New MSME policy may raise capex subsidy limit

The Orissa government is mulling to bring in some changes in the state MSME (Micro, Small & Medium Enterprises) Development Policy of 2009 according to which the upper limit of capital investment subsidy for the units may be raised from Rs 8 lakh to Rs 20 lakh.

In the original MSME Development policy, the MSME units were entitled to capital investment subsidy of 10 per cent of fixed capital investment subject to an upper limit of Rs 8 lakh.

Similarly, the cap on capital investment subsidy for units promoted by SC, ST, physically challenged, women entrepreneurs and entrepreneurs with technical degrees and diplomas has been proposed to be raised from Rs 10 lakh to Rs 25 lakh, said a senior official of state industries department.

Besides, a special market development scheme will be incorporated in the revised policy to offer financial support to the MSME units participating in national and international trade fairs.

According to the original MSME Development Policy, the state government will ensure that requirement of goods and services by government departments and agencies under its control are procured from the MSME units located within the state.

The list of goods and services reserved for exclusive purchase from the MSME units located within the state will be prepared from time to time keeping in view the production capacity of the local units and requirement of state government departments and agencies under its control.

This list would consist of items for which sufficient production capacity exists within the state to meet the entire demand of the government sector.

The goods and services to be reserved for procurement from MSMEs via rate contract system shall be prepared by the Director (Export Promotion & Marketing) taking into account the quantity and quality of goods being manufactured and services being provided by the local MSME units.