Important links for startup business ideas

Posted by on Oct 14, 2014 in Business, Government Schemes, Project Finance, Loans, Self-employment, Start-up business | 0 comments

Important Links for startup businesses

We have got numerous institutions in Government sector who assist in idea development to promotion of startup ideas.  The services constitute:

  1. Geography specific potential opportunities for startup businesses
  2. Sample Project Reports that provide one glance understanding of chosen startup project
  3. Data of capital equipment suppliers
  4. Steps to register a startup company
  5. Government Schemes with details of loans, incentives and other support to startup companies
  6. Research, Incubation and Marketing Support to startup businesses
  7. Market Data pertaining to several startup opportunities
  8. Access to global data for export of produce
Services from EPMWORLD

EPMWORLD Service diagram

There are many more services that industry promotion institutions provide to a startup business.

Startup founders, however, would ignore the effort of research and exploration and thus work with insufficient data.  Moreover, the prime focus of startup founders mostly targets loan procurement.  Banking institutions in India are not startup friendly.  The schemes like CGFT and its provisions are grossly under utilized owing to touch me not attitude of several bank authorities in accepting CGFT based loan applications.

Considering the above it is important that startup founders should explore various government provisions and then approach financial institutions with right documentation for loans or incentives.

The other option is to engage a consultant who would enlighten them on various related activities to setup a startup.

Here are some links that would help startup founder to explore data on some of the above aspects.

The above links are just indicative.  There are many more institutions and several more URLs to explore.

You may also like to explore various pages of this blog related to government schemes, project loan process, startup business ideas, idea evaluation, entrepreneur qualities, branding, online reputation and many more business aspects.  Should you need more information may please leave your comment herein.  I would try to answer your queries that falls within my scope.


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Food Processing Industry – Approvals

Posted by on Mar 23, 2011 in EPM World, Government Schemes, Self-employment, Start-up business | 0 comments

Following is the text of Government Policy on setting up Food Processing Industry in India.  Reference is available at


Policy Initiatives:

After liberalization several policy measures have been taken with regard to regulation and control, export and import, fiscal policy, exchange and interest rate control taxation, export promotion and incentives to high priority industries. Food processing and agro industries have been accorded high priority with a number of important relieves and incentives. Some of the important policy changes towards food processing industry are as follows
Regulation and Control:
  • Most of the processed food items have been exempted from the purview of licensing under the Industries, Development and regulation, Act, 1951, except items reserved for small-scale sector and alcoholic beverages.
  • As per extent policy Foreign Direct Investment up to 100% is permitted under the automatic route in the food infrastructure like Food Park, Cold Chain and warehousing.
  • Asfar as food retail is concerned the FDI policy does not permit FDI into retail sector except Single Brand Product Retailing. This policy is uniform for all retailing activity.
  • FDI policy for manufacture of items reserved for the Small Scale Industry sector is uniform for all items so reserved and a separate dispensation for items in the food-processing sector is not contemplated.
  • The policy for distillation of alcohol has been announced vide Press Note 4 (2006) according to which FDI upto 100% is permitted on the automatic route for distillation and brewing of alcohol subject to licensing by the appropriate authority.
  • No industrial license is required for almost all of the food and agro processing industries except for some items like beer, potable alcohol and wines, cane sugar, hydrogenated animal fats and oils etc. and items reserved for exclusive manufacture in the small scale sector. Items reserved for S.S.I. include pickles and chutneys, bread, confectionery, excluding chocolate, toffees and chewing-gum etc., rapeseed, mustard, sesame and groundnut oils (except solvent extracted), ground and processed spices other than spice oil and oleoresins, sweetened cashew nut products, tapioca sago and tapioca flour.
  • Use of foreign brand names is now freely permitted the government.
  • MRTP (Monopolies and Restrictive Trade Practices Act) rules and FERA (Foreign Exchange Regulation Act) regulations have been relaxed and given more freedom to encourage investment and expansion by large corporates.
  • Most of the items can be freely imported and exported except for items in the negative lists for imports and exports. Capital goods are also freely importable, including second hand ones in the food-processing sector.
Fiscal policy and taxation:
  • Custom duty rates have been substantially reduced on food processing plant and equipments, as well as on raw materials and intermediates, especially for export production.
  • Wide-ranging fiscal policy changes have been introduced progressively in food processing sector. Excise and Import duty rates have been reduced substantially. Many processed food items are totally exempt from excise duty.
  • Corporate taxes have been reduced and there is a shift towards market related interest rates. There are tax incentives for new manufacturing units for certain years, except for industries like beer, wine, aerated water using flavouring concentrates, confectionery, chocolates etc.
  • Indian currency, rupee, is now fully convertible on current account and convertibility on capital account with unified exchange rate mechanism is foreseen in coming years.
  • Repatriation of profits is freely permitted in many industries except for some, where there is an additional requirement of balancing the dividend payments through export earnings.
Export promotion:
  • Food processing industry is one of the growing areas identified for exports. Free Trade Zones (FTZ) and Export Processing Zones (EPZ) have been set up with all infrastructures. Also, setting up of 100% Export oriented units (EOU) is encouraged in other areas. They may import free of duty all types of goods, including capital foods.
  • Capital goods, including spares upto 20% of the CIF value of the Capital goods may be imported at a concessional rate of Customs duty subject to certain export obligations under the EPCG scheme, Export Promotion Capital Goods. Export linked duty free imports are also allowed.
  • Units in EPZ/FTZ and 100% Export oriented units can retain 50% of foreign exchange receipts in foreign currency accounts.
  • 50% of the production of EPZ/FTZ and 100% EOU units is saleable in domestic tariff area.


I have provided the above link in order to help several telephonic enquiries.  May pl. visit for comprehensive information.

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Project finance eligibility

Posted by on Feb 2, 2011 in Business, EPM World, Government Schemes, Project Finance, Loans | 1 comment

In line with my New Year resolution to help the prospective entrepreneurs, I have contributed herein my own thoughts on various important approaches towards realizing entrepreneur dream.  I have also provided links to government provisions regulating loans and subsidies and produced certain policy provisions of PMEGP & CGF.

I have drawn a table giving various heads of costs involved in the project finance (loan / investment) and general approach by banks in appraising loan eligibility.

project finance eligibility

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MSE, SSI – Who?

Posted by on Jan 28, 2011 in EPM World, Government Schemes, Self-employment | 1 comment

I have posted several of my writings besides compilation of policy provisions related to MSE, SSI sectors.  The one important thing in the context is the definition of MSE, SSI as per Government of India.  This definition applies in extending all the benefits to respective ventures.

mse ssi

Manufacturing sector
Micro enterprises does not exceed Rs. 25 lakh
Small enterprises More than Rs. 25 lakh but does not exceed Rs. 5 crore
Medium enterprises More than Rs. 5 crore but does not exceed Rs. 10 crore
Service sector
Micro enterprises does not exceed Rs. 10 lakh
Small enterprises More than Rs. 10 lakh but does not exceed Rs. 2 crore
Medium enterprises More than Rs. 2 crore but does not exceed Rs. 5 crore
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Business loans without collateral

Posted by on Jan 20, 2011 in EPM World, Government Schemes, Project Finance, Loans | 90 comments

Business loans can be availed even without any collateral security under CGSME and PMEGP. I have compiled a list of loans available, eligibility to avail the loans and other important details in that regard.

(click on the image for a better view)

Govt. of India support to MSE sector

Small Industry Loans without Collateral


Loans without collateral security
Compiled by Credit Guarantee Scheme for Micro and Small Enterprises (CGSME) Prime Minister Employment Generation Programme
Eligible borrowers New and existing Micro Entrepreneurs engaged in manufacturing or service activity excluding Retail Trade. Any individual above 18 years of age.
For existing units banks can sanction loans under CGTMSE towards term loan or renewal of working capital facilities. For more info pl. visit the website
Eligible businesses Any manufacturing or Service unit not in the negative list. Any industry not covered in the negative list.
Credit / Financial assistance INR 100 lakhs INR 25.00 lakhs for manufacturing sector.
Fund and non-fund based.Non fund based could be Letter of credit or BG. INR 10.00 lakhs for service sector.
Co-financing Borrower can avail joint financing by two institutions like SIDBI, NSIC, Any Member Lending Institution (Banks)subject to the credit sealing. NA
Loan tenure 7 years 3 to 7 years
Compiled by
Annual service fee 0.75% of sanctioned credit facilities. Consult Bank
Annual service fee exemption at the bank’s discretion. To women entrepreneurs, MSE loans up to 10.00 lakhs and eligible borrowers in North Eastern Region and J&K in excess of 0.25%. Consult Bank
Guarantee fee 1% of sanctioned credit facilities. One time payment. Consult Bank
Borrower’s contribution As suggested by the bank.Generally the debt:equity ratio would be at 3:1 i.e. borrower should be able to bring in 1/4 of loan amount. General category at 10%.
SC/ST/OBC/Minorities/Women/Ex-servicemen, Physically handicapped, NER, Hill and Border area at 5%.
Subsidy As applicable to respective industry from 5% to 50%. General category (i) 25% for Rural area and (ii) 15%% for Urban area.
SC/ST/OBC/Minorities/Women/Ex-servicemen, Physically handicapped, NER, Hill and Border area. (i) 35% for Rural area and (ii) 25% for Urban area.
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