Drawing on his vast experience, Chief Minister Kamal Nath is creating an ecosystem of sustained socio-economic development by strengthening the MSME sector in Madhya Pradesh.

With effective policy changes and a vision for betterment of the state, Chief Minister has capped his first year in office by establishing a robust mise-en-scene to ensure the development of the Micro Small and Medium Enterprise (MSME) sector in the state.

Sweeping changes for the sector have been envisioned in the new MSME Development and Startup policies- 2019. The new development plans, besides offering a raft of incentives also provide for the ease of doing business in the state.

The new MSME policy provides for a grant for building construction, besides plant and machinery, and aims at boosting participation from women entrepreneurs and those belonging to the Scheduled Castes and Tribes.

While the state provides 40 percent assistance to any new entrepreneur, the grant has been raised by eight percent in case of women, scheduled castes and tribes, and 10 percent in case of women belonging to the scheduled castes and tribes.

Enterprises involved in export will now be provided a grant amounting to 52 percent, while an additional subsidy on electricity consumption has been made available to power-loom units of up to 20 horsepower.

Special packages have been formulated for power-loom, readymade garments and pharmaceutical industries.

The Startup policy has created a revolving seed support fund of Rs 10 crore and plans are afoot for creation of a venture funding capital of Rs 50 crore.

Provisions have been made for providing up to Rs 50 lakh advance support for projects under the Technology Business Incubation (TBI) plan approved by the central government.

Additional incentives have also been planned to promote startups established by women and those belonging to the SC/ST classes.

Officials say that startups will be reimbursed expenses incurred while participating in national and international programmes to promote their businesses. They affirm that ventures in the state will be provided all assistance at every stage.

Economists say the MSME sector is crucial to socio-economic progress and describe it as an 'engine of growth'. They explain that besides creating large scale employment opportunities and arresting regional disparities, the sector is vital for the distribution of wealth in a society.

Industry watchers say that the presence of Kamal Nath at the helm of the state government has enthused entrepreneurs who look forward to drawing on his vast experience in the sphere of commerce and industry.

Published On : 09-01-2020

Source : Daily Pioneer