SCHEME FOR MARKET DEVELOPMENT ASSISTANCE FOR MSME EXPORTERS (MSME - MDA)

Existing Scheme

Proposed Scheme

Individual Assistance

Sector-specific Market Studies

Anti-Dumping Cases

Implementation of the Scheme

MSME-MDA Committee

Annexures

Check list of documents to be enclosed with Application form and claim form

FORM-I Application form for participation in fair/study tours/trade delegation

FORM-II Claim form for participation in fair/study tour

FORM-III Pre-receipt

FORM-IV Application form for assistance for publicity

FORM-V Claim form for publicity

EXISTING SCHEME

A Market Development Assistance Scheme is currently operated by the Ministry of Commerce with a view to encourage exporters (including MSME exporters) to access and develop overseas markets. The scheme offers funding for participation in international fairs, study tours abroad, trade delegations, publicity, etc. Direct assistance under MDA for small- scale units is given for individual sales-cum-study tours, participation in fairs/exhibitions and publicity. SIDBI operates a scheme of direct assistance for financing activities relating to marketing of MSME products.

The Office of DC(MSME) has an existing scheme for participation in international fairs, whereby MSME entrepreneurs are encouraged to display their products at international exhibitions abroad. MSME-DO provides exhibition space and shipment of exhibits ex-Mumbai free of cost for this purpose.

PROPOSED SCHEME

As part of the comprehensive policy package for promotion and development of MSMEs announced on 30th August 2000, it was decided that the Small Industries Development Organisation should have a Market Development Assistance (MDA) scheme similar to the one obtaining in the Ministry of Commerce. It should be a Plan Scheme.

In pursuance of the above announcement and in recognition of the fact that (i) MSME exporters need to be encouraged in their efforts at tapping and developing overseas markets; and (ii) MSME-DO's participation in international fairs, if coupled with the presence of actual exporters, would lead to substantial increase in export business, it has been decided to operate a new scheme called MSME Exporters Market Development Assistance (MSME-MDA) Scheme .

The scheme to be operated in addition to the existing MSME-DO scheme for participation in international fairs will cover all activities for which direct assistance is given under the existing MDA scheme of the Ministry of Commerce. In addition, the scheme would also provide for financial assistance for commissioning market study reports and for initiating/contesting anti-dumping cases. The scheme came into operation w.e.f. 30-08-2001.

Market Development Assistance Scheme for Micro/ Small manufacturing enterprises/ Small & Micro exporters (MSME-MDA)

The scheme offers funding for:
1. Participation by manufacturing Small & Micro Enterprises in International Trade Fairs/ Exhibitions under MSME India stall.
2. Sector specific market studies by Industry Associations/ Export Promotion Councils/ Federation of Indian Export Organisation.
3. Initiating/ contesting anti-dumping cases by MSME Associations and
4. Reimbursement of 75% of one time registration fee (w.e.f. Ist January 2002) and 75% of annual fees (recurring) (w.e.f. Ist June 2007) paid to GSI (Formerly EAN India) by Small & Micro units for the first three years for bar code.

  1. Objective:

      (i) To encourage Small & Micro exporters in their efforts at tapping and developing overseas markets.
      (ii) To increase participation of representatives of small/ micro manufacturing enterprises under MSME India stall at International Trade Fairs/ Exhibitions.
      (iii) To enhance export from the small/ micro manufacturing enterprises
      (iv) To popularise the adoption of Bar Coding on a large scale.

  2. Participation by manufacturing Small & Micro Enterprises in International Trade Fairs/ Exhibitions under MSME India stall
    1.1 Eligibility criteria

      i) Unit having valid permanent registration with Directorate of Industries/ District Industries Centre.
      ii) The selection of small/ micro manufacturing units would be done by MSME-DIs as per display product profile, theme of the fair and space availability.
      iii) Micro & Small manufacturing enterprise can avail this facility only once a year
      iv) Only one person of the participating unit would be eligible for subsidy on air fare.
      v) the participating units under MSME India stall at International Trade Fairs/ Exhibitions has to pay 50% of space rental charges of booked space (min. 6 sq.mtr.) by enterprises of General categories through MSME-DIs by a DD favouring PAO (MSME), New Delhi at least one month advance of the commencement of the event. In addition to this, selected units can book more space in multiple of 1x3 sq.mtr. on pro-rata basis and make payment accordingly. However, Women, SC&ST entrepreneurs & entrepreneurs from North Eastern Region need not to pay space rental charges.
      vi) The representatives of the participating units are required to carry and manage the samples (to and fro including custom clearance etc.) for display under MSME India stall at the International Trade Fairs/ Exhibitions.

    1.2 Permissible subsidy:

      (i) The Govt. of India will reimburse 75% of air fare by economy class and 50% space rental charges for Micro & Small manufacturing enterprises of General category entrepreneurs.
      (ii) For Women/SC/ST Entrepreneurs & Entrepreneurs from North Eastern Region Govt. of India will reimburse 100% of space rent and economy class air fare.
      (iii) The total subsidy on air fare & space rental charges will be restricted to Rs.1.25 lakhs per unit.

    1.3 Other conditions:

      (i) Assistance shall be available for travel by one permanent employee/ Director/ partner/ proprietor of the MSE unit in economy class.
      (ii) Space allocation will be made by O/o DC (MSME) at its discretion and the decision will be final and binding.
      (iii) The offer is available on first come first served basis till space is available.

    1.4 Procedure for availing Financial Assistance/Reimbursement of Expenses:

      1.4.1 The application must reach to the Office of DC (MSME) through concerned MSME-DIs at least one month in advance of the commencement of the event. The application must be accompanied by:
      (i) Copy of the valid MSME registration issued by concerned GM (DIC)/ Director of Industries.
      (ii) Demand Draft in favour of PAO (MSME), New Delhi for 50% rental charges of the booked space.
      (iii) Details of one or two participating representatives of the unit with photo copy of their valid passport.
      (iv) Proof of ownership of the unit as SC/ST/Women.
      1.4.2 On the completion of the event, the participating unit must submit a claim for payment enclosing the following:
      (i) Pre-receipted bill in duplicate.
      (ii) Photocopy of passport indicating therein entries regarding departure from and arrival in India and also the country visited.
      (iii) Original air ticket used during the journey. In case original air ticket is lost, a copy of the same along-with a certificate indicating details of travel from the concerned airline may be furnished.
      (iv) Participated units should furnish feedback report like business generated with value including confirmed orders obtained etc.
      (v) Claim form must be submitted within one month of return to India on completion of activity.
      (vi) No refund/ adjustment of rental charges will be made by O/o DC (MSME).

    A checklist of documents required to be submitted in each case may be seen at Annexure

    MSME-MDA COMMITTEE

    SECTOR-SPECIFIC MARKET STUDIES

    Financial assistance for the conduct of market studies would be available for industry associations/EPCs/FIEO. These should be sector specific and in respect of those sectors where MSMEs have a significant presence. This will include studies commissioned by industry associations to assess impact of WTO agreements on a specific sector. The Office of DC(MSME) may also commission such studies independently under this scheme. Assistance for commissioned studies would be limited to an overall ceiling of Rs.2 lakhs per study.

    ANTI-DUMPING CASES

    With the opening up of the economy, the use of unfair trade practices has come into sharper focus. Establishing the use of unfair trade practices such as dumping requires much groundwork. Assistance for initiating/contesting anti-dumping cases will therefore be made available to MSME associations. Such assistance would be limited to 50% of total costs involved or Rs. 1 lakh whichever is lower.

    Proposals in respect of market assistance/sector studies and for anti-dumping cases must be self-contained and should include details of activities proposed to be undertaken, breakup of costs in respect of each activity, bio-data of professionals proposed to be engaged and duration of time required for completion.

    BAR CODE

    75% reimbursement to MSME unit for adoption of Bar Code.

    IMPLEMENTATION OF THE SCHEME

    The scheme shall be implemented by the Export Promotion and Marketing Division of the Office of DC(MSME). Application forms are enclosed with these guidelines and are also available at MSME-DO's website at www.dcmsme.gov.in. At the start of each financial year, the Office of DC(MSME) shall hold a joint meeting with NSIC, SIDBI and the Ministry of Commerce to ensure that no duplication of funding or overlap occurs in the implementation of the scheme. The MSME MDA Committee shall also identify thrust commodities and thrust regions to be focussed on during the year.

    MSME-MDA COMMITTEE

    Applications received in respect of each fair/event will be placed before the MSME - MDA Committee which shall meet at least a week to ten days before the start of the fair/event. The Committee shall be headed by the Development Commissioner (MSME) and shall include as its other members a representative from FIEO, a representative from the IF Wing attached to the Ministry of MSME&ARI, Director (Board & Policy) JDC (WTO) and JDC (EP&M)in the Office of the DC(MSME) and the Director (WTO) in the Office of the DC(MSME). The Director (EP&M) in the Office of the DC(MSME) shall be the Member Secretary.


    ANNEXURE

    Check list of documents to be enclosed with application form and claim form

    FORM-I Application form for participation in fair/study tours/trade Delegation

    • Copy of MSME registration certificate.
    • Proof of FIEO/EPC membership.
    • CA's certificate for FOB exports over last 3 years.
    • A certificate/communication from concerned EPC/FIEO that the MSME unit will not be availing any assistance for this activity from the EPC/FIEO.
    • Literature on the fair/event (if available).

    FORM-II Claim form for participation in fair/study tour

    • Pre-receipt (Form-III).
    • Photocopy of passport showing departure from India and return to India, visa, country/countries visited.
    • Original air ticket.
    • Report on participation etc.

    FORM-III Pre-Receipt

    FORM-IV Application form for assistance for publicity

    • Copy of MSME registration certificate.
    • Proof of FIEO/EPC membership.
    • CA's certificate for FOB exports over last 3 years.
    • A certificate/communication from concerned EPC/FIEO that the MSME unit will not be availing any assistance for this activity from the EPC/FIEO.
    • Dummy copy of publicity material.
    • Quotations from 3 printers.

    FORM-V Claim form for publicity

    • Pre-receipt (Form-III)
    • Actual copy of publicity material.
    • Copy of payment voucher/receipt from vendor/printer.

    Application form for reimbursement of one time registration fee for adoption of bar code from GS1 India.


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Related Links:

Bar Coding
Circular on Registration for Bar Coding Under MSME-MDA Scheme
Forms on Bar Coding
List of Applications on Registration for Bar Coding