Gujarat launches innovation fund

In a move to support innovation among small and medium enterprises (SMEs) in Gujarat, the state government has launched a fund with a corpus of around Rs60 crore.

Gujarat Chief Minister Narendra Modi, who was in Chennai to participate in an interactive session with the local business community, said, “One of the main focus areas for the government is SMEs. We don’t have raw materials in the state, but we have still attracted large investments in the manufacturing sector. This was because of SMEs and they are our assets.”

He noted that in 2007-08 and 2008-09, of the total number of jobs created in the state, 78 per cent were by SMEs and the agriculture sector, and they were the state government’s first priority, said Modi.

The state administration has said around 300,000 jobs are expected to be created in the state in the next three years by SMEs.

“In order to make our SMEs competitive and improve quality, the state government has launched an innovation fund. This can be used for manufacturing and marketing, apart from innovation,” said Modi.

M Sahu, principal secretary — industries and mines department, Government of Gujarat added, “It’s a Rs60 crore fund, which was created to boost innovation among SMEs.”

The chief minister and the principal secretary were in Chennai to promote ‘Vibrant Gujarat 2011’ — the fifth edition of the bi-annual global investors’ meet at Ahmedabad, which will be organised by the Confederation of Industry in association with the Gujarat government. The meet will start on January 12, 2011.

The two said that in 2009, despite the global slowdown, 3,346 MoUs entailing investments worth $240 billion were signed at the 2009 Summit.

Sahu noted that of the total number of MoUs, 1,800 are with SMEs. He added that 70 per cent are nearing completion and in the next three years 90 per cent of the MoUs will be implemented.

He noted that the national average percentage of execution of MoUs is 20 per cent, whereas in Gujarat it is currently 70 per cent in the SME segment.

“Investment-wise, it might be small, but when it comes to job creation it is huge,” said Sahu. According to the state government’s estimate, three lakh jobs will be created through these MoUs.

Sahu added that at Vibrant Gujarat 2011 a special convention will be held to focus only on SMEs, and around 5,000 delegates are expected.