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SETH ANANDRAM JAIPURIA COLLEGE
2013-14
MSME Finance in
West Bengal
Rinky Halder
D E PA R T M E N T O F C O M M E R C E ( M O R N I N G ) R O L LN U M B E R ! " ! #
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PROJECT REPORT
(Submitted fo t!e degee of B"#om $onous in %ccounting &
Finance unde t!e 'niesit) of #alcutta*
T$%i& MSME Finan&e in 'e Ben*al
Submitted B)
+ame of t!e #andidate, in.) $alde
egistation +o, 224-1221-0414-11
+ame of t!e #ollege, Set! %nandam /aiuia #ollege (Moning
S!ift*
#ollege oll +o, 101
Sueised B)
+ame of t!e Sueiso, Ms" Saodi)a utta
+ame of t!e #ollege, Set! %nandam /aiuia #ollege
Mont! & ea of Submission, 2014
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A&kn$+led*e,en
5 6ould li.e to ac.no6ledge and t!an. fom t!e deeest otion of m)
!eat to all t!e eole 6!o 6ee al6a)s be!ind me7 6!enee 5 needed
an) !el fo successful comletion of m) o8ect" 9o stat 6it! 6ould li.eto t!an. m) college7 Set! %nandam /aiuia #ollege fo oiding me t!is
ootunit)"
5 6ould li.e to ac.no6ledge t!e follo6ing eole fo t!ei suot and
assistance 6it! t!is o8ect"
Ms" Saodi)a utta7 ofesso of deatment of commece7 S"%"/ #ollege
fo giing me t!is fabulous ootunit) to 6o. on t!is o8ect and fo
guiding me 6!enee 5 needed !e fo suot"
5 6ould also li.e to t!an. t!e di:eent membes of t!e MSME iectoate
of West Bengal and Band!an Financial Seices Pt" ;td fo !eling me
6it! t!e infomation 5 needed" Wit!out t!ei suot 5 6ouldnt be able to
efom as >>>>>>>>>>>>>>>>>>>>>>>>>> >>>>>>>>>>>>>>>>>>>>>>>>>>>
(Signatue of t!e E?amine* (Signatue of t!e
E?amine*
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CONTENTS
#$%P9E 1
1"1 5ntoduction 3
1"2 Bac.gound 4
1"3 ;iteatue eie6 @
1"4 Ab8ectie of t!e Stud)
1" ata and Met!odolog) C
1"@ ;imitations of t!e Stud) D#$%P9E 2
2"1 #oncetual Fame6o. 10
2"2 MSME Finance, 9!e 5ndian Scenaio 11
2"3" MSME Finance, 9!e 5ntenational Scenaio 1
2"4 West Bengal a ne6 ea fo MSME
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C-a%er !
!.!Inr$d/&i$n
Mico7 Small & Medium Enteise in 5ndia eoled aidl) in t!e last
decade" Fom SME t!e eolution to anot!e ne6 efoming secto7 i"e"
MSME !as ceated uite a buGG in 5ndian business scenaio" Ae t!e )eas
t!e ogess of t!e MSME secto scaled a ne6 !eig!t also contibuting to
t!e 5ndian HP" 9!e secto nutues t!e budding enteeneus ceating
emlo)ment fo t!ousands7 t!us ma.ing it an essential secto fo t!e
go6t! of t!e 5ndian econom)" 5n last
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!.0 Ba&k*r$/nd
9!e MSME secto contibutes to t!e go6t! of 5ndian econom) signi
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Finance olic)" Best in t!e class incenties including #aital 5nestment
Subsid)7 5nteest Subsid)7 Waie of Electicit) ut)7 Subsid) on Eneg)
#!ages7 Subsid) fo Emlo)ment Heneation7 Subsid) fo ualit)
5moement and Subsid) on Patent egistation7 and incenties fo
6omen7 minoities7 S#LS9 and Self $el Hou (S$H* enteeneus !aebeen announced in t!e ne6 5ncentie Sc!eme 2013" %lso 6it! t!e
imlementation of #edit Huaantee Fund Sc!eme fo MSME t!e
goenment is t)ing to addess t!e aious
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9!e come!ensie liteatue demonstates t!at MSMEs ae necessa) fo
sustained economic go6t! and deeloment of an) econom) including
5ndia" 9o 8ustif) t!e need of esent stud)7 follo6ing liteatue !as been
eie6ed,
Mali (!442) obseed t!at small and medium enteises (SMEs* and
mico enteises !ae to face inceasing cometition in t!e esent
scenaio of globaliGation7 t!e) !ae to seci
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!.8O7:e&i6e $; -e S/dy
9!e stud) 6ill !ig!lig!t t!e di:eent
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9!e stud) is based on sue) tec!niue and seconda) eseac! data
collected fom aious issues of %nnual eots7 Hoenment 6ebsites7
#iculas b) Minist) and esee Ban. of 5ndia and HaGettes on MSME"9!e stud) consists of anal)sis fom feedbac.s collected" Fo t!e uose
of t!e stud) concened aut!oities !ae been contacted and t!ei ie6s
solicited on di:eent aametes" 9!e met!odolog) adoted includes,
iscussions 6it! t!e concened
%nal)sis of data collected
!.3Li,iai$n $; -e S/dy
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Since segment 6ise inestos7 #edit facilitatos o #oncened
aut!oities 6ee not aailable oeall concet is ta.en fo t!e stud) 5nfomation is atl) based on seconda) data and !ence t!e
aut!enticit) of t!e stud) can be isualiGed and is measuable ;eel of accuac) of t!e esults of eseac! is esticted to t!e
accuac) leel 6it! 6!ic! t!e customes !ae gien t!ei ans6es
and t!e accuac) leel of t!e ans6es cannot be edicted
C-a%er 0
0.!
C$n&e%/al Fra,e+$rk
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0.0MSME Finan&e T-e Indian S&enari$
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Mico7 Small7 Medium Enteises (MSME* ae de
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inestments !as been diected to6ads tec!nological deeloments7
esulting in an imoement in olume and ualit)" Poduction in t!e
MSME secto outaced oeall go6t! in industial oduction" Fo
instance7 t!e secto egisteed a go6t! ate of 11" e cent in F11= t!is
is 3"3 ecentage oints (t* !ig!e t!an go6t! in t!e oeall industialsecto"
9!oug! t!is secto s!o6s !uge otentialit) and attacting inestments7
still t!e secto felts t!e esence of funding ga 6!ic! obstucts t!e
go6t! of t!e secto" 5n 20107 t!e Pime Ministe of 5ndia aointed a tas.
foce set u unde t!e c!aimans!i of t!e Pincial Seceta)7 to consideaious issues aised b) MSME associations7 discuss 6it! t!e sta.e!oldes
and c!al. out an action agenda" Ane of t!e .e) issues identi
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9!us aailabilit) of fund at cometitie ates and fom man) souces is an
imotant asect of MSME
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5+ 6it! a ma?imum subsid) of 1 la.! 5+"
PMEHP 9ainingPogamme
Bene
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(#H9MSE* 5+" Wit! egad to loans u to la.! 5+ to mico units7t!e coeage is CI" ;oans guaanteed unde t!e sc!emeca) Geo ecent is. 6eig!t and oision fo t!e lendinginstitution fo t!e guaanteed otion" 9!e sc!eme alsofacilitates lending institutions b) t!e ealuation of t!ecedit oosals on t!e basis of intinsic meits of t!e
o8ects7 at!e t!an meel) on adeuac) of collateals"
esee Ban. of 5ndiaual Planning and#edit eatment
Poiding e
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Fut!emoe7 t!e numbe of MSME accounts need to egiste 10"0 e cent
go6t! annuall)" Some of t!e ma8o foms of MSME
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0.1MSME Finan&e T-e Inernai$nal
S&enari$
9!e 5ntenational ictue of MSME is muc! osie t!an t!e 5ndian scenaio"
Most of t!e Euoean nation7 Sout! East %sian #ounties o t!e 'nited
States
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Some of t!e ecent olicies o tends t!at !ae too. lace fo
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Saudi %abia is setting u ne6 labou 6age olic) 6!ic! is onl) going to
!el t!e MSMEs to go6"
0.8'e Ben*al > a ne+ era ;$r MSME
=nan&e
West Bengal is t!e land of ossibilities" 5t !as got t!e otentialit) to
become t!e leading state in t!e MSME secto" a) b) da) t!e MSMEoductiit) ate is inceasing in West Bengal" %lso t!e Hoenment is
focusing mainl) on t!e deeloment of t!e MSMEs fo t!e futue go6t! of
its industialisation olic)" West Bengal not onl) !as a lage numbe of not
onl) egisteed but also lage numbes in esect of un egisteed MSME
units7 t!at too in aied sectos li.e t!e manufactuing and t!e industies"
ue to t!is aied aoac! and also due to t!e esence of a ic! cultue
and tadition in t!e State it en8o)s a diesi
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West Bengal !as 2@ Public Secto Ban.s7 1C eno6ned Piate Ban.s
ae oeating in t!e State7 3 egional ual Ban.s7 1C #o-oeatie
ban.s and C Foeign Ban.s oeating acoss State
9!e #edit-eosit atio (#* of t!e State is aound @4I7 ceating
!uge otential fo cedit aailabilit) fo industial
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a* Sub8ect to a ceiling of s 0 ;a.! fo Small Enteise"
b* 20I additional subsid) on admissible subsid) fo all enteises 6!oll)
o6ned b) 6omen7 S#LS9 and minoit) communit) enteeneus"
c* 9!ese enteeneus 6ill also get incentie fo setting u of units inRone %& Bas follo6s,
- Mico 'nit 1I
- Small 'nit 10I
d* 9!is incentie 6ould be in addition to 6!at t!e units get fom HA5
unde an) ot!e sc!eme
INTEREST SUBSID@ ON TERM LOAN
Mico & Small Enteise
Q Subention of @I fo all units and " I fo units set u in t!e # and
Rone disticts fo )eas"
Medium Enteise
Q Rone B & # 2I of total 9em ;oan 5nteest sub8ect to ceiling of s"
1"00 ;a.! e )ea fo )eas"
Q Rone 2I of total 9em ;oan 5nteest sub8ect to ceiling of s" 1"00
;a.! e )ea fo )eas"
ELECTRICIT@ DUT@
Mico & Small Enteise
Q 0I 6aie fo )s fo Rones % & B & I fo Rones # & "
Q 9!e units set u in an) Gone and 6!oll) o6ned b) 6omen7 S#LS9 and
minoit) communit) enteeneus 6ill be eligible fo 100I 6aie fo
)eas
Medium Enteise
Q Rone B & # - 100I 6aie of electicit) on t!e electicit) consumtion
fo )eas sub8ect to ma?imum of s" 2"00 ;a.! e )ea o s" 1"2#oe fo )eas
Q Rone 100I 6aie of electicit) dut) on t!e electicit) consumtion
fo )eas and I 6aie fom t!e si?t! )ea u to tent! )ea sub8ect to
ma?imum of s" 0"00 ;a.! e )ea o s" 2" #oe in )eas
PO'ER SUBSID@
Mico & Small Enteise
Q Subsid) of s" 1"00 L J6! fo Rone % & B
Q Subsid) of s" 1"0 L J6! fo units in Rone # &
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Fo )eas= sub8ect to a ceiling of s 20 ;a.! e annum fo small
enteises and s 30;a.! fo medium enteises"
INCENTI9E FOR ENERG@ EFFICIENC@
Mico & Small Enteise
Q 0I e-imbusement of t!e cost of eneg) audit undeta.en b) a
ceti
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Mico & Small Enteise
Q %ssistance u to 0I o s 2 ;a.! ma?imum fo 6ate conseationL
ollution contol measues
CLUSTER DE9ELOPMENT
Q Suot u to s" coe fo common infastuctue suc! as oad7 o6e
etc fo eac! mico and small industial cluste in Rone B and #"
Q Suot u to s" 10 coe fo common infastuctue suc! as oad7
o6e etc fo eac! mico and small industial cluste in Rone
STANDARD UALIT@ COMPLIANCE
Mico & Small Enteise
Q 0I of cost u to a ma?imum of s" la.! fo obtaining ceti
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C-a%er 1
1.!Band-an
+o67 stating aboe fe6 of t!e incentie olicies and t!e mention of t!e
bodies loo.ing afte MSME
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VV#ig. represents the increasing no. of branches year on year.
VV#ig.
represents
the
increasing
no. of
borro!ers( year on year.
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BFSP; lends onl) to 6omen clients7 and imail) fo income geneating
uoses" 9!e selection of clients is based on t!ei income leels and
ea)ment caacities" Poo %sset-less 6omen ae de
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Belo6 6e 6ill see a summaised fomat of t!ese ;oan sc!emes and
amount of ;oan disbused in one
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1.1Sa,ridd-i Finan&e ;$r MSME
9!is is an initiatie of mico-
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Band!an b) enlisting !e name in t!e neab) gou XJe)aY and too. a
Suc!ana loan of s" 000 to stengt!en t!ei business" 9!en gaduall)
6it! t!ei !ad e:ots t!e) gaduated to aail S!isti loan and
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C-a%er #
#.!BIBLIOGRAPH@
1"!tt,LLmsse6b"ogL!tmL!ome"!tml
2.!tt,LLmsse6b"ogL!tmLactiities"!tml
3"!tt,LLmsse6b"ogL!tmLassistance"!tml
4"!tt,LLmsse6b"ogL!tmLmsme"!tml
"!tt,LL666"dcmsme"go"inLssiindiaLmsme>in"!tm
@"!tt,LLdcmsme"go"inLannualbot!"!tml
"!tt,LL666"dcmsme"go"inLBudget&%llocation"!tm
C"!tt,LLdcmsme"go"inLsc!emesLsc!emes>scm"!tm
D"!tt,LL666"dcmsme"go"inLublicationsLublication"!tm
10"!tt,LL666"dcmsme"go"inLssiindiaLmsme>in"!tm
11"!tt,LL666"band!anmf"comL
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http://mssewb.org/htm/assistance.htmlhttp://mssewb.org/htm/msme.htmlhttp://www.dcmsme.gov.in/ssiindia/msme_in.htmhttp://dcmsme.gov.in/annualboth.htmlhttp://www.dcmsme.gov.in/Budget&Allocation.htmhttp://dcmsme.gov.in/schemes/schemes_scm.htmhttp://www.dcmsme.gov.in/publications/publication.htmhttp://www.dcmsme.gov.in/ssiindia/msme_in.htmhttp://www.bandhanmf.com/http://mssewb.org/htm/assistance.htmlhttp://mssewb.org/htm/msme.htmlhttp://www.dcmsme.gov.in/ssiindia/msme_in.htmhttp://dcmsme.gov.in/annualboth.htmlhttp://www.dcmsme.gov.in/Budget&Allocation.htmhttp://dcmsme.gov.in/schemes/schemes_scm.htmhttp://www.dcmsme.gov.in/publications/publication.htmhttp://www.dcmsme.gov.in/ssiindia/msme_in.htmhttp://www.bandhanmf.com/8/12/2019 Finance in MSME in West Bengal (2) (1)
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ANNEURE!B
STUDENTS DECLARATION
5 !eeb) declae t!at t!e Po8ect Wo. 6it! t!e title XMSME Finance in
West BengalY submitted b) me fo t!e atial ful
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Place, Jol.ata
ate,
%++ET'E 1%
S'PEK5SAS E#;%%95A+
9!is is to cetif) t!at Ms"in.) $alde a student of B"#om $onous in%ccounting & Finance of Set! %nandam /aiuia #ollege unde t!e
'niesit) of #alcutta !as 6o.ed unde m) sueision and guidance fo
!e o8ect 6o. and !as eaed a o8ect eot titled XMSME Finance in
West BengalY 6!ic! s!e is submitting7 is !e genuine and oiginal 6o. to
t!e best of m) .no6ledge"
Signatue,
Place, Jol.ata +ame, Ms"Saodi)a
utta
ate, esignation,
Pofesso
+ame of #ollege,
Set!
%nandam /aiuia #ollege