MSME Innovative Scheme
On 10th March 2022, Narayan Rane, Minister of Micro, Small, and Medium Enterprises (MSMEs) launched the MSME Innovative Scheme.
About the scheme
- MSME Innovative Scheme aims to guide the MSMEs in developing business ideas into viable business propositions. Thus the scheme acts as a hub for innovation activities.
- The scheme will provide support through guidance, financial and marketing assistance, technical support, etc. to ensure the scaling up of MSMEs.
- This new scheme was launched with the combination of existing sub-schemes around incubation, design, and IPR for MSMEs. These schemes will continue to operate as individual programs.
- The incubation component of the “MSME Innovative Scheme” will help MSMEs in adopting the latest technologies. But this support is only for those MSMEs that seek validation of their ideas at the proof-of-concept stage.
- Certain institutes will be recognized by the government to act as business incubators. Such institutes are called host institutes and they will be provided financial support of up to Rs 15 lakh per idea.
- MSME Idea Hackathon was also announced by the government to invite ideas from MSMEs, innovators, and students through host institutes.
The design component of the “MSME Innovative Scheme” will guide towards solving problems related to the design of the product, both new and existing. IISc Bangalore, IITs, NITs, National Institute of Design, etc. would act as partner institutions. Financial assistance is also provided under this component of the scheme.
Intellectual property rights (IPR)
IPR component of the “MSME Innovative Scheme” will deal with measures related to the protection and commercialization of ideas of MSMEs. In this regard, consultation support will be provided. The cost incurred by MSMEs on registration of patent, trademark, geographical indications (GI), and design will be reimbursed.
Equity support of up to Rs 1 crore was announced by the government for the commercialization of ideas, designs, and patents. This will help MSMEs to scale and raise more funds.
Category: Economy & Banking Current Affairs - 2024