UP’s new Industrial Policy has many proposals to improve credit flow for MSME sector
Lucknow, July 12 (KNN) Highlighting the importance of MSME sector in Uttar Pradesh, the newly launched state industrial policy bats for improving flow of capital and credit for the sector through measures such as corpus fund to implement Vishwakarma Shram Samman Yojana; Mukhya Mantri Yuva Swarojgar Yojana to help self-entrepreneurship; creation of SME Venture Capital Fund etc .
Given the capacity challenges faced by MSMEs and the volatile market, smooth flow of capital and credit is a sine-qua-non for successful establishment of such units supplemented by government assistance for risk mitigation of the enterprises, highlights the Industrial Policy.
Towards this the policy intends to provide the following fiscal incentives to MSMEs.
In the policy, the UP Government has proposed to create a corpus fund in order to implement ‘Vishwakarma Shram Samman Yojana’ for providing assistance in terms of margin money subsidy and interest subsidy to artisans and entrepreneurs of local traditional industries of the state through bankable projects.
The scheme will comprise of two components. In the first component, traditional artisan such as carpenters, cobblers, tailors, basket weavers, barbers, goldsmiths, ironsmiths, potters, sweet makers etc. will be provided margin money subsidy and the project will be dovetailed with Pradhan Mantri Mudra Yojna.
In the second component, entrepreneurs of traditional industries will be assisted by providing margin money subsidy on a lower scale together with interest subsidy and the beneficiaries who belong to SC, ST and women categories will have their projects dovetailed with Stand-up India Yojna.
Mukhya Mantri Yuva Swarojgar Yojana will be launched to encourage the educated unemployed youth of the state to set up enterprises including both industries and service enterprises.
Under the scheme Margin money subsidy and interest subsidy will be provided to beneficiaries and the project will be dovetailed with Pradhan Mantri Mudra Yojana or Stand-up Yojna depending on the scale of the project and the categories of the beneficiary.
Further, the Government of UP with the assistance from financial institutions will create an SME Venture Capital Fund for promoting Start-ups and emerging Small & Medium Enterprises (SMEs), said the Policy document.
The existing interest subsidy scheme for Small & Medium industries in Poorvanchal, Madhyanchal and Bundelkhand areas of the State will be rationalised to make the interest subsidy available to beneficiaries at par with similar schemes in other departments of the State government.
Existing micro & small industries carrying out expansion or diversification subject to criteria laid down by the state government will be provided interest subsidy.
The annual service fees payable to Banks and financial institutions for availing collateral free loan up to Rs.2 crore under Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) will be reimbursed by the Government of UP.
The industrial policy mentions that ensuring all round industrial growth MSMEs constitute an important segment of the economy of Uttar Pradesh in terms of employment generation and as a source of foreign exchange earnings through exports.
With the highest number of MSME units in the country, Uttar Pradesh today is a leading exporter of MSME products in categories like handicrafts, engineering goods, carpets, readymade garments, leather products etc.
The policy said it intends to provide these facilities and incentives for the holistic development of MSMEs in the state. (KNN Bureau)
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