Haryana Government has formulated a scheme for E-Commerce linkages of Micro, Small and Medium Enterprises (MSMEs) for online trading and brand building of their products manufactured by them.
While stating this in Chandigarh on Thursday, a spokesman of Industries and Commerce Department said that the scheme is primarily focused on increasing quality, industrial output and employment generation through incubation of e-Commerce in the state.
The spokesman said that inclusion to digital commerce would help SMEs to scale up their business at much lower levels of investment in fixed assets and human capital, thus reducing their cost structures. Online Market place would provide a cost effective impetus for growth, opening a window to new markets, increasing spread by shortening traditional supply chains, containing systemic inefficiencies, reducing costs, thereby leading to higher revenues and profit margins for SMEs. To achieve this objective, the SMEs would need to quickly make significant changes to their business models to suitably take advantage of the opportunities presented by e-commerce.
Detailing about salient features of the scheme, he said that it will create online catalog and realize advantages of digital marketing and other allied services provided by online market place namely Digital Marketing, Logistic and Fulfillment Service and Payment Collection. Once listed, products are viewed by millions of potential customers across India and abroad. The customers or end users will buy products online with secured payment infrastructure and it ensures systematic cash flow. After products are ready for dispatch, on-line market place ensures a quick delivery and notifies seller when order is received from customers.
While giving details of the financial assistance, he said that Department of Industries would arrange workshops and seminars for the MSME units which are engaged in the manufacture of the products which can be listed with the online marketplaces. The expenses incurred on such workshops or seminars would be met out of the funds earmarked for e-commerce activities subject to a maximum of Rs.20,000 per workshop of one full day which would include cost of arranging conference hall, honorarium to the guest speakers and refreshment to the participants. The Department would also avail the services of e-commerce companies.
He said that the expenses incurred on listing of on-line marketplace would be reimbursed to all the eligible manufacturing MSME units subject to a maximum of Rs 50,000 towards enrolling expenditure, sustenance of online business for the period of four months in continuation, within a given financial year. Reimbursement will include expenses towards managing and creation and uploading of product catalogue such as Hiring of Computer operator, Photography, content generation/product description and related allied services offered by “Online marketplaces”.
He said that the scheme would remain in operation for a period of five years. The assistance would be admissible on e-commerce linkages or listing with on-line marketing companies before August 14, 2020. Detailing about the other criteria of eligibility, he said that all the new MSME units coming into production after the notification of Enterprises Promotion Policy 2015 would be eligible except those MSME units falling in the negative list of Industries.
The industrial unit should be in production at the time of submission of application for reimbursement of expenses for e-commerce linkages and should have also filed Udhyog Aadhaar Memorandum (UAM) in the office of concerned District Industries Centre. Units undertaking expansion/diversification would also be eligible for the said incentives. Units are eligible for this benefit once in a year or at the time of production of diversified products. This facility shall be extended on each new item of product being manufactured by them and listing thereof with the e-commerce companies. He said that all the eligible MSME units are required to apply on the prescribed application form on E-biz portal of the department within a period of six month from the date of listing with the On-line Marketing Companies.