Government schemes and incentives for promotion of entrepreneurship

Government schemes and incentives for promotion of entrepreneurship

The various important incentives and subsidies available to the small scale industrial units are listed below:

· Capital Investment Subsidy Scheme Offered by Central
Government
One of the policy measures designed for the development of backward areas is provision of capital investment subsidy. Under this scheme , a subsidy will be granted on the capital investment. A grant of 10% of the capital invested in industrial units is available in the areas notified y the Central and State
Governments.

· Sales Tax Exemptions
New small scale units located in places outside some specified distance from the cities, are eligible to get sales tax concessions and exemption. Interest Free Sales Tax Loan is given for the first five years of commencement of production, which is recoverable in 3 equal annual instalments from 6th year
onwards. Some products like life saving drugs and essential chemicals are exempted from sales tax. In order to boost small scale sector, the Government has reduced sales tax on different items, as package of incentive.

· Provision of Seed Capital
The financial institutions provide a sum towards marginal money to obtain loan. The initial capital helps the poor but deserving entrepreneurs to enter into business and industry.

· Provision of Concessional Power and Water
New units started in the notified backward areas are eligible to get power as well as water at concessional rates in order to have uninterrupted production.

· Purchase of raw materials
Scarce raw materials like iron & steel, coke, match wax, potassium chloride, caustic soda, fatty acids etc. are produced and supplied to SSI Units.

·Allotment of Industrial Sheds
Work shed is the basic infrastructure required for an industry. The Government allots work sheds to the entrepreneurs. At present, in our country, there are mainly two agencies offering this facility to the
entrepreneurs. They are :
(i) Directorate of Industry and Commerce.
(ii) Small Industries Development Corporation (SIDCO).

· Export Incentives and Subsidies
With a view to boost the export market and earn foreign exchange, the Government is granting subsidies to the units exporting goods.

· Subsidy for Power Generators
In many states, the industrial units suffer from power shortages, power shedding and fluctuation problems. Hence, the government is giving loans to purchase “Generators” to solve the power problems. The entrepreneurs can obtain this subsidy on easy terms and install a generator in their units.

· Special Incentives to Women Entrepreneurs
Special incentives are offered to Women entrepreneurs who would like to join in the manufacturing line. Government agencies as well as private voluntary agencies also do provide various assistances including vocational training to women.

· Exemption from Stamp Duty
Government example the entrepreneurs from paying stamp duty for the registration of plots allotted to them by the State-owned financial institutions.

·Special Concessions to Scheduled Caste and Scheduled Tribe Entrepreneurs
As per current provisions, SC/ST entrepreneurs need not pay 25% of the margin money requirements. They have to pay just 10% as margin money for availing the financial assistance. There is also reduction in the rate of interest to the extent of 1.5% provided the units are started in the notified backward
areas.

· Preferential Purchase from SSI Units
The Government of India had reserved more than 900 items for the exclusive production of SSI units in accordance with Industrial Policy Resolutions. In the interest of growth of small scale units, Government departments make preferential purchases from this sector. The SSI units are also given price preference up to a maximum of 15% in the case of items purchase from both small and large scale units.

SWOT

SWOT ANALYSIS
A  comprehensive  study  of  the  internal  and  external  environment  is  an important  part  of  the  strategic  planning  process.  Environmental  factors  internal to  the  firm  usually  can  be  classified  as  strengths  (S)  or  weaknesses  (W),  and those  external  to  the  firm  can  be  classified  as  opportunities  (O)  or  threats  (T). Such  an  analysis  of  the  strategic  environment  is  referred  to  as  a  SWOT analysis.

STRENGTH 
A  firm‘s  strengths  are  its  resources  and  capabilities  that  can  be  used  as  a basis  for  developing  a  competitive  advantage.  Examples  of  such  strengths include: -  Brand  name -  Good  reputation  among customers -  Cost  advantage -  Competitive quality -  Accessibility  to distribution  networks.

Weakness
The absence of certain strengths may be viewed as a weakness. For example, each of the following may be considered weaknesses:
- Unpopular brand
- Poor reputation among customers.
- High cost
- Lack of access to distribution network.


Opportunities 

The external environmental analysis may reveal certain new opportunities for profit and growth. Some examples of such opportunities include:
- An unfulfilled customer need
- Arrival of new technologies
- Loosening of regulations
- Removal of international trade barriers.

Threats

Changes in the external environmental also may present threats to the firm. Some examples of such threats include:
- Shifts in customer tastes away from the firm‘s products - Emergence of substitute products
- New regulations
- Increased trade barriers

Export and Import policies of Fisheries Sector

Export and Import policies of Fisheries Sector

Exim policy 

The exim policy of Foreign Trade Policy is a set of guidelines and instructions established by the DGFT(Directorate General of foreign trade) in matters related to the import and export of goods in India. and is regulated by the Foreign Trade Development and Regulation Act, 1992. 

   DGFT is the main governing body in matters related to Exim Policy. The main objective of this Act is to provide the development and regulation of foreign trade by facilitating imports into, and augmenting exports from India, thereby creating favourable balance of payment positions. This Act has replaced the earlier law known as the imports and Exports (Control) Act 1947. Indian EXIM Policy contains various policy related decisions taken by the Government in the sphere of foreign trade, i.e., with respect to imports and exports from the country and more specifically, export promotion measures, policies and procedures related thereto. Trade Policy is prepared and announced by the Central Government (Ministry of Commerce).

Promotional Measures of Exim Policy 2004-2009

The Government of India has set up several institutions whose main functions

are to help an exporter in his work. It would be advisable for an exporter to

acquaint him with these institutions and the nature of help that they can

provide so that he can initially contact them and have a clear picture of what

help he can expect of the organized sources in his export effort. Some of

these institutions are as follows.

- Export Promotion Councils
- Commodity Boards
- Marine Products Export Development authority
- Agricultural & Processed Food Products Export Development Authority
- Indian Institute of Foreign Trade
- India Trade Promotion Organization (ITPO)
- National Centre for Trade Information (NCTI)
- Export Credit Guarantee Corporation (ECGC)
- Export-Import Bank
- Export Inspection Council
- Indian Council of Arbitration
- Federation of Indian Export Organizations
- Department of Commercial Intelligence and Statistics
- Directorate General of Shipping
- Freight Investigation Bureau

.Duty Exemption / Remission Schemes of Exim Policy

The Duty Exemption Scheme enables import of inputs required for export
production. It includes the following exemptions.

Duty Drawback:- The Duty Drawback Scheme is administered by the
Directorate of Drawback, Ministry of Finance. Under Duty Drawback scheme,
an exporter is entitled to claim Indian Customs Duty paid on the imported
goods and Central Excise Duty paid on indigenous raw materials or
components.

Excise Duty Refund:- Excise Duty is a tax imposed by the Central
Government on goods manufactured in India. Excise duty is collected at
source, i.e., before removal of goods from the factory premises. Export goods
are totally exempted from central excise duty.

Octroi Exemption:- Octroi is a duty paid on manufactured goods, when they
enter the municipal limits of a city or a town. However, export goods are
exempted from Octroi.

Duty Remission Scheme: It enables post export replenishment/remission of
duty on inputs used in the export product.

Duty Entitlement Pass Book (DEPB)
The objective of DEPB Scheme is to neutralize the incidence of basic custom
duty on the import content of the exported products.

Duty free Replenishment certificate(DFRC)
Under this scheme, import incentives are given to the exporter for the import
of inputs used in the manufacture of goods without payment of basic customs
duty. Duty Free Replenishment Certificate (DFRC) shall be available for
exports only up to 30.04.2006 and from 01.05.2006 this scheme is being
replaced by the Duty Free Import Authorization (DFIA)

Duty Free Import Authorisation(DFIA)
Effective from 1st May, 2006, Duty Free Import Authorisation is issued to allow
duty free import of inputs which are used in the manufacture of the export
product (making normal allowance for wastage), and fuel, energy, catalyst
etc., which are consumed or utilized in the course of their use to obtain the
export product. Duty Free Import Authorisation is issued on the basis of
inputs and export items given under Standard Input and Output Norms(SION).

Export Promotion Capital Goods Scheme (EPCG) of Exim Policy 2004- 2009
Introduced in the EXIM policy of 1992-97, Export Promotion Capital Goods
Scheme(EPCG) enables exporters to import machinery and other capital
goods for export production at concessional or no customs duties at all. This
facility is subject to export obligation, i.e., the exporter is required to guarantee
exports of certain minimum value, which is in multiple of total value of capital
goods imported.
Capital goods imported under EPCG Scheme are subject to actual user
condition and the same cannot be transferred / sold till the fulfillment of export
obligation specified in the licence. In order to ensure that the capital goods
imported under EPCG Scheme, the licence holder is required to produce
certificate from the jurisdictional Central Excise Authority(CEA) or Chartered
Engineer(CE) confirming installation of such capital goods in the declared

premises.

Broad Based Extension System ( BBE )

Broad Based Extension System ( BBE )

(Introduced under Tamil Nadu Agricultural Development Project – TNADP)
This system has been introduced in Tamil Nadu State from 1.4.1991. Government of
Tamil Nadu has entered into an agreement with World Bank through Government of India for
implementing the project for seven years from 1991.

Need for Broad Based System
The Training and Visit system recognised the farm family approach rather than ‘crop
approach’ and ‘area approach’. In irrigated areas the village extension workers have full time
job because the agricultural crops occupy 9-10 months in a year. In dryland the village extension
workers do not have full time opportunities since the crops occupy 4-6 months. The messages
delivered to the farmers were crop oriented and less importance was given to allied activities.
How broad based extension is an important over T & V System?
This system aims at rectifying the defects. Role of subject matter specialist is amplified
and they are invited to formulate messages suitable to their land based activities. The village
extension workers will have full time job by offering messages during lean season. The concept
of broad based education lies in formulating and delivering composite messages to the farmers to
meet the needs of their full agricultural environment.

Principles of broad based extension
1. Adoption of an integrated farming systems approach for the generation of relevant composite
messages.
2. Broadening the range of subjects from agricultural crops to all allied subjects.
3. Improvement of the effective communication of the farming community.
4. Introduction of resource based planning down to sub-division level.
5. Encourages participation of non-governmental organisation in all agricultural extension
activities.

Objectives of the broad-based extension
1. To increase the farm income.
2. To solve problems of the farming community.
3. To make extension system more cost effective.
4. To upgrade the quality of the extension workers.
5. To popularise integrated farming system approach.

Scope of the broad based extension system
The activities of all land based departments will be unified in the long run. Duplication
of efforts and unhealthy competitions will be avoided. Agricultural department offers full
support to the activities of all the line departments.
Methodology: Broad based extension system help the farmers in getting multiple message
needed to improve their overall economy besides helping to grow agricultural crops. Thus, the
farmers are encouraged in sericultural activities, growing good fodders, animal husbandry
activities and growing fish in the farm ponds etc. These activities enable the farm community to
get extra income.

Need for the broad-based extension: This system was formed to encourage the activities of the
farmers. Different departments compete with one another and they have proposed to increase the
staff component to contact as many farmers as possible. World Bank and Government of India
thought to utilise the well established extension agency and bringing all extension and land based
activities together.

Development of Women and Children in Rural Areas (DWCRA) (1982)

Development of Women and Children in Rural Areas (DWCRA) (1982)

The need for introducing specific programmes for the development of poor women was
felt. Many progarammes were launched for them. One such programme formulated and
launched since September 1982 in DWCRA.

It aims at motivating and assisting women to engage themselves in a productive activity
for earning a substantial income as well as to improve the quality of their own and children’s life.
Thus, though the economic activity is the priority, the social betterment of the women and their
children is also aimed at. It is partly supported by UNICEF and is jointly financed by Union and
State Governments. It operates in conjunction with IRDP and TRYSEM.
The main features of this programme are:

(i) Women of identified poor families are organised into groups of 15-20 each for taking up
income generating activities suited to their skills and aptitude.
(ii) Group members are given training usually under TRYSEM.
(iii)One time grant of Rs.15, 000 is provided for each group as revolving fund for purchase of
raw materials, marketing, child care etc. This amount is shared equally by Union and
State Government and UNICEF.
(iv)Each group selects one of its members as group organiser who is to help women in the
selection of economic activities suited to their skills and aptitude, procurement of raw
materials etc.
(v) Besides engaging in economic activity, each group is expected to be recipient of benefits
of other development and welfare programmes.
(vi)Multi-purpose centre are being set up to serve as the central place for the working of
women groups.

The list of income-generating activities undertaken under the scheme are: tailoring,
embroidery, ready-made garments, pickle making, papad making, bakery, candle making, soap
making, chalk making, envelop making, match box making, knitting, weaving, basket making, agarbathi making, poultry, dairy, piggery, goat rearing, bee keeping, mushroom production, fruit
and vegetables processing, etc.

Agricultural technology management agency (ATMA)

Agricultural technology management agency (ATMA)

Agricultural Technology Management Agency (ATMA) is one of the innovations
technology dissemination components of National Agricultural Technology Project (NATP) functions as a registered society at District level and serves as a focal point for integrating
research and extension activities and helps in decentralizing the management of agricultural
technology transfer. The members of ATMA include the representatives of Department of
Agriculture, Animal Husbandry, Horticulture, and Fisheries. Each research-extension unit would
retain its institutional identity and the management committee of ATMA would plan extension
activities. At present ATMA is in operation in twenty-four district spread over six states viz.,
Andhra Pradesh, Bihar, Orissa, Maharashtra, Punjab and Himachal Pradesh.

Objectives
The objectives of ATMA are:
1. To strengthen research – extension – farmer linkages
2. To provide an effective mechanism for co-ordination and management of activities of
different agencies involved in technology adaption / validation and dissemination at the
district level and below.
3. To increase the quality and type of technologies being disseminated.
4. To move towards shared ownership of the agricultural technology system by key
shareholders.
5. To develop new partnerships with the private institutions including NGOs.
Constitution

Under ATMA, there is a provision for Governing Board which functions as a policy
making body and provides guidance as well as reviews progress and functioning of ATMA. A
separate Management Committee constituted under ATMA would be responsible for planning
and reviewing of the day to day activities. The composition and key functions of Governing
Board and Management Committee as per ICAR (1998), NATP document are given below.
ATMA Governing Board
Composition
1. District magistrate / Collector                     Chairman
2. Chief Executive Officer (CEO)                  Vice-Chairman
3. Joint Director / Deputy Director (Agri.)     Member
4. A member from ZRS / KVk                            " 
5. One farmer representative                               "
6. One livestock producer                                    "
7. One horticulture farmer                                   "
8. Representative of women farmer interest group              "
9. One SC/ST farmer representative                   "
10. A Representative of NGO                             "
11. Lead Bank Officer of the District                  "
12. A representative of NGO "
13. Representative of Input Supply Association  "
14. Representative if Input Supply Association    "
15. Project Director of ATMA                               "
16. One Fisheries / Sericulture representative       Member-Secretary-Cum Treasurer member


Key functions:
The Key function of ATMA Governing Board would include the following functions
and tasks.
1. Review and approve strategic and annual work plans that are prepared and submitted by
the participating units.
2. Receive and review annual reports carried out by the participating units, providing
feedback and direction to the participating units, a needed, about the various research and
extension activities being carried out within the district.
3. Receive and allocate project funds to carry out priority research, extension and related
activities within the District.
4. Foster the organization and development of farmer's interest groups and farmers
organization within the district.
5. Facilitate the greater involvement of private sector and firms and organizations in providing
inputs, technical support, agro-forestry and marketing services to farmers.
6. Encourage agriculture lending institutions to increase the availability of capital to
resource poor and marginal farmers, especially children and women farmers.
7. Encourage each line department, plus the KVK and ZRS to establish farmer advisory
committee to provide feedback and input into their respective research and extension
programme.
8. Enter into contract and agreements as appropriate to promote and support agricultural
development activity within district.
9. Identify other sources of financial support that would help ensure the financial
sustainability of ATMA and its participating units.
10. Establishing revolving funds / accounts for each participating unit, and encourage each
unit to make available technical services, such as artificial insemination or soil testing, on
a cost recovery basis moving towards full cost recovery in a phased manner.
11. Arrange for the periodic audit of ATMA's financial accounts and
12. Adopt and amend the rules and by-laws for the ATMA.


Key functions
The key functions and taks to be carried out by the ATMA management committee
would include the following:
1. Carry out periodic Participatory Rural Appraisal to identify the problems and constraints
faced by different socio-economic groups and farmers within the district.
2. Prepare an integrated, strategic technology plan for the district that would specify short
and medium term adaptive research as well as technology validation and refinement and
extension priorities for the district, these priorities should reflect the important farmer's
constraints, identified during the PRA.
3. Prepare annual work plans that would be submitted to ATMA Governing Board for
review position, modification and approval.
4. Maintain appropriate project accounts for submission to technology dissemination unit
for audit purposes.
5. Coordinate the execution of this annual work plan through participant line departments,
ZRS, KVKs, NGOs, FIGs /FOs and allied institutions, including private sector firms.
6. Establish coordinating mechanism at the block level, such as Farmer Advisory Centre,
that would integrate extension and technology transfer activities at the block and village
levels.
7. Provide annual performance reports to the Governing Board outlining the various
research, extension and related activities that were actually carried out, including target
achieved.
8. Provide secretariat to governing board and initiate action or policy direction, investment

decision and other guidance received from the board.

Salient Features of ATMS
1. Creating Farmer Advisory Committee to improve feed back.
2. Using NGOs to organize farmers.
3. Encouraging private sector involvement in technology transfer.
4. Validation and refining technologies through research units in the district.
5. Bottom up planning procedure.
6. Increased use of Information Technology (ARIS, WWW)
7. In-service training to increase staff competence.
8. Developing new Public-Private partnerships.

Swarnjayanti Gram Swarozgar Yojana (SGSY)

Swarnjayanti Gram Swarozgar Yojana (SGSY)

Objective
The objective of Swarnjayanti Gram Swarozgar Yojana (SGSY) is to provide sustainable
income to the rural poor. The program aims at establishing a large number of micro-enterprises
in the rural areas, building upon the potential of the rural poor. It is envisaged that every family
assisted under SGSY will be brought above the poverty line in a period of three years.

Scope
Launched on 1st April 1999, the program replaces the earlier self-employment and allied
program.
[Integrated Rural Development Program (IRDP), Training of Rural Youth for Self
Employment (TRYSEM), Development of Woman and Children in Rural Areas (DWCRA),
Supply of Integrated Tool-kit for Rural Artisans (SITRA), Ganga Kalyan Yojana (GKY) and
Million Well Scheme (MWS), which are no longer in operation. The program covers families
below poverty line in operation. The country. Within this target group, reserving 50 per cent of
benefits for SCs/ STs, 40 per cent for women and three per cent for physically handicapped
persons has provided special safeguards. Subject to availability of funds. It is proposed to
cover 30 per cent of the rural poor in each block in the next 5 years.]

Strategy
SGSY is a Credit-cum-subsidy program. It covers all aspects of self-employment, such as
organization of the poor into self-help groups, training, credit technology, infrastructure and
marketing. Efforts would be made to involve women members in each self-help group. SGSY
lays emphasis on activity clusters. Four / five activities will be identified for each block with the
approval of Panchayat Smitis. The Gram Sabha will authenticate the list of families below
poverty line identified in BPL census. Identification of individual families suitable for each key
activity will be made through a participatory process. Closer attention will be paid skill
development of the beneficiaries known as swarozgaris and their technology and marketing
needs.