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Odisha cabinet approves new MSME policy to accelerate growth of industries

Wed, 23rd Nov 2016 (Source:web india 123)

Odisha Cabinet chaired by Chief Minister Naveen Patnaik today approved the Odisha MSME development policy to accelerate the growth of industries in the MSME sector.The policy will replace the existing Development policy 2009. Briefing newspersons after the cabinet meeting, Chief Secretary A P Padhi said the policy has a number of progressive measures to incentivize the growth of MSMEs and promote employment. Under the new policy the capital investment subsidy to new Micro and small enterprises has been enhanced from 10 per cent to 25 per cent of capital investment made in the plant and machinery subject to the upper limit of Rs one crore. Similarly the new micro and small enterprises owned by SC/ST physically handicapped, women and technical degree holders entrepreneurs has been enhanced from 12 per cent to 30 per cent of capital investment made in the plant and machinery subject to upper limit of Rs 1.25 crore

In addition to it an additional capital investment subsidy at the rate of 5 per cent of investment made in the plant and machinery would be available to support growth of MSM enterprises in industrially backward districts like Kalahandi, Nuapada, Bolangir, Subrnapur, Koraput, Malkangiri, Rayagada, Nawarangpur, Gajapati and Mayurbhanja. The policy also has provision to provide an additional capital subsidy at rate of 5 per cent of capital investment limiting to Rs 10 lakh over and above the eligible limit for setting up enterprises engaged in recycling of e-waste, hospital waste, construction and demolition waste.

The new policy provides for one time seed capital assistance equivalent to 10 per cent of term loan disbursed by financing banks/ institutions subject to a maximum of Rs 15 lakh to encourage first generation SC/. ST, differently abled and women entrepreneurs setting up of micro , small enterprises in industrially backward districts. Mr Padhi said there was a provision of one time grant of Rs 50,000 or two per cent of the project cost which ever is lower towards project report subsidy to new micro enterprises and one time reimbursement of 50 per cent of audit cost subject to maximum upper limit of Rs 25,000 towards disbursement of audit cost for water conservation to new MSMEs.

The policy also provides one time grant at the rate of 20 per cent of expenditure incurred for raising of capital through SME exchange limiting to Rs 10 lakh to small and medium enterprises after successful raising of equity.

In order to encourages killing of manpower, the policy provides for reimbursement of the cost of training of local manpower by MSMEs limited to Rs 3,000 per person for a maximum of ten persons in micro enterprises, 20 persons in small and medium enterprises. They will be eligible for an additional reimbursement of training cost of Rs 1,000 for women employees.

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