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09/06/2018 12:11pm

Hard-pressed MSME units of Koraput district of Odisha struggling for subsidy to save their units from closure

image Hard-pressed MSME units of Koraput district of Odisha struggling for subsidy to save their units from closure

Odisha, June 9 (KNN) Because of lack of subsidies and government support, at least 13 MSME industries that have been functioning in the tribal-dominated Koraput district of Odisha are on the verge of closure as they are unable to pay their loan.

The hard-pressed industries are running from pillar to post to get the subsidy to repay the loans.

Earlier in 2012, the Ministry of Micro, Small and Medium Enterprises had declared 35 per cent subsidy for each food processing units and accordingly, 12 rice mills and one ice cream factory were set up in different industrial areas of the district.

The bankers had also given loans to these units to promote industrial growth in the tribal areas. The industries started manufacturing their products in the last phase of 2014.

But later, the State Government declined to grant the subsidies citing that the Centre’s food processing subsidy scheme has been stopped.

However, the Government had assured to provide subsidy under its new State Food Processing scheme launched on April 15. Industries have to apply afresh for the subsidies.

Despite applying fresh applications for the subsidies, the subsidy amount as promised by the government is yet to be released.

For the last three years, they have been appealing at different forums, but in vain. About Rs 3 crore subsidy amount is to be distributed among the hard-pressed industries.

Plagued by issues of money, men and material, these industries, meanwhile, received closure notices from the banks concerned.

On Tuesday, they sought the intervention of Chief Minister Naveen Patnaik over the issue.

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