UP offers easy loans, transparent rules to MSMEs; aims at 90 lakh new jobs in existing units

Hoping to revive its coronavirus-hit economy, the Uttar Pradesh government said Sunday it will generate 90 lakh new jobs in existing MSME units and encourage entrepreneurs to set up more small industries by offering loans on easy terms.

Ninety lakh people could get employment if one job is added to the workforce of each of the existing 90 lakh micro, small and medium enterprises (MSMEs) in the state, according to Chief Minister Yogi Adityanath.

Apart from this suggestion, Adityanath on Sunday asked officials to prepare a detailed action plan to motivate entrepreneurs to set up new MSME units.

Loan fairs will be organised in every district from May 12 to May 20, a government statement said, promising credit on generous terms.

It also said rules will be relaxed and made transparent for new MSME unit owners.

An official said banks have also been told to give loans to existing units so that they can expand their workforce.

In recent days, the UP government has said it is working on plans to generate about 20 lakh jobs for migrants returning home from other states due to the nationwide lockdown imposed after the coronavirus outbreak.

Earlier, the state Cabinet has also approved an ordinance putting on hold several labour laws for the next three years, hoping that this will help revive industry.

Adityanath said the coronavirus crisis has offered the state an opportunity.

We will accept this as a challenge and make the state the hub of the MSME sector, a press statement quoted him as saying.

He indicated that the plan is to provide employment at the local level at minimum capital.

"It is my commitment that this sector in Uttar Pradesh will achieve its glory as before, Adityanath said.

He said Uttar Pradesh has a very rich history of MSMEs, and the one district, one product plan is proof of this.

Adityanath said bankers will give loans on easy terms to every entrepreneur setting up a new unit.

Announcing the loan fairs, for which entrepreneurs can apply online, he said bankers have been given instructions on these at a meeting of the State Level Bankers Committee.

"Officials should motivate more entrepreneurs to set up units of micro, small and medium industries in the state. Prepare a detailed action plan as soon as possible for this, he said.

Despite the recession, this sector has contributed significantly to the growth of per capita income of the state in the last three years. We will further increase the per capita income through this, he said.