He also pointed out that many of the programmes do not reach the target audience, as they lack the enthusiasm to innovate their product and services. “They are confident that they can sell their products for domestic consumption. To top it all, there is no competitor for them.”

He added that if Indian SMEs had realized that the government is there at their disposal to support them even in their tough times, they would have seized the opportunity.

All these facts apart, it is clear that getting a scheme passed by the government is a Herculean task. Majority feel availing government schemes is waste of time and money. Bureaucratic apathy, corruption, red-tapism, inefficiency and lacklustre attitude of government officials often create hindrances.

Despite these glitches, the SME sector's growth is so obvious. The government has set the ball rolling by instructing all banks to focus more on SMEs. It has also proposed setting up of a separate Exchange along the lines of BSE and NSE that would help them raise funds for further expansion.

The Exchange is expected be operational soon, being a boon to the 23 million-plus SMEs in the world's second-fastest growing market.

At this juncture, we take the onus to bring about awareness on the benefits and advantages of various government schemes and programmes. Here we list five most important schemes that can help them find a remedy to their financial problems.

1. Credit Guarantee Fund Scheme for MSEs (CGMSE):

It is a collateral-free credit to the micro and small enterprise (MSE) sector. Both the existing and new enterprises are eligible for this scheme. The MSME and Small Industries Development Bank of India (SIDBI) have set up a trust, named Credit Guarantee Fund Trust for MSEs (CGTMSE), to implement this scheme.

The credit facilities that are eligible to be covered are term loans and working capital facility of up to Rs.. 100 lakh per borrowing unit, and extended without any collateral security or third party guarantee to a new or existing micro and small enterprise.

For those units covered under this scheme, which go sick owing to factors beyond their control, rehabilitation assistance extended by the lender could also be covered. If the credit facility exceeds Rs.. 50 lakh, it may still be covered, but the guarantee cover will be extended for credit assistance of Rs.. 50 lakh only.

2. Credit Link Capital Subsidy Scheme for Technology Upgradation

This scheme is primarily aimed at SMEs in the SSI sector to assist in technology upgradation. Every type of entity – sole proprietorship, partnership, cooperative, private and public limited companies – are eligible for it. Under this scheme, SMEs can avail a loan of up to Rs.. 1 crore. It involves a subsidy rate of 15 per cent, which is calculated on the purchase price of plant or machinery.

The admissible capital subsidy under the revised scheme is calculated with reference to purchase price of the plant and machinery. Maximum limit of eligible loan for calculation of subsidy under this scheme is Rs.. 100 lakh.

3. Mini tools room and training centre scheme

The government has decided to assist state governments to set up Mini Tool Room and Training Centres. One such centre can be set up at an estimated cost of around Rs.. 15 crore.

The Central assistance will be in the form of one-time grant-in-aid equal to 90 per cent of the cost of machinery/equipment (restricted to Rs.. 9 crore in each case) in the case of a new Mini Tool Room, and 75 per cent of the cost (restricted to Rs.. 7.50 crore) in case of an existing room to be upgraded.

The objectives this scheme are to manufacture jigs, fixtures cutting tools, gauges, press tools, plastic moulds, forging dies and pressure casting dies, among other tools. It also aims at providing training facility in tool manufacturing and tool design to generate a workforce of skilled workers, supervisors, engineers/designers, etc.

The scheme's another objective is to work as a Nucleus Centre for providing consultancy, information service, documentation. etc, for resolving issues related to toolings of industries in the region.

4. National Award scheme

The ministry of MSME gives away National Awards annually to selected entrepreneurs and enterprises under this scheme.

These are awarded every calendar year to deserving entrepreneurs of MSMEs having permanent registration. Those who have filed Entrepreneurs Memorandum with the authorities notified by respective state governments in accordance with the provisions contained in the MSMED Act 2006 are also eligible. The MSMEs should have been in continuous production or service for four years.

5. Market Development Assistance Scheme for MSMEs

The scheme offers funding for the participation by manufacturing SMEs in international trade fairs/ exhibitions under MSME India stall. It also offers funding for the sector-specific market studies by industry associations/ export promotion councils/ FIEO.

This scheme also lends for initiating/contesting anti-dumping cases by MSME associations. Under this scheme, reimbursement of 75 per cent of one-time registration fee and 75 per cent of annual fees (recurring) paid to GSI by Small and Micro units for the first three years for bar code.