• Punjab has a strong base of close to 1.6 lac MSME units truly reflecting the enterprising spirit of the State. In order to address a myriad of challenges being faced by the MSMEs in the State and to make it a highly vibrant and dynamic sector, the State would set up ‘MSME Punjab’, as part of the Punjab Industrial and Business Development Authority to focus on the development of MSMEs.
    • ‘MSME Punjab’ will address the following key functions pertaining to MSME sector in the State:
        • Enhance the competitiveness of MSMEs in the changed economic scenario.
        • Adequate flow of credit from financial institutions/banks.
        • Support for technology upgradation and modernization.
        • Modern testing facilities and quality certification.
        • Access to modern management practices.
        • Support for product development, design intervention and packaging.
        • Assistance for better access to domestic and export markets and Entrepreneurship development and skill upgradation through appropriate training facilities.
        • Cluster-wise measures to promote capacity-building and empowerment of the units and their collectives.
    • MSME Punjab will have dedicated divisions and requisite competencies to provide necessary assistance to MSME units in Access to Finance/Credit, Access to Technology, Access to Market, Access to Skills and other needs of the Sector. The organization will be assisted by professional agencies in delivering various services to its stakeholders.


    • In order to strengthen support to the industry particularly MSME sector at the District Level, the State would set up a strong and effective Single Window System at the District level.
    • The District level Single Window System will provide following services to MSME Units:
        • One stop clearances for all regulatory services
        • One stop clearances for all fiscal incentives
        • Facilitate access to Infrastructure
        • Facilitate access to Finance/ Credit
        • Facilitate access to Technology
        • Facilitate access to Mentoring
        • Facilitate other support measures to MSME sector
        • Facilitate support to Self Employment, Startup and Entrepreneurship Development.


    • The State would clearly identify and delineate various industry clusters based on their presence in various geographic locations. The same would be marked on GIS for their visibility and providing necessary linkages.
    • The State would particularly prioritise following clusters for development in phase 1:
        • Cycle and Cycle Parts
        • Automobiles and Auto components
        • Light Engineering
        • Machine Tools
        • Leather and Sports Goods
        • Petro-Chemicals
        • Secondary Steel
        • NRSE Equipments
        • Textile and Apparel
        • Agri and Food Processing
        • Electronics
        • IT/ITESLife
        • Sciences and Pharmaceuticals


    • The State will follow cluster approach for development of MSME Sector. The State will focus on optimal utilization of Central Government schemes for developing and upgrading various MSME clusters. Common facilities will be set up in partnership with SPV’s of respective clusters. Apart from the Schemes of Central Government for cluster development, the State would also formulate its own scheme for cluster development based on the felt needs of the State and gaps in the Central Scheme.


  • Setting up of Technology Centres
    • The State will set up one Technology Centre for each major industrial cluster. Technology Centre shall act as a hub of research and demonstration of latest tools and technological know-how, innovation & design services, prototyping, testing & calibration, incubation and training. These Technology Centres will partner with Punjab Technical University, Council for Science and Technology and other research and technical organizations at national and international level.
  • Setting up of Common Facility Centres
    • The State will aim to set up one Common Facility Centre (CFC) in each major industrial cluster. CFCs shall have testing labs, marketing centers and other supportive capacity as per the needs of the concerned cluster. The State and the Authority may provide land free of cost on lease basis for setting up of CFCs by SPVs under Ministry of MSME’s Cluster Development Programme or other schemes
  • Upgradation of QMCs and IDCs as Technology Centres, Common Facility Centres and Skill Centres
    • Revamping of the existing Quality Marking Centres (QMC’s) and IDCs as technology centres and common facility centres on Public Private Partnership model shall be undertaken for supporting the MSME sector. There are 13 existing QMCs and 20 IDCs in the state catering to different sectors like Engineering, Sports Goods, Leather, Paints, Textile, and Machine Tool etc.
  • Adoption of Central Schemes
    • The State would ensure adoption of technology upgradation and modernization schemes for MSMEs such as Credit Linked Capital Subsidy Scheme (CLCSS), Technology and Quality Upgradation Scheme (TEQUP), Lean Manufacturing, Quality Management Standards and Quality Technology Tools (QMS & QTT) and ZED (Zero Effect Zero Defect). The State would also make its own scheme to promote these concepts.
  • Water, Energy and Safety Audit
    • The State will incentivize audit of water, energy and safety to promote technology adoption by MSME units.


  • The State will provide developed sheds, flatted factories and plug and play infrastructure for MSMEs across the districts.


  • The State will facilitate MSME units in seeking credit from financial institutions by providing them required information and handholding in documentation.
  • The State shall facilitate raising funds through National Stock Exchange( NSE) dedicated platform for SME’s, called ‘Emerge’ where small companies can list and raise productive capital. The State will provide necessary incentives to make the SMEs available on the exchange platform.
  • The State would explore the possibility of setting up a government sponsored SME equity participation fund in partnership with SIDBI and National Stock Exchange of India Limited.
  • The main objective of the Fund will be to invest in the lPOs of the emerging high growth potential companies in the state, in both the manufacturing and services sector.
  • The investment manager for the fund will be a Government appointed agency. The appointed investment manager will be responsible for investment decisions of the fund.
  • NSE shall undertake third party due diligence of such companies and submit it to government fund manager, with a view to empowering investors to make better-informed investment decisions.
  • The listing of securities of the investee company on NSE-EMERGE will be a means of creating liquidity for that investment
  • Such companies will be enrolling for NSE’s Capital Markets Program, which shall include physical & virtual participation in training and awareness activities.


  • The State will provide Growth Accelerator services for MSMEs. It shall involve designing a bespoke intervention for each MSME sector targeting their challenges and encompass a blend of coaching, training and handholding. The State would partner with globally established agencies to appoint and train Growth managers to coach MSMEs to achieve higher growth. Sustainability of these growth managers as service providers shall be pursued.
  • Further, there are large number of GOI schemes which offer unit level incentives to specific industries e.g. Food processing, electronics, leather, textiles. The State will partner with suitable agencies to facilitate benefits to greater number of MSMEs in the state. It shall support MSMEs in preparing applications and obtaining approvals under respective schemes.


  • The State will facilitate setting up of common environment infrastructure such as CETPs in various MSME clusters. Apart from utilizing assistance available under various schemes, the State will facilitate setting up of common environment infrastructure on PPP. The State will provide land and other concessions for setting up of CETP and Private Partner will make the requisite investment and will recover from industry in the form of user charges.


  • The State will closely monitor implementation of RBI’s framework for identification, nursing and providing rehabilitation package to potentially viable sick units of the State. The State shall identify and prepare district wise list of sick units. The identified viable sick MSMEs shall be provided relief measures by the State for their rehabilitation and revival.


  • MSME facilitation council has been set up under the Micro, Small and Medium Enterprises Development (MSMED) Act 2006. It functions as a state-level council and MSMEs have to visit Chandigarh to seek the council’s remedial measure for the recovery of delayed payments by medium, large industries, Public Sector Undertakings, State and Central Government undertakings.
  • In order to make the functioning of the Council effective, the State will also set up MSME Facilitation Councils under the Chairmanship of respective Deputy Commissioners at Ludhiana, Jalandhar, Amritsar, SAS Nagar and Patiala by designating them as Director for providing effective services to MSE units at district level.