggested bringing simplification in the
scheme guidelines so as to reduce layers of various processes and reduce the time required for
approval of the projects and which can help in better execution. It has also necessitated a greater
involvement of State governments in project identification, execution and monitoring its impact to
the local industry especially micro enterprises.
2. Revised Guidelines of the Scheme:
These revised guidelines of Scheme “Promotion of MSMEs in North Eastern Region and Sikkim”
are issued in supersession of the previous guidelines and encompasses, inter-alia, the procedures
and funding patterns. The guideline would be effective in prospective manner from the date of
issuance. The past liabilities will be addressed as per the previous guidelines of the scheme.
Ministry of MSME may amend guidelines on need basis.
3. Scheme Components:
The Scheme ‘Promotion of MSMEs in North Eastern Region and Sikkim’ approved by Govt. of
India has the following components: -
3.01 Setting up of new and modernization of existing Mini Technology Centres:
Objective: The Scheme envisages financial assistance to State Governments for setting up new and
modernization of existing Tool Room/ Mini Technology Centres. Projects for creation of
common facilities to supplement manufacturing, testing, packaging, R&D, product and process
innovations and training for natural resources such as fruits, spices, agri, forestry, sericulture and
Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 1

bamboo etc. available in NER and Sikkim would be given priority. The Geo tagging of the project
is mandatory.
Financial Assistance: The maximum assistance from Government of India will be limited to Rs.
13.50 crore or 90% of the project cost, whichever is less, balance and any excess amount to be
contributed by State Government. The GoI assistance towards the building cost for up-gradation of
infrastructure would be limited to Rs.1.00 crore within the total permissible GoI assistance.
Government of India financial assistance would not be admissible towards the cost of land.
3.02 Development of new and existing Industrial Estates:
Objective: Government of India financial assistance will be provided for development of new and
existing Industrial Estates, Flatted Factory Complexes. The infrastructure facilities will include
power distribution system, water, telecommunication, drainage & pollution control facilities, roads,
storage and marketing outlets etc. Geo tagging of the project is mandatory.
Financial Assistance: The maximum assistance from Government of India will be limited to Rs.
13.5 crore for development of New Industrial Estate or Rs. 9.00 crore for development of Existing
Industrial Estate or 90% of the project cost, whichever, is less balance and any excess amount to be
contributed by State Government.
3.03 Development of Tourism Sector:
Objective: Looking into immense scope of tourism sector in NER and Sikkim, projects for creation
of common services such as kitchen, bakery, laundry & dry cleaning, refrigeration and cold storage,
IT infra, potable water, display centre for local products, centre for cultural activities etc. in a
cluster of home stays may be considered. There has to be linkages of projects with local MSEs.
Projects of State Tourism Development Agencies or Central/State Autonomous bodies for Tourism
Development shall be allowed.
The following will be the mandatory requirements-

a. Geo tagging of the project ;
b. The validation of DPR by Ministry of Tourism;
c. Nos. of minimum beneficiaries- 10 MSEs (in tourism services);
d. Beneficiaries should essentially be linked to any renowned e-commerce platform.

Financial Assistance: The assistance from Government of India will be limited to Rs. 4.50 crore or
90% of the project cost whichever, is less balance and any excess amount to be contributed by State
Government.
4. Procedure for Processing Proposals and Release of Funds:

4.01 Mini Technology Centre
As regards Tool Room/ Mini Technology Centre, the methodology of sanction will be as follows:
4.01.1 The State Government, desirous of availing financial assistance under the scheme would formulate
a proposal and identify an agency preferably Department of Industries & Commerce or any State
Govt. organization engaged in promotion of MSMEs to implement the project. In case, any
assistance is needed at this stage, they may approach office of Development Commissioner
(MSME), New Delhi or its field offices viz. MSME-DIs.
4.01.2 The State Government will prepare a Detailed Project Report (DPR) covering aspects like the
status and potential of the enterprises of the region, proposed location, demand analysis of sector
to be served, objective of the project, services to be offered, organizational structure, capital cost
(Building, plant & machinery including other infrastructure facilities), operating expenses, total
estimated cost of Mini Technology Centre, funding pattern, Implementing Agency, cash flow
analysis indicating techno-economic viability of the project and projection on outcome of the
project on increase in percentage of revenue of MSMEs receiving assistance under the project and
number of employment opportunities generated. MSME-DIs may help State Government in
preparation of DPR. The State Government will constitute a Committee to specify plant &
machinery required for a project.
4.01.3 While forwarding the proposal (in the prescribed format in Annexure-IA) along with DPR to
Government of India, the State Government would confirm that:
(i) The balance cost over and above the permissible grant and the recurring cost will be borne
by the State Government. The project escalation cost if any shall be borne by the State
Govt.
(ii) Proposal should be forwarded through concerned MSME-DI including the comments of
stakeholders on the DPR.
4.01.4 On receipt of proposal, Office of DC (MSME) will examine the proposal online and the
discrepancy, if any, would be communicated to State Government within 20 days of receipt of
proposal. Thereafter, Office of DC (MSME) would prepare a Note for obtaining the approval of
the ‘Project Approval and Monitoring Committee’.

4.01.5 ‘Project Approval and Monitoring Committee’ (PAMC) comprising of following would consider
and approve the proposal:
1. Secretary (MSME) Chairperson
2. Additional Secretary &Development Commissioner (MSME) Member
3. AS&FA or his/her representative Member
4. Representative of M/o DoNER Member
5. Representative of M/o Food Processing Industries Member
6. Representative of M/o Rural Development Member
7. Representative of M/o Tourism Member
8. Representative of M/o Textiles Member
9. Representative of DPIIT Member
10. Representative of concerned State Member
11. Additional Development Commissioner (scheme) Member
12. Director (SFURTI), Director (Cluster Development) and Member
Director (Tool Room/TCSP/TCEC) MoMSME
13. Director/HoO concerned MSME-DI Member
14. JDC/Director (scheme) Member-Secretary
4.01.6 PAMC, while considering and approving the proposal may:

Co-opt any eminent person / expert in the Committee with the approval of Chairman
(PAMC)
4.01.7 After PAMC approves the proposal, formal approval of the Project will be conveyed to the State
Governments.
a.) Central assistance will be released to the State Project Implementing Agency. Funds will be
released to implementing agency in three installments in the ratio of 50:40:10 after final
approval, depending upon the implementation plan, progress made, requirements of funds
etc. Funds will be released only after upfront contribution by the State Govt. in
proportionate contribution and recommendation of a committee under the chairmanship of
Director/HoO MSME-DI of concerned State comprising of representatives from
Directorate of Industries or any other State Govt. organisation engaged in promotion of
MSMEs and one from Implementing Agency.
b.) The funds will be released to the Project specific Bank Account in Public Sector Banks &
Regional Rural Banks of Implementing Agency.
c.) Implementing Agencies have to submit Utilization Certificates (UCs) timely in form GFR-
12C (as per annexure-II) for GoI grants before the release of next installment and final UC
within 6 months of completion of projects.

d.) The procurement of Plant and Machinery will be done through e-tendering (either through
GeM or Central Public Procurement Portal) as per GFR and CVC guidelines by a
committee constituted by the State Govt. Director/HoO MSME-DI and representative from
implementing agency will be member of the committee. Other members may be decided by
the State Govt.
4.01.8 Time Period for completion of the project:
The projects have to be completed within 36 months from the date of approval order.
4.01.9 State Government shall keep a provision for including a nominee of Central Government on the
Governing Body of the Mini Technology Centre.
4.02 Development of Industrial Estate

As regards development of Industrial Estate and Flatted Factory Complex, the methodology of
sanction will be as follows:
a proposal and identify an agency, preferably Department of Industries & Commerce or an
organization engaged in promotion of enterprises to implement the project. In case, any assistance
is needed at this stage, they may approach Office of Development Commissioner (MSME), New
Delhi.
4.02.2 The proposal may include financial assistance towards creation of Infrastructure facilities like
roads; water supply; water harvesting; drainage; power, ETPs and Administrative Services like
office building, telecommunication/cyber centre/documentation centre, Conference
Hall/Exhibition centre, Raw material storage facility, Marketing outlets/First Aid Centre, Creche,
Canteen facilities etc. The DPR should also include projections on outcome of the project on
increase in percentage of Revenue of MSMEs receiving assistance under the project and number of
employment opportunities generated.
4.02.3 While forwarding the proposal (in the prescribed format in Annexure-IB) along with DPR to
(i) Suitable land of requisite size is available.
(ii) The balance cost over and above the permissible grant and the recurring cost will be borne
Govt.

(iii) Proposal should be forwarded through concerned MSME-DI including the comments of
discrepancy, if any, the same would be communicated to State Government within 20 days of
receipt of proposal. Thereafter, Office of DC (MSME) would prepare a Note for obtaining the
approval of the ‘Project Approval and Monitoring Committee’ (PAMC) as detailed in Para
4.01.5&6 above.
4.02.5 After PAMC approves the proposal, formal approval of the project will be conveyed to the State
Governments. The financial assistance shall be released as per following procedure;
Directorate of Industries or any other State Govt. organization engaged in promotion of
Regional Rural Banks of IA.
12 C (as per annexure-II) for GoI grants before the release of next installment and final UC
implementing agency will be member of the committee. Other members may be decided by
the State Govt.

4.03 Development of Tourism Sector:
As regards Development of Tourism Sector, the methodology of sanction will be as follows:
a proposal and identify an agency preferably State Tourism Development Agencies or
Central/State Autonomous bodies for Tourism Development/Tourism Development Corporation or
any State Govt. organization engaged in promotion of Tourism Sector. In case, any assistance is
needed at this stage, they may approach office of Development Commissioner (MSME), New
Delhi.
4.03.2 The State Government will prepare a Detailed Project Report (DPR) covering aspects like the
status and potential of the tourism of the region, proposed location, demand analysis of sector to be
served, objective of the project, services to be offered, organizational structure, capital cost
(Building, plant & machinery including other infrastructure facilities), operating expenses, total
estimated cost of project, funding pattern, Implementing Agency, cash flow analysis indicating
techno-economic viability of the project. The DPR should also include projections on outcome of
the project on increase in percentage of Revenue of MSMEs receiving assistance under the project
and number of employment opportunities generated. The MSME-DIs may help State Government
in preparation of DPR. The State Government will constitute a Committee to specify plant &
machinery required for a project.
4.03.3 While forwarding the proposal (in the prescribed format in Annexure-IC) along with DPR to
(i) The balance cost over and above the permissible grant and the recurring cost will be borne
Govt.
(ii) Proposal should be forwarded through concerned MSME-DI including the comments of
discrepancy, if any, the same would be communicated to State Government within 20 days of
receipt of proposal. The DPR shall be forwarded to M/o Tourism for their vetting. After vetting of
DPR by M/o Tourism, Office of DC (MSME) would prepare a Note for obtaining the approval of
the ‘Project Approval and Monitoring Committee’ as detailed in Para 4.01.5&6 above.

4.03.5 After PAMC approves the proposal, formal approval of the Project will be conveyed to the State
Governments.
Directorate of Industries or any other State Govt. organisation engaged in promotion of
Regional Rural Banks of IA.
12 C (as per annexure-II) for GoI grants before the release of next installment and final UC
implementing agency will be member of the committee. Other members may decided by
the State Govt.
4.03.7 State Government shall keep a provision for including a nominee of Central Government on the
Governing Body of the project.
5. Other administrative expenses

Up to 5% of total approved budget may be utilized to meet expenditure under the Budget Head
for impact studies etc. and other administrative expenses for operating of the scheme.

6. Time extension for project
State governments shall ensure time bound completion of the project. However, in special
circumstances time extension may be given by the Ministry on recommendation of the Chief
Secretary of the respective State as per the following:
I. Six months from the stipulated date of completion of the project-AS &DC(MSME)
II. Six to twelve months from the stipulated date of completion of the project-
Secretary(MSME)
III. More than one year from the stipulated date of completion of the project- Minister of
MSME/Minister In-charge for MSME.
*********

ANNEXURE-IA
FORMAT TO APPLY FOR CENTRAL ASSISTANCE FOR MINI TECHNOLOGY CENTRE IN

NER / SIKKIM
To
The AS&DC (MSME),

Ministry of MSME,
O/o DC (MSME),
7th Floor, Nirman Bhavan
Maulana Azad Road
NEW DELHI 110 108
Subject: Financial Assistance to States/State Agencies in North Eastern Region and Sikkim, for
setting up / up-gradation of Mini Technology Centres/Mini Tool Rooms
Sir,
Based on the Detailed Project Report prepared by M/s ______________, State Government of
_______________have approved a proposal to set up / upgrade a Mini Technology Centre at
___________ with central assistance under the above mentioned scheme at the estimated cost of
Rs._______crore as per details given below:
S.No. Items Rs. (in crore)

1 Land -
2 Buildings (----sq.m) -
3 Machinery/Equipment -
4 Other Capital Expenses -
5 Pre-operative expenses -
6 Contingencies -
Total:
2. The project will be implemented by_____________ and the funding pattern will be:-
(Rs. in crore)
(a) Grant from Govt. of India -
(b) Share of State Government -
(including cost of land)

(c) Others (to be specified) -
3. Necessary provision of Rs._______ crore has been made in the State Government’s Budget for the
year _________ for the purpose, and any escalation would be met out of State Government’s
budget.
4. You are requested to sanction the Central assistance under the scheme. A copy of the Detailed
Project Report is enclosed for perusal.
Yours faithfully
Secretary/ Director of Industries /

Competent authority

ANNEXURE-IB
FORMAT TO APPLY FOR CENTRAL ASSISTANCE FOR DEVELOPMENT OF INDUSTRIAL

ESTATE IN NER / SIKKIM
To
The AS&DC (MSME),

Ministry of MSME,
O/o DC (MSME),
7th Floor, Nirman Bhavan,
Maulana Azad Road,
NEW DELHI 110 108
Development of Industrial Estate/ Flatted Factory Complexes
Sir,
Based on the Detailed Project Report prepared by M/s ____________, State Government of
____________have approved a proposal for development of Industrial Estate at ________________ with
central assistance under the above mentioned scheme at the estimated cost of Rs._______crore as per
details given below:
S.No. Indicative Items Rs. (in crore)

1. Land Development and Other Overhead Infrastructure
(i) Cost of land filling / leveling including boundary
wall / fencing /Cost of construction for Flatted
Factory Complex
(ii) Cost of laying roads
(iii) Road side greenery & social forestry
(iv) Water supply including overhead tanks, and pump
houses
(v) Water harvesting
(vi) Drainage
(vii) Power (Sub-Station and distribution network
including street light etc), Generation of non-
conventional energy
(viii) Others (Sanitary Conveniences etc.)
Sub Total (1):
2. Administrative and Other Services Complex
(i) Administrative Office Building
(ii) Telecommunication / Cyber Centre/ Documentation

Centre
(iii) Conference Hall / Exhibition Centre
(iv) Raw material storage facility, Marketing outlets

(v) First aid Centre, Creche, Canteen facilities
Sub Total (2)
(vi) Effluent Treatment Facilities
(vii) Contingencies & Pre-operative expenses
Grand Total (1 + 2)
2. The Project will be implemented by___________ and the funding pattern will be:-
(Rs. in crore)

budget.
Yours faithfully

Competent authority

ANNEXURE-I C
FORMAT TO APPLY FOR CENTRAL ASSISTANCE FOR DEVELOPMENT OF TOURISM

SECTOR IN NER / SIKKIM
To
The AS&DC (MSME),
Ministry of MSME,
O/o DC (MSME),
7th Floor, Nirman Bhavan
Maulana Azad Road
NEW DELHI 110 108
setting up of Centre for tourism development.
Sir,
Based on the Detailed Project Report prepared by M/s ______________, State Government of
_______________have approved a proposal to set up a Centre for tourism development at ___________
with central assistance under the above mentioned scheme at the estimated cost of Rs._______crore as per
details given below:
S.No. Items Rs. (in crore)

1 Land -
2 Buildings (----sq.m) -
3 Machinery/Equipment -
4 Other Capital Expenses -
5 Pre-operative expenses -
6 Contingencies -
Total:
2. The project will be implemented by_____________ and the funding pattern will be:-
(Rs. in crore)


budget.
Yours faithfully

Competent authority

ANNEXURE-II
FORMS
GFR 12 – C
[(See Rule 239)]
Form of Utilization Certificate
Sl.No. Letter No. and Amount

date Certified that out of Rs.__________________ of grants
sanctioned during the year __________ in favour of
_______________under this Ministry / Department
Letter No. given in the margin and Rs. ___________ on
account of unspent balance of the previous year, a sum
of Rs._________________ has been utilized for the
purpose of ___________ for which it was sanctioned
and that the balance of Rs._________________
Total remaining unutilized at the end of the year has been
surrendered to Government (vide No. ______________
dated__________)/ will be adjusted towards the grants
payable during the next year______________.
2. Certified that I have satisfied myself that the conditions on which the grants-in-aid was sanctioned
have been duly fulfilled / are being fulfilled and that I have exercised the following checks to see that the
money was actually utilized for the purpose for which it was sanctioned.
Kinds of checks exercised

1.
2.
Signature…………………..
Designation………………..
Date………………………..
Note: The above utilization certificate should be counter signed by the Administrative Secretary of the
Division regulating the Scheme/Finance Secretary.
PS: The UC shall disclose separately the actual expenditure incurred and loans and advances given to
suppliers of stores and assets, to construction agencies and like in accordance with scheme guidelines
and in furtherance to the scheme objectives, which do not constitute expenditure at the stage. These
shall be treated as utilized grants but allowed to be carried forward.

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Guidelines for Central Sector Scheme “Promotion of MSMEs in N.E.

Region and Sikkim”

Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 1

The following will be the mandatory requirements-

Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 2

4. Procedure for Processing Proposals and Release of Funds:

Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 3

4.01.6 PAMC, while considering and approving the proposal may:

Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 4

4.02 Development of Industrial Estate

Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 5

4.02.6 Time Period for completion of the project:

Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 6

Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 7

5. Other administrative expenses

Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 8

Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 9

FORMAT TO APPLY FOR CENTRAL ASSISTANCE FOR MINI TECHNOLOGY CENTRE IN

The AS&DC (MSME),

S.No. Items Rs. (in crore)

Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 10

Secretary/ Director of Industries /

Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 11

FORMAT TO APPLY FOR CENTRAL ASSISTANCE FOR DEVELOPMENT OF INDUSTRIAL

The AS&DC (MSME),

S.No. Indicative Items Rs. (in crore)

Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 12

(iv) Raw material storage facility, Marketing outlets

(b) Share of State Government -

(c) Others (to be specified) -

Secretary/ Director of Industries /

Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 13

FORMAT TO APPLY FOR CENTRAL ASSISTANCE FOR DEVELOPMENT OF TOURISM

S.No. Items Rs. (in crore)

4 Other Capital Expenses -

(b) Share of State Government -

(c) Others (to be specified) -

Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 14

Secretary/ Director of Industries /

Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 15

Sl.No. Letter No. and Amount

Kinds of checks exercised

Guidelines: Promotion of MSMEs in NE Region and Sikkim Page 16

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