The ministry of micro, small and medium enterprises (MSMEs) has invited ideas from startups, innovators, technocrats, MSMEs and others for funding support up to INR 15 Lakh per approved idea through the business incubators chosen by them.
Under the scheme for Support for Entrepreneurial and Managerial Development of MSMEs through Incubators, the incubators or host institutions (HI) approved for the scheme will be supported by the MSME office of development commissioner.
The ideas received as fully completed applications till 20th February 2020 will be considered for incubation support under the scheme. Called the Ideas for New India Challenge 2020, the main objective of the scheme is to promote and support the adoption of the latest technologies in manufacturing as well as knowledge-based innovative MSMEs (ventures) that seek the validation of their ideas at the proof of concept level.
The scheme also supports engagement with enablers who will advise such MSMEs in expanding the business by supporting them in design, strategy and execution. The enablers will play a pivotal role and would be an integral part of business development.
“Entrepreneurs are the base of social change that India aspires for and their efforts will lay the foundation for a New India, fill in the gaps in solutions required by the people and help build the base for constructing the economic structure of a powerful India,” reads the MSME ministry announcement.
The funding is expected to enable MSMEs to create innovative solutions while looking out for local solutions to the local problems. Some of the focus areas for the ideas include:
- Water recycling technologies
- Recycling of wastewater from household
- Development of low water-intensive seeds
- To control leakage in supply chain
- Alternatives to plastic
- Management of e-waste management
- Usage of crop residue
- Encouragement of bio-fuel usage
Union Budget 2020 also saw an announcement of certain reforms to reduce the compliance burden on small retailers, traders and the MSME sector. The government has proposed to raise the auditing threshold for MSMEs from INR 1 Cr in turnover to INR 5 Cr. However, the reduced compliance burden would be applicable to only those MSMEs that transact less than 5% in cash.
Additionally, while announcing infrastructure projects, the finance minister said that a National Logistics Policy, which will create a single-window e-logistics market and focus on the generation of employment, skills and making MSMEs competitive, will be released soon.