JH MSME Policy 2023

1. MSME as per GoI classification (micro up to Rs 1 crore P&M and Rs 5 crore turnover; small Rs 10/50 crore; medium Rs 50/250 crore)
2. Must obtain Date of Commercial Production (DoP) certificate from State MSME Directorate - Udyam alone is not enough
3. Project must start production during the policy period
4. Expansion/diversification/modernisation needs at least 33% extra P&M investment (plus 33% capacity rise / one new product / 20% capacity + 30% energy or pollution cut)
5. Not for units covered by a separate sectoral policy in force (e.g. tourism, IT)
6. Negative list: saw mills; mobile drilling/concrete units; tobacco/gul/guraku; stencil units; tailoring (except RMG); laundry; photo/video studios, theatres, watch repair; beauty parlours; goods/passenger carriers; guest houses/restaurants; petrol pumps; tobacco/beedi/cigarette; tyre retreading; mining; hard/soft coke; showrooms and service centres; non-refractory brick kilns (fly ash/red mud bricks allowed); petroleum storage; banned items
7. Interest subsidy not for units that are NPA at application
8. SC/ST/women/Divyang top-up only for Jharkhand residents with state-issued certificates (Divyang above 40%)

• Comprehensive Project Investment Subsidy (CPIS): micro 40%, small 35%, medium 30% of FCI, max Rs 15 crore
• SC/ST/women/Divyang: +5% CPIS (max Rs 15.75 crore)
• Interest subsidy 5% a year for 5 years on loans for timely payment: max Rs 25 lakh (micro), Rs 1 crore (small), Rs 2 crore (medium); CGTMSE guarantee fee reimbursed for MSEs
• Stamp duty and registration fee 100% reimbursed on first purchase of land from raiyats/consent award (not JIADA lease or industrial park plots)
• Quality certification 100% up to Rs 25 lakh (ISO, BIS, ZED, BEE, LEED, eco-labels etc.); ZED balance after GoI share: 20% micro, 30% small, 25% medium
• Patent 50% up to Rs 25 lakh per patent (up to Rs 10 lakh at filing stage)
• Electricity duty 100% reimbursed for 5 years
• Export Development Assistance: 75% of stall charges up to Rs 4 lakh per fair; airfare 75% up to Rs 50,000 for two persons per year
• Energy & water audit 75% up to Rs 3 lakh; trademark 100% up to Rs 3 lakh; SME exchange listing 20% up to Rs 10 lakh; ETP 50% up to Rs 25 lakh; ERP 75% up to Rs 1 lakh and ICT 75% up to Rs 5 lakh (CMMI-3 vendors); IGBC green rating consultancy 50% up to Rs 4 lakh

1. CPIS paid in two instalments: 50% in year 1, 50% in year 3 (back-ended)
2. FCI = building, plant & machinery and permanent productive assets (tools, jigs, dies, crane, electrification)
3. DoP application within the time allowed; MSMEs get up to 6 months' relaxation; Director can condone 6 months, Secretary 1 year
4. EDA outlay Rs 2 crore/year, first come first served; apply 45 days before the fair; not if GoI travel support taken

• Online application on Jharkhand Single Window portal
• Date of Commercial Production (DoP) certificate from State MSME Directorate

Udyam registration

• Caste / residential certificate from competent authority of Jharkhand (SC/ST top-up)
• Medical Board certificate of disability above 40% (Divyang top-up)
• Bank loan and interest payment proof (interest subsidy) - implied; full checklist is in the Common Incentive Disbursement Guideline (see the guideline)