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Consulting Services for SME Related Government Schemes - Apohan Corporate Consultants Pvt. Ltd.

Consulting Services for SME Related Government Schemes

Apohan Corporate Consultants Pvt. Ltd. > Financial Strategy > Consulting Services for SME Related Government Schemes

Government schemes

The government provides a lot of assistance to small and medium enterprises. This assistance can be in the following ways:

List of government schemes

Easy finance availability from Banks, without collateral requirement
Protection against delay in payment from Buyers and right of interest on delayed payment Preference in procuring Government tenders
Stamp duty and Octroi benefits
Concession in electricity bills
Reservation policies to manufacturing / production sector enterprises
Time-bound resolution of disputes with Buyers through conciliation and arbitration
Reimbursement of ISO Certification Expenses
Credit prescription (Priority sector lending), differential rates of interest etc.
Excise Exemption Scheme
Exemption under Direct Tax Laws.
Financial Assistance for setting up testing facilities through NSIC
Statutory support such as reservation and the Interest on Delayed Payments Act.
Subsidy on ISO Certifications
Subsidy on NSIC Performance and Credit ratings
Participation in Government Purchase registrations
Registration with NSIC
Counter Guarantee from Government of India through CGSTI
Waiver in Earnest Money (Security Deposit ) in Government tenders
Stamp duty and Octroi benefits,
Weightage in price Preference.
Reduction in rate of Interest from banks (Subject to ratings)
Free of Cost Government tenders


Arranging Finance

Need of Finance are of following type:-
• Long and medium term loans
• Short term or working capital requirements
• Risk Capital
• Seed Capital/Marginal Money
• Bridge loans

Financial assistance in India for MSME units is available from a variety of  institutions. The important ones are:-
• Commercial/Regional Rural/Co-operative Banks.
• SIDBI: Small Industries Development Bank of India (refinance and direct lending)
• SFCs/SIDCs: State Financial Corporations (e.g. Delhi Financial Corporation)/ State Industrial Development Corporations.

Process of loan

• Documentation for Loan Application
• Balance Sheet and Profit Loss Statement for last three consecutive years of firms owned by promoters
• Income Tax Assessment Certificates of Partners/Directors
• Proof of Possession of Land/Building
• Architect’s estimate for construction cost
• Partnership deed/Memorandum and Articles of Associations of Company
• Project Report
• Budgetary Quotations of Plant and Machinery

Clearances needed

An entrepreneur has to obtain several clearances or permissions depending upon the nature of his unit and products manufactured.

Environment Clearance
Regulatory or Taxation Clearances
Product Specific Clearances

Apohan’s definition of small and medium enterprises:

For the purpose of providing its strategic services, Apohan uses the word small and medium enterprises in general sense. Our definitions  is very different from the different definition used by the Ministry of MSME. Following are the attributes expected by Apohan:

1. A company in manufacturing sector
2. A company with minimum 25 crore rupees of revenue

Apohan’s services for small and medium industries:

1. End to end services for equity funding
2. Business strategy for New projects
3. Mergers and acquisitions
4. Corporate Management Services
5. Financial strategy services
6. Assistance in availing the government schemes

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