Uttarakhand sets up Cabinet sub-panel for MSME policy

The Uttarakhand government has set up a three-member cabinet sub-committee to give suggestions for the new Micro, Small and Medium Enterprises (MSME) policy, the draft of which is ready with a bonanza of incentives for developing new enterprises.

MSME Minister Harish Durgalpal, Urban Development Minister Pritam Panwar and Education Minister Mantri Prasad Naithani are the three ministers who have been entrusted with the task to give suggestions for the new MSME policy, said senior government officials, on the sidelines of a seminar on “Emerging cantours in the MSME sector in Uttarakhand”. The seminar was organised by the PHD Chambers of commerce and industry here on Wednesday.

With a thrust on skill development and creating new infrastructure like mini tool rooms and flatted factories, many potential sectors for the development of MSMEs have been identified, which include agro-based food processing and allied industry, handloom, hosiery, textile, pharma, Khadi and village industry, floriculture, tourism, herbal, medicinal plants and others.

The incentives are being offered in the new policy where areas have been have been bracketed in three major categories of A, B and C. The incentives like capital investment subsidy, interest subsidy, employment intensive subsidy and venture capital assistance are being offered in a big way.

A provision of interest subsidy will also be available. Besides, employment intensive subsidy of 15 per cent on labour wages subject to a maximum of Rs 5 lakh a year will be granted. Besides, the government will also offer venture capital assistance for all those MSMEs which adopt innovative technologies like nano.

The new policy also envisages power subsidy in categorised manner. The MSMEs will also be entitled for Value Added Tax or Goods & Services Tax in the first five years after the production. Similarly, transport subsidy will also be provided in graded manner.

In addition to this, financial assistance to the tune of Rs 50 lakh per unit would be provided for creation of basic infrastructure for setting up centres of excellence and incubators.

Provision of flatted factories to accommodate small and micro units would be made in existing as well as industrial estates. The government will also provide all support for the cluster development schemes of the central government and set up mini tool rooms.

The development of a land bank is another hallmark of the new policy. At least 25 per cent of the areas in the new industrial estates developed by the State Industrial Development Corporation of Uttarakhand (SIDCUL) will be reserved for MSMEs. The SIDCUL would also provide land to MSMEs at a concession rate.

An infrastructure development fund with an initial corpus of Rs 100 crore will also be created.

The policy also calls for providing awards to best MSMEs on the basis of their performances in growth and profit.