National MSME Awards Scheme - Eligibility & Application [2023]

With the objective to promote MSMEs in the country, the Ministry of MSMEs has taken laudable measures to identify micro, small, and medium enterprises that are significantly driving India's economic growth. These awards and monetary encouragement also hold enterprises to a high standard that furthers their development. 

MSMEs are the backbone of the new India that is inching its way into becoming one of the biggest economies in the world. Providing the necessary support to these MSMEs to grow and flourish and contribute to the country’s development is essential. As such, government initiatives such as the National MSME Awards Scheme have become integral to supporting the ecosystem and encouraging existing and new entrants into the industry.

What are the National MSME Awards?

The National MSME Awards are an initiative by the Ministry of Micro, Small & Medium Enterprises to motivate and encourage Indian entrepreneurs. The MSME National Awards aim to identify and reward enterprises actively contributing to the country’s economy through innovative product and process development and quality production. Awards are conferred on MSMEs in various categories. States/UTs, aspirational districts, and banks are also recognised and awarded a trophy and certificate for their institutional support to MSMEs.The award's objective is to propel MSMEs towards success and encourage institutions to offer the necessary support system to realise this initiative.

Did You Know? Odisha bagged the first prize under the States/UTs category at the National MSME Awards 2022.

MSME Awards Eligibility and Qualifying Criteria

You must furnish several eligibility criteria and documents to apply for MSME awards. These include general guidelines, industry-specific licenses, and valid registrations. Ensure you have all these documents before applying for the National MSME award for a smooth application process.

The general guidelines for MSME awards are as follows:

1. Eligible MSMEs must choose the relevant category and submit an online application.
2. You can apply for more than one award category, but you will not receive more than one.
3. MSMEs that have won an award in a particular category in the previous year are not eligible to apply to the same category in the following 4 years. However, there are no restrictions on applying to a higher category.

Conditions of Eligibility to Apply for the MSME Awards

Your application to the National MSME Awards will require you to furnish documents that prove your enterprise’s legitimacy and compliance. Here is a complete list of essential documents for the application:

1. Udyam registration
2. Environmental clearance certificate
3. Industrial License/Fire/Explosive etc
4. Social security norms
5. Additional certificates
6. Affirmation

1. Udyam Registration

A valid Udyam registration number is necessary and will be verified with the Udyam Registration Database and the data on the Unit for Identification & Financial Parameters. The application will be rejected if the applicant's MSME details do not match the Udyam registration and the MSME fails to furnish the correct document.

MSMEs without a Udyam registration can apply and have their registration verified on the msme@gov.in website.

2. Environmental Clearance Certificate

A valid certificate from the competent authority is essential to display an environmental clearance. Any exemption should be correlated with the relevant exemption certificate signed by the declaration during document upload.

3. Industrial License/Fire/Explosive

For a unit to be legitimate, it should display a valid certificate from the appropriate authority. If exempt, a signed declaration on the exemption certificate can be uploaded.

4. Social Security Norms

The norms such as ESI and PF information should be provided with challans. If exempt, a signed declaration of exemption can be uploaded. This information will be cross-verified with the number of employees filled by the applicant.

5. Additional Certificates 

You must provide an online declaration stating that there is no pending criminal case or tax liability against your enterprise. A certificate confirming that all bank accounts are standard as of the application date is also required.

6. Affirmation

You must sign an affirmation while submitting your online application confirming that there is no legal action against you. In addition, all the information provided is factually correct. You will also be required to return the award if your provided information is incorrect. You will face relevant action for false declarations made on the application.

Minimum Qualifying Criteria for MSME Awards

Each category under the National MSME Awards has dedicated marking patterns, including financial parameters, growth parameters, employment generation, technical parameters, etc. Enterprises should meet the minimum qualifying criteria based on these to qualify for the MSME Awards.

Here are the Minimum Qualifying Criteria:

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Category of Awards at the MSME National Awards

The MSME Awards recognise and reward MSMEs in three main categories offering 35 awards. The MSME National Award prize money ranges from ₹1 lakh to ₹3 lakhs.

1. Manufacturing Entrepreneurship
2. Service Entrepreneurship
3. Special Category of Enterprises

1. Manufacturing Entrepreneurship

In this category, 12 awards are given to micro, small, and medium-sized manufacturing enterprises. In addition to the overall category, there are also specialised awards for export-oriented and technologically efficient enterprises. They are broken down as follows:

2. Service Entrepreneurship

This category offers a total of 9 awards based on enterprise type:

3. Special Category of Enterprises

The special category of enterprises aims to promote enterprises of marginalised sections. This includes 14 awards.

In addition to these, there are also awards for institutional support for MSMEs under three categories. Each category includes a 1st, 2nd, and 3rd rank and is awarded a trophy and certificate.

The three categories that receive awards for supporting developing MSMEs are:

1. States/UTs
2. Aspirational districts
3. Banks (credit lending to MSMEs)

Taking these awards into account, the National MSME Award Scheme confers a total of 44 awards each year on MSMEs and institutions.

Application Process for National MSME Awards [2023]

MSMEs must submit applications for the MSME Awards online on the https://msme.gov.in website. On successful submission, the following process occurs:

• Online applications are received at the Directorate of MSME-DI level for submission before the State Level Selection Committee (SLSC) and further progress to the NLSC level.
• The SLSC will forward the qualifying applications with recommendations in the MSME format to the office of the Development Commissioner, Ministry of MSME.
• The applications will be further evaluated at the national level and marked as per the criteria. After that, they are submitted to the NLSC for selection of awardees, pending final approval by the Honourable Union Minister (MSME).

Applications for institutional awards for States/UTs and Aspirational Districts will need to be sent directly to the office of the Development Commissioner, Ministry of MSME. These applications will be scrutinised and considered by the Selection Committee for States/UTs.  Awards for bankers will be determined based on the analysis of credit data received from the Reserve Bank of India (RBI) as per the criteria set forth by the Selection Committee.

Benefits of Securing an MSME Award

The National MSME Awards are an invaluable motivator and badge of honour for MSMEs. Here are some benefits of winning the award:

• You are offered the privilege of displaying labels, pins, ties, and logos with the MSME symbol and the year of awards inscribed.
• You can use the symbol on company letterheads and advertisements with the award year.
• Awards and rewards are exempt from Income Tax under section 10(17) of the Income Tax Act, 1961.

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Conclusion

The National MSME Awards act as a stimulus to catapult the growth of India’s MSMEs and encourage the entry of new enterprises into the segment. Recognition for institutions is also crucial in furthering encouragement and enabling systematic support for MSMEs. Take advantage of the National MSME Award Scheme that puts your enterprise on the national map and paves the way for future success.

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