Trade Related Entrepreneurship Assistance and Development

(TREAD) Scheme for Women:

Traditionally, women have been amongst the most disadvantaged sections of our society with regard to access to an control over resources.  Problems faced by them continue to be grave particularly for illiterate and semi-literate women of rural and Durban areas.  Apart from counseling and training, availability of credit poses the most serious problem for the poor women. In order to alleviate their problems, the Ministry of Micro Small & Medium Enterprise (MSME) in the Government of India has launched a scheme titled “Trade Related Entrepreneurship Assistance and Development” (TREAD) for economic empowerment of women through the development of their entrepreneurial skills in non-farm activities.  The Office of the Development Commissioner (SSI) in the Ministry of SSI is responsible for the implementation of this scheme.

2.       The three main components of this scheme are as under:

(i)       Assistance in the form of the Government of India (GOI) grant of up to 30 per cent of the total project cost, as appraised by the lending agency is provided to the Non-government Organization (NGOs) for promoting entrepreneurship among target groups for Women.  The remaining 70 percent for the project cost is financed by the lending agency as loan for undertaking activities as envisaged in the project.  The NGOs can utilize the grant for training, counseling, tie ups for marketing on behalf of the beneficiaries, etc. besides their own capacity building for assisting women.

(ii)      Selected training Institutions and NGOs conducting training programmes for empowerment of women beneficiaries identified under this scheme can also avail of GOI grant of up to Rs. 1.00 lakh per programme, for imparting training to the women entrepreneurs, provided such Institutions also bring their share of at least 25 per cent of the grant.  However, NGOs except from the North East Region (NER), would be allowed to conduct training programmes only after they take up some lending proposals under this scheme.

Need-based GOI grant upto Rs. 5 lakh per project is provided to National Entrepreneurship Development Institution (EDIs) viz. National Institute of Small Industry Extension Training (NISIET), National Institute of Entrepreneurship and Small Business Development (NIESBUD), Indian Institute of Entrepreneurship (IIE), EDIs sponsored by the State Government, Small Industries Service Institutes (SISIs), and any other Institution of repute primarily for undertaking field surveys, research studies, evaluation studies, designing of training modules, etc.

3. In order to implement this scheme, the Ministry of SSI, through the office of Development Commissioner (SSI) has signed Memorandum of Understandings (MOUs) with the Canara Bank, the Syndicate Bank, and the State Bank of India for mutual co-operation and to promote empowerment of women through setting up of micro enterprises under this scheme.  It is the endeavour of this office to further expand the coverage of this scheme across the country by involving more banks as nodal agencies for implemening the TREAD scheme.  As a part of this objective, this office has also requested some more public sector banks for becoming the nodal agencies for implementing the TREAD scheme.

4. There is a Steering Committee on TREAD under the chairmanship of Additional Secretary & Development Commissioner (SSI), which provides an overall guidance for the promotion and implementation of the Scheme.  In addition to undertaking regular monitoring and review of the implementation of the projects in consultation with the lending agencies, NGOs, training Institutions, and other stake holders, the Steering Committee also approves the GOL grant to be released through the lending agency (IES) during its periodic meetings.  Based on the progress made and experience achieved in the implementation of the scheme, the Steering Committee is also empowered to revise the eligibility criteria for the NGOs, structure/design of the scheme and the format for application to be submitted for availing benefits under the scheme.

5. During the review of the progress of the scheme by Steering Committee on TREAD in its meeting held in July, 20045 it was observed that Micro Finance Institutions (MFI) being financially viable, self-sustaining and integral to the community in which they operate, have the potential to attract more resources and expand services to clients.  Hence, the Steering Committee decided that MFI will also be allowed to raise loan on behalf of women beneficiaries under the TREAD scheme.

6. Permission to NGOs based in North East Regions (NER) for conducting training programmes under the TREAD Scheme.

In November, 2005, a meeting was organized at IIE, Guwahati to review the implementation of the TREAD scheme in the North Eastern Region (NER).  Most of the NGOs present during this meeting were of the view that women entrepreneurs based in the NER require adequate training before they could be persuaded to take up entrepreneurial activity by availing institutional loans and other assistance under the scheme. Hence, there was general demand that NGOs from the NER should be allowed to conduct training programmes under this scheme, irrespective of whether they have taken up some lending proposals for the women beneficiaries, as required under the scheme.

The Steering Committee on TREAD in its meeting held on February 14, 2006, considered this request and decided that only proposals of NGOs from the NER routed through IIE, Guwahati and National Small Industries Corporation (NSIC), Guwahati would be considered for allowing them to conduct training programmes under this scheme.

7.   Eligibility requirement of an NGO under the TREAD scheme

(a)  Be a legal entity with a minimum registration of three years.
(b)  Having experience in thrift and saving programmes with Self-Help Groups (SHGs).Be engaged in income generation activities for women entrepreneurs.Have basic infrastructure, qualified support staff and services to undertake micro-enterprise development for women (e) Prior experience in preparing project proposals on behalf of women entrepreneurs/women SHGs for income generation activities and take loan from financial Institutions for onward disbursement to them.

 8.     Grant assistance for Capacity Building of NGOs:

Training expenses of operating staff on reducing scale.Part of the expenses on
operationalising a management monitoring system, i.e. computer hardware and
software for MIS and vehicles.Charges for legal documentation, i.e. for payment of
stamp duty for loan agreements, legal expenses, valuation of assets, scrutiny and
vetting of title deeds, etc.Auditor’s fees for auditing credit programme records.
For establishment of new SHGs.
Common training/consultancy/networking inputs for the members (borrowers) relating to marketing, designing, packaging, quality control, technologies, etc.

9. Grant assistance to be used by NGOs for ultimate borrower:

(a)  Training in credit uses, credit management and basic accounting practices.(b)   Skill training and professional consultancy inputs, i.e. marketing, designing, packaging, quality control, technology transfer, financial training, etc.Equity/margin money contribution for acquisition/establishment of infrastructure (including machine and equipment) in group, entrepreneurship projects.Payment of insurance premium on productive assets acquired by beneficiaries.Expenses trips to successful micro-credit programmes. Legal documentation charges for loan documentation, if any. Legal consultancy and training expenses for building institutions of the borrowers, i.e. SHGs, Federation, or Credit Co-operation, etc. Participation in exhibition and other marketing events.

PMRY SHCEME 

PRIME MINISTERS ROJGAR YOJNA.

             The Central sector Scheme launched on 2^nd October, 1993 envisaged providing sustainable self-employment opportunities to one million persons by assisting setting up of nearly 7 lakhs tiny and micro enterprises during the then remaining period of 8^th Five Year Plan.  The Scheme continued in the 9^th Plan with plan target of 2.20 lakh beneficiaries per annum.

             Educated Unemployed youth between the age group of 18-35 years (Upper-age limit relaxed upto 45 years for women, SC/ST, Ex-servicemen and physically handicapped) who have passed 8^th standard examination and whose family income is less than Ts. 40,000/- per annum are eligible to get loans for all economically viable activities including agriculture and allied activities (excluding direct agricultural operations like raising of crops and purchase of manure etc.) Projects upto Rs. 1 lakh for Business sector and Rs. 2 lakhs for other activities are covered.  Eligible persons can join together in a partnership to get assistance for projects upto Rs. 10 lakhs, subsidy being limited to 15% of project cost subject to a ceiling of Rs. 7500/- per entrepreneur.  The margin money contribution from the beneficiary varies from 5% top 16.50% of the project cost so as to make subsidy and margin money equal to 20% of project cost.  Loans for projects under industry sector are given without collateral security, while for projects under services and business sector loans upto Rs. 1 lakh are given without collateral security.  The scheme provides for preference to be given to weaker sections.  Though there is no reservation for women but as per the existing guidelines, preference is to be given to women candidates.  Reservation of 22.5% for SC/ST and 27% for Other Backward Classes whose loan is sanctioned is provided training under the scheme.  The Scheme is implemented through DICs, State Directorate of Industries and the Bank Branches.

SIDO SCHEMES

 SIDO operates a number of schemes for the SSI sector.  At a glance these are:

 1.         Credit Linked Capital Subsidy Scheme for technology Upgradation-Capital subsidty@ 12% upto Rest. 4.8 lakhs on loans taken for technology upgradation-for individual SSIs.

 2.         Credit Guarantee Scheme- Collateral free composite loans upto a limit of Rest. 25 lakhs-for individual SSIs.

 3.         ISO-9000 Certification Reimbursement scheme-costs of obtaining ISO-9000 Certification are reimbursed to the extent of 75% or Rest. 0.75 lakhs, whichever is lower- for individual SSIs.

 4.            Participation in International fairs-full subsidy on space rent and shipment of exhibits of SSI units-for individual SSIs.

 5.            Purchase and price Preference Policy: This is administered through the single point registration scheme of NSIC.  Under this, 358 items are reserved for exclusive purchase from SSI by Central Government, Other facilities, include tender documents free of cost, exemption from earnest money and security deposit and 15% price preference in Central Government purchases-for individual SSIs.

 6.         Prime Minister’s Rozgar Yojna (PMRY)-Project limit upto Rest. 1 lakh for business and Rest. 2.00 lacs for other activities, subsidy, and margin money upto 20% of project with balance as loan.     Subsidy for NE twice that of rest of India-for indifvidual entrepreneurs & SSIs.

 7.            UPTECH Schemes-For promoting technology upgradation in clusters for a group of SSI units of one industry.

 8.            Integrated infrastructure Development (IID schemes)-Assistance upto 40% or Rest. 2.00 crores whichever is less for setting up industrial estates for SSI units.  For NE, assistance is 80% or Rest. 4.00 crores-for state Government industry associations/NGOs.

 9.         Mini Tool Rooms- Assistance upto 90% of Rest. 9.00 crores, whichever is less for setting up new mini tool rooms-for upgradation of existing Tool Rooms, assistance is 75% or Rest. 7.5 crores- for State Government.

 10.       Testing centers-Assistance upto 50% or Rest. 50 lakhs, whichever is less for setting up Testing centers-for industry associations.

 11.       Sub-Contracting exchanges-One time grant for procurement of hardware and thereafter matching grant on tapering basis 1t 50% 30% and 10% of running expenses, not exceeding Rest. 1.25   lakhs, Rest. 0.75 lakhs and Rs. 0.25 lakhs respectively during the initial three years.  Subject to a ceiling of Rs. 1.57 lakhs per exchange- for industry associations.

 12.       SSI-MDA scheme –The scheme offers funding upto 90% in respect of to and fro air fare for participation by SSI entrepreneurs  in overseas fairs/trade  delegations.  The scheme also provide for funding for producing publicity material (upto 25% of costs) Sector specific studies (upto Rest. 2 lakhs0 and for contesting anti-dumping cases (50% upto Rest. 1 lakh) and reimbursement for testing anti-dumping cases (50% upto Rest. 1 lakh) and reimbursement for barcoding registration (upto 75%) for individual Ssis and associations.

 13.            Assistance to Entrepreneurship Development Institutes-For strengthening training infrastructurein EDIs, assistance upto 50% or Rest. 50 lakhs whichever is less-for State Govrnments.