BHUBANESWAR: With an aim to help the pandemic-hit micro, small and medium enterprises (MSMEs) in the state, chief minister Naveen Patnaik on Tuesday approved a package of Rs 289.42 crore that includes a number of assistance measures.
The assistance measures include interest subvention, top-up subsidy, reimbursement of state GST and waiver of annual institutional maintenance charges, which would benefit around 2 lakh MSMEs, said an official statement.
“The package has been announced at benefiting a range of entrepreneurs, mostly women and weaker sections of society, in the MSME sector of the state to recover from the unexpected challenges by the Covid-19 pandemic. MSME sector generates huge employment opportunities,” said an official.
As part of the package, around 1.7 lakh MSMEs will receive benefit of interest subvention under the emergency credit line guarantee scheme (ECLGS). The state government will provide an interest subvention for the MSMEs with one year moratorium. A sum of Rs 108.29 crore is being released with a focus to cover 40 percent of eligible women-run MSMEs, said official sources.
Under the Prime Minister Employment Generation Programme (PMEGP), an amount of Rs 27 crore has been sanctioned to provide top-up subsidy to weaker sections. The amount will help in a big way to MSMEs run by weaker section like scheduled caste, scheduled tribe, other backward classes, minority community, women, physically-challenged and ex-servicemen facing the pandemic crisis.
To benefit the food processing units functioning under the Prime Minister Formalization of Micro Food Processing Enterprises (PMFME), Rs 10 crore has been sanctioned to provide as top up subsidy to around 1,000 MSMEs. PMFME, a centrally sponsored scheme, is being implemented with 60:40 basis in the state.
As per the recently amended industrial policy resolution, approved by the state cabinet, as many as 175 enterprises will be eligible for reimbursement of state GST for the period from July 1, 2017 to March 31, 2020. Under this proposal, a sum of Rs 38.30 crore will be disbursed.
Similarly, under the Covid-19 Assistance package (CAP) launched by the state panchayati raj and drinking water department, an assistance to the tune of Rs 100 crore will be made through women self-help groups to bail out the nano and micro enterprises in rural areas. Also, the state government has announced waiver of annual institutional maintenance charge payable by the MSMEs to Idco, which comes around an amount of Rs 5.83 crore in respect of 5000 MSMEs.
Satwik Swain, secretary general of Odisha Assembly of Small and Medium Enterprises (OASME) welcomed the assistance measures but also appealed the state government to give some relief on waiving electricity duty.