New MSME policy hits roadblock in Uttarakhand

The new small and medium enterprise (MSME) policy in Uttarakhand has hit a roadblock, with the state government dilly-dallying on issuing a notification in this regard.

In November last year, the state Cabinet had put a seal of approval on the draft of the new MSME policy, complete with bonanza of incentives for developing new enterprises, which include 30 to 40 per cent capital subsidy.

"The draft of the new policy had been sent to the Chief Minister (Harish Rawat) for the final approval," said a top government official, after certain amendments were carried out by a committee headed by Chief Secretary N Ravishanker earlier this month.

However, industrialists are unable to understand as to why the draft which had been approved by the state Cabinet earlier was again sent to the chief minister. "When the state Cabinet takes some policy decision, it should be implemented. But I don't know why it has been sent again to the CM," said Pankaj Gupta, president, Industries Association of Uttarakhand (IAU), a leading promotional body of the MSMEs in the state.

In the new policy which was approved by the Cabinet, the incentives are being offered where areas have been have been bracketed in two major categories of A and B in the hills. Backward districts such as Pithoragarh, Uttarakashi, Chamoli, Champawat, Rudraprayag and Bageshwar have been kept in category A, where the capital subsidy will be 40 per cent.

In the category B, districts such as Tehri, Pauri and Almora have been included where the capital subsidy will be 30 per cent. The interest subsidy in the category A will be 12 per cent while 10 per cent for category B.