Enforcement of MP MSME Development Policy and Incentive Scheme from April 1: Pathak

4/3/2018

Several facilities to be given to set up enterprises in state

Chronicle Reporter, Bhopal Madhya Pradesh MSME Development Policy 2017 was released in the MSME meet held last year to meet the target of integrated industrial development in state. This policy is being implemented in state from 1st April, 2018. Mentioning priorities of the new fiscal year, Minister of State (Independent Charge) for Micro, Small and Medium Enterprises Sanjay-Satyendra Pathak gave this information. He told that a budget of Rs 852 crore 42 lakh 65 thousand has been approved for financial year 2018-19. MoS Pathak told that “Madhya Pradesh MSME Incentive Scheme 2017” will also come into force along with Development Policy 2017 on the same day. Assistance/facility will be made available under Micro, Small and Medium Enterprises Policy under the Incentive Scheme. Facilities to be given in Development Policy 2017: A combination of various grants will be given to the MSMEs in five annual instalments in the form of 40 percent industry development grant of the investment. If the investor purchases private land with the aim of establishing a medium category manufacturing unit or acquires undeveloped government land from the government, then such units will get maximum Rs 25 lakhs which is 50 percent of the financial assistance given for expenses incurred in infrastructure development for the arrangement of water, road and electricity in the unit premises. Industrial units will be given 50 percent capital grant (maximum Rs 25 lakhs) for investment in setting up waste management systems which includes ETP, STP etc. Assistance of 20 percent (maximum Rs 2 crores) spent on establishment/development of private industrial areas and multi-storeyed industrial premises will be provided.The area of the developed industrial area should be minimum 5 acres or carpet area of multi-storeyed industrial premises must be at least 10,000 square feet. Five industrial units should be functional in this area mandatorily. Employees of new industrial units who are depositing CPF of more than 10 regular employees (maximum Rs 1000 per employee) will be provided cent percent amount of the CPF for a period of five years or maximum Rs 5 lakhs (whichever is less). The department will reimburse 50 percent (maximum Rs 3 lakhs) of the expense for obtaining the quality certificate. On the expenses incurred on Products/Patents of production processes/IPR developed on the basis of research under National/International Rule/Law, the department will make cent percent reimbursement (maximum Rs 5 lakhs) Assistance of 25 percent of the upgradation cost or cent percent of the amount remaining after adjustment of financial assistance obtained from the Government of India, out of the expenses made for the upgradation of powerloom under Government’s IN-SITU Upgradation Scheme will be provided to maximum 8 powerlooms per unit. MoS Pathak told that the MSME Department constituted independently to promote integrated development of Micro, Small and Medium Enterprises is completing 2 years of formation on April 5, 2018. Discussing the department’s achievements in two years Pathak said that the department has framed policies to capacitate and develop MSMEs. Rules have been made for the implementation of the policies.

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