Government amends MSME Fund Rules, 2016; prescribes criteria for release of funds for utilization by Govt.

Notification No. G.S.R. 29(E), Dated: 19-01-2022

The Government notified the Micro, Small and Medium Enterprises (Amendment) Rules, 2022 on 19th January 2022. The notification is made effective immediately. The notification amends the Micro, Small and Medium Enterprises Fund Rules, 2016, issued by the ministry on 28th October 2016. The amendment rules prescribe criteria for the release of money from Fund for MSME by inserting a new sub-rule (5) in rule no. 6 of the Micro, Small and Medium Enterprises Fund Rules, 2016.

The rules prescribed the following 4 criteria:

(a) The beneficiary of the fund shall be an MSME and shall file the memorandum under sub-section (1) of section 8 of the Act;

(b) The fund shall be mandatorily utilised for the project or scheme or activity for which it is approved by the Governing Council.

(c) The fund shall be disbursed as per the guidelines notified for that particular project or scheme or activity as referred to in sub-rule (2) of rule 6 of the Micro, Small and Medium Enterprises Fund Rules, 2016.

(d) Beneficiary of this fund cannot claim benefits from any other Scheme or programme of Central Government or any State Government or Union territory Administration for that project or scheme or activity.

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