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MATU Scheme Revised Guidelines

Introduction

Micro Small and Medium Enterprises (MSMEs) play a vital role in strengthening the Indian economy. Not only this, but MSMEs have also been contributing to spreading entrepreneurial culture through business innovation. Being widely dispersed across sectors of economy producing diverse range of products and services to meet local as well as global market, MSMEs have contributed a lot to the nation.

Amazingly, the contribution of MSME is 8 per cent of GDP, 45 percent of manufacturing output and 40 percent of exports of the country and uniquely they are least investment driven with high returns. This data concludes MSME sector has the potential of tapping individuals to interact with the economic activities that eventually results in employment generation.

MATU Scheme Applicability

The MATU Scheme benefits shall be applicable to all the applicants named as Micro Small Enterprise those are registered through EM part II /Udyog Aadhaar Memorandum (UAM).

Objective of Marketing Assistance & Technology Up-gradation Scheme

The MATU would cover the following activities :-

  • MATU Scheme allows encouraging manufacturing Micro and Small Enterprises (MSEs) in their efforts of tapping and developing domestic/overseas markets.
  • In addition to it, also encourages Micro and Small Enterprises (MSEs) for adoption of bar coding on products for increase in marketability of products in National/ International market.
  • MATU facilitates marketing linkages especially in the view of Public Procurement Policy for MSEs Order 2012.
  • MATU Scheme create consciousness and to educate the MSMEs about importance of packaging in marketing, latest packaging technology, import – export policy and procedure, latest development in international trade etc. by organizing international & National Workshop/Seminar on marketing/ packaging topics relevant to MSME sector.

Components of MATU Scheme

The following mentioned components are the ones that are covered under the Marketing Assistance & Technology Up-gradation Scheme, namely:-

  1. Domestic Fairs / Exhibitions
  2. International Trade Fairs / Exhibitions
  3. International/National Workshop on Marketing/Public Procurement! Packaging etc.
  4. Vendor Development Programmes
  5. Reimbursement on obtaining Bar code.

Domestic Fairs /Exhibition

The objective of introducing Domestic Fairs/ Exhibitions is to encourage manufacturing Micro and Small Enterprises (MSEs) in their efforts of tapping and developing domestic markets that is being implemented by MSME Development Institutes.

Selection of Domestic Trade Fair/Exhibition: The committee comprising of the following at MSME-DI level will select Domestic Trade Fair/Exhibition,

1.Director MSME-DIChairman
2.General Manager, local District Industries Centre or his representativeMember
3.Representative Industry Association*Member

 

*Industry Association may be different for different Fairs/Exhibitions depending upon the theme/product vertical of the Fair/Exhibition.

The list of Domestic Fairs/Exhibitions selected by the above committee, will be sent by MSME-Dls to Office of DC (MSME) for final approval.

Selection of MSEs for Domestic Fairs/Exhibitions

The selection of units would be done by the concerned MSME-Dls as per theme of the fair and usefulness to MSE sector on the recommendation of Fair/Exhibition Selection Committee.

An MSME-DI can recommend maximum of 10 (ten) Micro/Small entrepreneurs to participate in an approved fair/exhibition.

The offer for participation will be available on a first-come served basis.

As there could be the participation of MSEs through more than one MSME-DI in a Trade Fair/Exhibition, the final approval of participation of MSEs will be given by % DC-MSME and maximum no. of participation of MSEs will be decided depending upon the size and usefulness of event to MSE sector.

Financial Assistance to MSEs:

The eligible items and scale of assistance for the participation would be as under:

S.NO.Eligible ItemScale of assistance
1.Space Rent Charges80% of space rent paid for General category units and 100% for SC/ST/women/NER/PH units limited to Rs.20,000/- or actual whichever is less. The space rent will subject to maximum booth/stall size of 6 Sq. Mtrs. or minimum booth/stall size 2 provided by the fair organiser.

(In case of technology trade fair/exhibition, maximum limit of space rent charges will be Rs.50,000/- in place of Rs.20,000/-)

2.Contigency expenditure (include travel, publicity and freight)100% of Contingency expenditure for all categories of units subject to .maximum Rs.10,000/- or actual, whichever is less (travel expenditure for one representative from each participating unit).

The entrepreneur would be allowed reimbursement under the scheme for maximum of 2 (two) events in a year.

The quantum of financial assistance will be restricted to maximum Rs.10.00 lakh per event.

Recommended MSEs after participation in trade fair/exhibition should submit their reimbursement claim on line ( or system in place) only in prescribed format within two month from the completion date of fair/exhibition, failing which it may be presumed that unit is not interested in the reimbursement.

Provision for MSME-Development Institutes

If found relevant MSME-Dls may take stall, in an exhibition/trade fair for propagating the schemes of the Ministry and its activities. Up to Rs.25,OOO/-may be claimed by Director, MSME-OI towards stall charges and TA/DA of the officer as per admissible rules. MSME-Dls have to take prior approval of 0/0 DC-MSME for the participation in the Trade Fair/Exhibition.

International Trade Fairs / Exhibitions

MSME Development Institutes are conducted in order to encourage manufacturing Micro and Small Enterprises (MSEs) in their efforts of tapping and developing overseas markets that is implemented by MSME Development Institutes.

Selection of International Trade Fair/Exhibition

International Trade Fairs/Exhibitions will be finalised by Office of DC (MSME) as per prevailing practices and made available on web portal as master list.

In case, chosen fair is not available in master list on web portal, a request for inclusion of Fair/Exhibition may be submitted by MSME-Dls with recommendation from Fair/Exhibition Selection Committee to Office of DC (MSME) with proper justification to include the fair of entrepreneurs’ choice, well in advance for consideration of competent authority. Such request should be for the participation at least 10 (ten) MSEs in the event.

Selection of MSEs for International Fairs/Exhibitions

An MSE may apply online/ in prescribed application format ( or system in place) well in advance, at least two months for participation in the events of master list.

The offer for participation will be available on first come first served basis.

For the participation in international trade fairs/exhibitions, quality of products has considerable importance. As such, it is preferable that participating units should have ISO 9000/14000 certification.

Each MSME-OI will constitute a committee of three members comprising Director, MSME- 01 as the chairman and members would be representative from fair product specific association and GM or nominee form local DIC which will scrutinize and recommend the participation of MSEs in fairs/exhibitions.

Finally the participation of MSEs will be approved by Office of DC (MSME) and approved MSEs will be eligible for participation to avail the benefits under the scheme.

Financial Assistance to MSEs

The eligible items for such participation and scale of assistance would be as under:

SI.NO.Eligible ItemsScale of assistance
1.Space rent80% of the space rent for General Category units 1. whereas 100% for SC/STlVVomen/NER units subject to maximum RS.1.00 lakh or actual rent paid, whichever is less. The space rent will subject to maximum booth/stall size of 6 Sq. Mtrs. or minimum booth/stall size provided by concerned Indian trade bodies(e.g. ITPO, FIEO etc.) or the Fair Organiser.
2.Air fare100% of the economy class air fare for all categories of units subject to maximum RS.1.25 lakh or actual air fare paid, whichever is less (for one representative from each participating enterprise) .

 

Micro & Small entrepreneurs are permitted for availing the benefit under the scheme for participation in International Trade fairs/exhibitions and reimbursement of their claims only once in a financial year, irrespective of number of units they own. Also, a person cannot represent more than one MSE in a financial year.

The quantum of financial assistance will be restricted to maximum Rs 25 lakh per event. In case, budgetary support for an event exceeds Rs. 25 lakh, the approval of competent authority would be required.

Assistance shall be available for travel by one permanent employee/director/partner/proprietor of the participating unit.

Recommended MSEs after participation in trade fair should submit their reimbursement claim, on line (or system in place) within two months in prescribed format from the completion of date of fair failing which it may be presumed that unit is not interested in the reimbursement.

Concerned Indian trade bodies will arrange for the invitation letter from the fair organizer to facilitate obtaining of visa by the representatives of the participating MSEs in the related fair. However, issuance of visa to the unit is the sole discretion of the concerned embassy in India.

The charges of booking space will be paid by entrepreneur to the Indian trade bodies directly and claim the admissible amount at the time of final bill settlement through on line.

The unit will upload relevant documents on line when applying for claim of subsidy.

Provision for participation of Officials

For participation of more than 10 MSEs, one officer either from % DC(MSME) or MSMEDis or State Government/ State owned corporations/bodies may be nominated by AS & DC (MSME) in the fair/exhibition to manage the sponsored MSE participants.

For participation of officials from State Government/ State owned corporations/bodies there should be a minimum participation of 6 MSEs from that State (3 in case of NER).

The expenditure would be admissible as per entitlement and extant rules. The officer may draw duty allowance advance directly either from Office of DC (MSME) or from the concerned Embassy as applicable.

International/National Workshops/ Seminars on Marketing/Public Procurement/Packaging

International/National Workshops/Seminars on Marketing/Packaging will be organised for promotion of new marketing techniques, emerging global marketing/product innovation trends in various product and services verticals, development in packaging, reviewing public procurements with Central Ministries/Departments/Central Public Sector Undertakings(CPSUs) under Public Procurement Policy for MSEs Order 2012 and topics relevant to MSME sector.

Financial Assistance

The quantum of assistance would be as under:

S.No.ItemScale of assistance
1.National workshop/ seminarRs. 2.5 Lakh per workshop/seminar anywhere in the country (or actual whichever is lower).
2.International workshop/seminarRs. 2.5 Lakh per workshop/seminar anywhere in the country with an additional cost of Rs. 2.5 Lakh (maximum) towards cost of air travel, boarding & lodging etc. for international experts (or actual whichever is lower) subject to condition that international workshop/seminar should not be held in any five star hotel.

Vendor Development Programmes

Vendor Development Programmes shall be organized by MSME Development Institutes in order to provide a common platform for both buyers and sellers including displaying the products and service of MSMEs and requirements of Large Scale buyer organisations.

  1. State Level Vendor Development Programme : These programmes will primarily focus Vendor-Vendee match making between MSMEs and CPSUs located in the State & other procuring agencies. The discussion on Public Procurement Policy for MSEs Order-2012 will also part of these programmes. The duration of these programmes will be one day. The funds for organizing these programme will be Rs. 30,000/- per programme.
  2. National Level Vendor Development Programme : The National Level Programme shall be focusing on organizing Industrial Exhibition as well as Buyer-Seller Meet. The objective for the programme is to provide opportunity for MSME to be able to showcase their products. And it shall be conducted just for 2-3 days.
“A” Class CitiesAll Other CitiesNE State/ J&K/Himachal Pradesh
Max Sanction per programmeMinimum Recovery
Rs. 8.00 Lakh60%
Max Sanction per programmeMinimum Recovery
Rs. 6.00 Lakh50%
Max Sanction per programmeMinimum Recovery
Rs. 5.00 Lakh20%

 

MSMEs would be allowed to participate in these programmes convergence with PSUs/State Governments etc.

Reimbursement on obtaining Bar code

With the objective to provide financial support to Micro & Small enterprises (MSEs) enhancing their marketing competitiveness, bar code registration of GS-1 is obtained. And the agency behind implementing the rules of obtaining bar code registration is the MSME Development Institutes.

Apply for Registration for the use of Bar Code

The authority which shall be granting registration for use of Bar Code is the GS1 India, formerly EAN India, being an autonomous body under the Ministry of Commerce & Industry, Government of India.

Contact EAdvisors regarding any query.

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