The Tiruppur Export Association (TEA) on Friday welcomed the budget allocation of Rs 1,224 crore to the development of handlooms and textiles businesses in Tamil Nadu.

Deputy chief minister and finance minister of finance minister O Panneerselvam presented the budget in the assembly in on Friday.

Speaking on how this budget allocation could encourage and benefit thousands of budding entrepreneurs, TEA president Raja M Shanmugham said, “We welcome the expanding benefits available under Prime Minister’s Employment Generation Programme (PMEGP) and the Unemployed Youth Employment Generation Programme (UYEGP), the existing project size limit of Rs 10 lakh will be enhanced to Rs 15 lakh and eligible subsidy under the scheme will be enhanced from Rs 1.25 lakh to Rs 2.5 lakh. This will encourage thousands of budding entrepreneurs. The provision for this scheme has been enhanced to Rs 33 crore in the Budget Estimates 2020-21.”

The budget also allocated Rs 500crore fund allocation for environmental clearance under the Athikadavu-Avinashi irrigation scheme. Interest subvention under the Technology Upgradation Scheme and the Credit Guarantee Fund Trust scheme has been increased from 3% to 5%.

He appreciated enhancing of the maximum capital subsidy under the NEEDS scheme from Rs 30 lakh to Rs 50 lakh and the Rs 100 crore fund allocation for this scheme in the Budget Estimates 2020-21. Reduction in Stamp Duty for rental agreements under the new Tenancy Act to 0.25% from 1% and registration charges on such agreements to 0.25% from 1% subject to a maximum of Rs 5,000 was also seen as a welcome move.

Published On : 14-02-2020

Source : Times of India