MSME ministry to fund innovative entrepreneurship ideas

The Ministry of Micro, Small and Medium Enterprises (MSME) has commenced a programme to promote the transformation of novel entrepreneurship ideas into business ventures by funding the projects.

The endeavour aims at encouraging engineering and management professionals to think freely and develop newer services and products to enrich the economy.

The flagship scheme, under the National Manufacturing Competitiveness Programme (NMCP), envisages providing up to Rs 5 crore to the eligible enterprises/professionals after due screening of the proposed ventures.

The ministry has also roped in four leading technical institutes of Uttar Pradesh among 21 other technical institutions across the country for idea development.

MSME Kanpur Regional Director Gorakh Prasad told Business Standard that each institute was expected to propose at least ten business ideas in a calendar year. The proposed idea will then undergo dual screening by the state government and central screening committee constituted for the purpose.

“The ministry will provide financing of projects after the central screening committee vouches the claims under the proposal. We will also provide funding for setting up small industries based on the proposal until it becomes self-sustaining,” said Prasad.

The salient feature of the financing scheme is that the funds disbursed would not be repaid unlike the loans forwarded by banks and other lending institutions.

According to Prasad, the scheme has been started to encourage entrepreneurship skills among the professionals who currently prefer working for larger conglomerates.

“The proposed programme is expected to contribute immensely towards development of managerial skills and amelioration of ailing small and medium enterprises (SMEs) in the country,” he said.