Small is beautiful, says Guj govt task force

Here's some good news for around 30 underdeveloped regions in the state. Apart from the micro small and medium enterprises (MSME), the new industrial policy of Gujarat, which is likely to be announced during the Vibrant Gujarat Global Investors' Summit in January next year, has a host of benefits for several underdeveloped regions of the state.

There are over 3 lakh MSMEs in the state having a fixed capital of over Rs 12,000 crore and providing direct employment to over 15 lakh people.

The Task Force constituted by state industries commissionerate recommended the following suggestions to make MSMEs competitive. The Task Force has also made some recommendations for the regions including Vav Deodar in Banaskantha, Kankrej, Fatehpura, Devgarh Baria in Dahod, Satlasana in Mehsana to name just a few.

Among salient features of the draft policy are full interest subsidy for micro and 5 per cent interest subsidy for SMEs, with a cap of Rs 25 lakh per annum for five years.

"In addition to interest subsidy, MSME in 30 undeveloped talukas identified by the state government will be provided land at concession rates in industrial estates. Unit applying within one year of loan disbursement, will be eligible," said a senior government official. There are provisions for quality certification for these enterprises which include assistance for maximum of three quality certifications, with a ceiling of Rs 6 lakh.

"Modifications to be introduced in existing scheme providing 50% grant with a limit of Rs. 1 crore for acquiring technology by a group of MSMEs for specific product/ process is also being considered. There is also a provision for assistance in acquiring patent," he said. According to him, assistance for contract research to be enhanced to 50% of cost with a ceiling of Rs. 50 lakh per project.

Also being planned is reimbursement of 50% cost of energy/ water audit with a maximum of Rs. 25,000/ unit. "In addition, assistance of 20% of cost of equipment subject to maximum of Rs. 10 lakh in a project," says a member of the Task Force.

The new policy also talks about raising assistance for cluster development to to be raised to 80% for training and 75% for other components