IndiaFilings » Learn » Government Initiatives » Procurement and Marketing Support Scheme

Procurement and Marketing Support Scheme

Procurement and Marketing Support Scheme

Procurement and Marketing Support Scheme

Marketing is a strategic tool for the development of business as it is critical for the growth and survival of MSMEs. Due to insufficient information, scarcity of resources and unorganised ways of selling/ marketing, the MSME sector faces obstacles in exploring new markets and in retaining the existing ones. To avoid all this, the Procurement and Marketing Support Scheme has been introduced to advance the marketability of services and products in the MSME sector.

Objective of the Scheme

The following are the objectives of the scheme.

  • Promoting new market access initiatives like organising/ participation in National/ International Trade Fairs/ Exhibition/ MSME Expo. Etc.
  • Creating awareness and to educate the MSMEs about the importance/ methods/ process of packaging in marketing, import-export policy and procedure, latest packaging technology, GeM Portal, MSME conclave.
  • Creating awareness about trade fairs, bar code, digital advertising, e-marketing, GST, GeM portal, public procurement policy and other related topics etc.

Eligibility Condition

Manufacturing/ service sector MSEs registered on the Udyog Aadhaar (UAN) Portal.

Marketability Enhancement

Participation of individual MSEs in Domestic trade fairs/ exhibition across the country.


Scale of Assistance

Charges for Space Rent 80% of the space rent is paid for General category units and 100% for SC/ ST/ women/ NER/ PH units limited to Rs. 30,000 or whichever is less. The space rent will be subjected to minimum booth/ stall size provided by the organiser.
Contingency expenditure 100% contingency expenditure for all kinds of units that are subjected to a maximum of Rs. 15,000.
An MSE would be permitted for a maximum of two events in a year and submit their claim online in the prescribed format within a month from the date of conclusion of the event.

Organising/ participation in trade fairs/ exhibition by the Ministry/ office of DC/ Government organisations.


Scale of Assistance

Charges for Space Rent

  • The implementing agency hires bare space/ built-up space from the event organiser/ any other agency and mobilises the participating units.
  • The maximum limit of the hiring of full space to organise/ participate in regional/ national/ international events will be Rs. 15 lakh, 25 lakhs and Rs. 40 lakh.
  • The participating units will be offered space rent subsidy at 80% for General category units and 100% for ST/ SC/ women/ NER/ PH units subject to one booth/ stall per unit and maximum booth/ stall size.
  • The exclusive trade fairs for Self Help Groups (SHGs)/ artisans/ NER MSEs will be held with 100% space rent subsidy.

Advertising and Publicity

Rs. 15 lakh maximum or the actual whichever is less for wide publicity of the event and various other related activities such as cultural program etc.

Approval of Empowered Committee will be required for exceeding ceiling limit subject to a limit of maximum 10-15%.

Capacity building of MSMEs in modern packing technique.

Eligible Items Scale of Assistance
Unit-based interventions for specific packaging requirements 80% of the total cost paid to empanelled agency/ consultancy organisation for General category units and 100% for ST/ SC/ Women/ NER/ PH units limited to Rs. 50,000 or actual whichever is less for packaging consultancy.

Development of Marketing Haats.

Eligible Items Scale of Assistance
In the initial phase, upgradation/ renovation/ modification of the existing facilities in marketing haats For upgradation/ renovation/ modification in existing facilities maximum sanction amount will be Rs. 10 lakhs/ haat/city or actual whichever is less depending n the estimates that are prepared by the Government.
The selection of Haats will be made by the implementing agency using a committee consisting of Director MSME-DI as the Chairman and Member from Directorate of Industries and representatives of the local body, etc. The final approval of the Competent Authority will be required.

Vendor Development Program

Type of VDPs Program Scale of Assistance
State level vendor Development Programme One day Sanction of Rs. 30,000 per programme
National Level Vendor Development Programme 2-3 days Consent per plan for organising these programmes would be Rs. 7 lakh maximum for class ‘A’ city and Rs. 5 lakh for other cities including J&K/ NER/ HP and minimum recovery of 25% and 10% respectively.
MSME – DI will make sure the participation of all stakeholders

International/ National Seminars/ Programs

Item Scale of Assistance
International/ National/workshops/ seminars Rs. 2 lakh per workshop/ seminar anywhere in the country/ or actual whichever is lower. An additional cost of Rs. 1.5 lakh towards the cost of air travel, boarding and lodging etc. for an international level event. The Government/ non Government reputed organisations having at least five years of experience in organising subject-specific workshops/ seminars will be hired.
The limit may be enhanced with the approval of Empowered Committee subject to a limit of maximum 10-15%.

Awareness Programs

To create an overall awareness about the trade fairs, digital advertising, GST, e-marketing platform, GeM portal and other related topics.

Intake Capacity Program Duration Scale of Assistance
Minimum of 30 MSME participants One Day Financial support of Rs. 70,000 per program whenever important subject to expenses according to the Government o India existing rule. The plan would be conducted by the implementing agency. The honorarium and travelling allowance to guest faculty other than the Government official will be applicable as per the Government’s rule.
The limit may be enhanced with the approval of the Empowered committee subject to a limit of maximum 10-15%.

Empowered Committee

The Empowered Committee will be the final authority for approval of proposals. The Empowered Committee Is chaired by AS&DC (MSME) with JS (SME) of his/ her representative. ADC (Market Service) or his/ her representative and JDC (Export Promotion) of his/ her representative and Director (Planning and Marketing), NSIC or his/ her representative and Nominee of IFW as members. Secretariat service that is offered by Market Service Division of Office of DC (MSME).

Provision for MSME-Development Institutes

An expenditure of Rs. 30,000, or actual, whichever is less, shall be allowed towards the stall that is charged and TA/DA etc. of the officer as per applicable rules. The scheme will be monitored by an integrated MIS by the implementing agency and the scheme management unit set up at the office of the DC (MSME) within one month with dashboard/ link to IFW for monitoring.

DC MSME develops digital events management MIS so that all events across India could be monitor efficiently without any data breach and put in place in one month and dashboard/ link to IFW.