The ministry of micro, small and medium enterprises (MSMEs) has invited ideas from startups, innovators, technocrats, MSMEs, and others for funding support. The selected candidates will be provided funding support of up to Rs 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 MSME ministry announcement reads,
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
Referred to as 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 MSME website further states,
It’s the endeavor of the Ministry of Micro, Small, and Medium Enterprises to enable MSMEs to put on their thinking caps and create innovative solutions while looking out for local solutions to the local problems that could be the generation leap India needs to transform its social, cultural, and economic ecosystem into a world leader.
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.
The last date of receiving a complete application as stated on the website is February 20, 2020. The selection and the announcement of selected applications will be made between February 22 and February 29.
