In its bid to strengthen the Micro, Small and Medium Enterprises (MSMEs) sector, Odisha government has extended financial incentives to 278 units during the current fiscal, official sources said.
With this, the total number of units getting incentives increased to 639 since April this year. The total amount of incentive has touched Rs 69.99 crore, they said on Saturday.
The State Level Empowered Committee meeting chaired by Chief Secretary A K Tripathy discussed the matter. Considering the new proposals, the chief secretary accorded in principle approval for Rs 2.94 crore of Capital Investment (CI) subsidy in favour of two small scale enterprises.
Tripathy directed officials to "follow a transparent and proactive practice in assessment and disbursal of different financial incentives to MSME units for attracting more and more young entrepreneurs into the sector".
"MSMEs are prime movers of rural economy and they add to inclusive growth in the rural community," Tripathy said. He directed officials to "facilitate the process by providing proactive planning, technical and handholding support to the sector."
The field level officers were asked to be in constant touch with local entrepreneurs and instil confidence in them, Tripathy said.
Secretary MS&ME Satyabrata Sahu said, "Mainly three types of direct financial incentives like capital investment subsidy (at two slabs of 25% and 33%), interest subvention @ of 5% per year for five years and VAT reimbursement for five years are provided to the MSMEs under different policies".
Besides, the government departments and PSUs have been directed to procure at least 20 per cent of their requirement from local MSMEs, Sahu said, adding that in the year 2019-20 a total amount of around Rs 34.52 crore was provided as one or other incentive to 361 units.
By November end of the current fiscal year Rs 25.47 crore was provided as incentives to 278 units. With this, a total number of 639 were incentivized with a total amount of Rs 69.99 crore from April, 2019 till end of November, 2020, he said.These units are spread over the sectors like fly ash brick making, paper egg trays, corrugated papers, plastic moulded products, milk and milk products, bakery, paper cup and plates, cotton ginning plant, shrimp processing, rice mills, cement products cashew kernels, rice bran oil, spices, pickles, noodles, PVC pipes and other miscellaneous industries.