Ahmedabad, Feb 23 (KNN) The Gujarat MSMEs are happy with the special package of Rs 1000 crore announced for them in the state budget.

Talking to KNN, Dimple Patel, Hon’ble Secretary, Vatva Industries Association, hailed the budget and said the special package announced for the MSME sector will give a boost to industry.

The government has focused on the MSME, agriculture and rural sector in the budget, he added.

Meanwhile, Rajeev Raval, Past President, Gujarat State Plastic Manufacturers Association’s said, “the budget is good for the MSME sector and start-ups. Small and Medium Scale Industries are main employment generating sectors.

They have not given much concession for the agriculture products. Because of the Narmada Project, water is available at small places for agriculture. Farmers are not in a better condition than before so they need some more agri-equipments. Government should take care of this and support the local plastic industry which has a huge role in manufacturing agro-equipments,” he added.

Ahead of the state assembly elections in December this year, Gujarat deputy chief minister Nitin Patel, who also holds the finance portfolio, announced several sops for the MSME, Agriculture and Rural Sector.

The budget size stood at Rs 1.72 lakh crore for FY 2017-18, up by Rs 20,327 crore as against last year, along with surplus estimates of Rs 521.3 crore.

Terming the budget "complementary to the union budget", Patel offered a Rs 1000 crore special package for micro-small and medium enterprises (MSMEs).

The special package offers enhanced assistance to MSMEs for market development, technology acquisition, raising finance through SME exchanges, additional assistance for power connections and capital and rental charges. Rs 17 crore was allocated for start-ups.

Rs 570 crore was allocated under Textile Policy and for traditional handicrafts, Rs 10 crore has been provided for supporting and encouraging unique crafts such as Kutchi, Patola and Bandhani works, wooden carved furniture and others.

The state budget also offers a special package with an outlay of Rs 10 crore for communities like barbers, carpenters, cobblers and potters among others, which provide specialised services. The aimed is at providing skill upgradation facilities, toolkits and modern amenities to these communities at their workplace.

Rs 200 crore for allocated for industrial incentive scheme, defence aerospace policy, plastic industry scheme.

The state government announced tax cut in tractors used for agricultural purposes to power subsidies.

Patel subsidised power to farmers with an allocation of Rs 4,011 crore apart from providing assistance to install solar pump sets, the state government will also provide farm loans at the one per cent interest rates.

Agricultural tractors, however, attracted a downward revision in lump sum tax at three per cent, from 3.5 per cent.