MSME policy 2009 gets okay

The Orissa cabinet chaired by chief minister Naveen Patnaik today approved the draft micro, small and medium enterprises (MSME) development policy, 2009.The policy lays thrust on the development of infrastructure to meet the requirement of MSMEs and facilitation of credit to this sector.

The new policy is also expected to smoothen the sourcing of raw-materials in an efficient and cost effective manner, support measures for marketing and concerted efforts for promotion of exports. The maximisation of growth of the MSMEs in the state and creation of large scale employment opportunities utilising and upscaling the local entrepreneurial talent are some of the focus areas of the policy, sources said.

While the value addition of resources, augmentation of revenue and balanced regional development are the main objectives of the policy, promotion of the entrepreneurial spirit among the educated youths of the state has been given emphasis in it. Besides, it is expected to arrest incipient sickness and revive and rehabilitate viable sick MSME units, sources said.

The draft policy approved today prescribes for reservation of 20 percent of the land in all industrial estates, industrial parks and industrial corridors for MSMEs and creation of land bank for them. Similarly, 10 percent of the land, limited to 200 acres, allotted to large and mega industries will be earmarked for setting up of ancillary and downstream industries.

New exclusive industrial parks will be set up in all major industrial hubs. Sources said, the policy has provisions for the capital investment subsidy at the rate of 10 percent of the Fixed Capital Investment (FCI) subject to an upper limit of Rs 8 lakhs to new MSME units.