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MSME & START-UP BULLETIN, VOLUME 1, ISSUE 1, AUGUST 2022

Is different with various rating agencies and (vi) Micro &small enterprises have to pay their
their acceptability also varies with the users, the contribution towards the rating fee along with
rating fee to be charged by the rating agencies their application. The payment can be made by
Is varying. way of pay order / demand draft drawn in favour
of the Rating Agency selected by MSE.
(v) The rating agencies are free to decide their rating
fee which Is being intimated to NSIC at the (vii) The fee to be paid to the rating agencies shall
time of empanelment, so that fee is known in be based on the turnover of the MSEs which has
advance fo the applicant unit as well as NSIC. been categorized into three slabs. The slabs of
The rating fees may, however, be reviewed by the turnover and the share of Ministry of MSME
rating agencies from time to time due to the towards the fee charged by the Rating Agency
competition and the number / size of clientele. have been indicated in the table given below:

Turnover Fee to be reimbursed by Ministry of MSME

Up to `50 lacs 75% of the fee charged by the Rating Agency subject to a ceiling of `25,000/-

Above `50 lacs to `200 75% of the fee charged by the Rating Agency subject to a ceiling of `30,000/-
lacs

Above `200 lacs 75% of the fee charged by the Rating Agency subject to a ceiling of `40,000/-

The balance amount towards the fee shall be borne combination of credit and performance factors,
by the MSEs. which include operational, fi nancial, business
and management aspects. In order to support
(vill) The portion of the fee to be subsidized by the the vendor development, if is proposed that the
Ministry shall be released through NSIC after rating may also cover the ‘capacity assessment’
submission of the Rating Report to NSIC by the of the applicant unit as a part of its Performance
Rating Agencies. Rating under the scheme.

Way Forward (iii) The rating serves as a trusted third-party opinion
(i) The critical importance of the PCR Scheme Is on MSE’s capabilities and creditworthiness. It
also emphasized as, by the stipulations made by enables MSEs to secure credit from banks and
the Government, Ministries, Department and fi nancial institutions with comparative ease and
Public Sector Undertakings are mandated to favourable interest rates. Rating also facilitates
procure minimum of 20% of their annual value vendors/buyers in judging the capabilities and
of goods or services from MSEs. It has also been capacity of the MSEs for taking a decision on
indicated by the policy to develop appropriate fi nalization of purchase contract with them and
vendors so as to meet the target of fulfi lling the thus helps the overall growth of the MSE sector.
20% requirements of bulk buyers, which can The contribution of MSE sector to the economy
be attained leveraging PCR Scheme as If would will improve by way of higher production,
serve as a tool to help in vendor development. exports and other global competitive advantages.
(ii) Presently, the rating under the Scheme covers a

The Institute of Cost Accountants of India 51