Rural MSMEs in Karnataka to get 90 % subsidy for work sheds

The industries department in Karnataka has kick-started various programmes to give a thrust to the troubled tiny and villages industries. The department has allocated a sum of Rs 60,000 per unit — an increase of 50 per cent — to home-less SC/ST artisans for construction of living-cum-worksheds. This also includes increasing the subsidy component to 90 per cent (from the earlier 60 per cent) and free supplies of tool kits. The new scheme is with effect from 2009-10. Now, the artisan has to bring in only Rs 6,000 to avail of a subsidy of Rs 54,000, instead of Rs 16,000 to avail of a Rs 24,000 subsidy.

“We expect around 3,000 tribal artisans to benefit in the state through this special programme for tribal development,” Raj Kumar Khatri, commissioner for industrial development, said.

The government has also worked out a scheme to extend the time limit for availing the various unspent benefits extended under the earlier industrial policies. A scheme is under preparation for converting into loans the dues payable to the state government and its undertakings in the form of taxes, tariffs and fees. In addition, a detailed operational manual for implementing various incentives and concessions, for the guidance of both investors and departmental officers will be released shortly.

The pending subsidy amount of Rs 109.05 crore in respect of micro and small enterprises is also likely to be released during the current year.