Rs 100 cr for MSME Innovation Fund; Rs 1000 cr more for skill development
Updated: Feb 17, 2014 02:42:36pm
New Delhi, Feb 18 (KNN) In its interim budget for 2014-15, the government has proposed to provide Rs 100 crore for creating 'India Inclusive Innovation Fund' to promote innovation at the grass root level and another Rs 1000 crore for the skill development.
Presenting the vote on account budget in the Lok Sabha, Finance Minister P Chidambaram said, “Ministry of MSME will create the ‘India Inclusive Innovation Fund’ to promote grass root innovations with social returns to support enterprises in the MSME sector. I propose to make an initial contribution of Rs 100 crore to the corpus of the Fund.”
Chidambaram also said that the government would contribute another Rs 1000 crore for the National Skill Certification and Monetary Reward Scheme.
The scheme was launched in August 2013 and under it 24 sector skill councils, 440 training partners and 17 assessment agencies have joined the programme.
As many as, 1.68 lakh youth have enrolled and 77,710 have completed the training.
While the Finance Minister did not come out with the big bang schemes, as it was only an interim budget, he announced sharp reduction in excise duty for small cars, motorcycles, scooters and commercial vehicles from 12 per cent to 8 per cent. Likewise, the duty on SUVs has been slashed to 24 per cent from 30 per cent.
This rate of duty will remain in force till June 30th by which time a new government would be in office. Besides, to encourage domestic productions of mobile handsets, the excise duty has been restructured along with certain other items of interest to the MSMEs. These include - soaps and oleo chemicals, non-edible grade industrial oils and its fractions, fatty acids and fatty alcohols to 7.5 percent.
A full-fledged budget would be presented by the new government sometime in July.
Finance Minister also proposed to set up a Research Funding Organisation that will fund research projects selected through a competitive process. Contributions to that organisation will be eligible for tax benefits. This will require legislative changes which can be introduced at the time of the regular Budget.
Industry bodies Federation of Indian Micro & Small and Medium Enterprises (FISME) and Karnataka Small Scale Industries Association (KASSIA) have welcomed the budget.
The National Innovation Council (NInC) and the Ministry of MSME in January announced the creation of the India Inclusive Innovation Fund.The fund is an autonomous Rs 500-crore fund, with the Union Government contributing 20 per cent. The balance will come from public sector banks, financial institutions, insurance companies, multilateral/bilateral development agencies, Indian and global corporates, said a presentation by NInC. (KNN//PC/SD)
Presenting the vote on account budget in the Lok Sabha, Finance Minister P Chidambaram said, “Ministry of MSME will create the ‘India Inclusive Innovation Fund’ to promote grass root innovations with social returns to support enterprises in the MSME sector. I propose to make an initial contribution of Rs 100 crore to the corpus of the Fund.”
Chidambaram also said that the government would contribute another Rs 1000 crore for the National Skill Certification and Monetary Reward Scheme.
The scheme was launched in August 2013 and under it 24 sector skill councils, 440 training partners and 17 assessment agencies have joined the programme.
As many as, 1.68 lakh youth have enrolled and 77,710 have completed the training.
While the Finance Minister did not come out with the big bang schemes, as it was only an interim budget, he announced sharp reduction in excise duty for small cars, motorcycles, scooters and commercial vehicles from 12 per cent to 8 per cent. Likewise, the duty on SUVs has been slashed to 24 per cent from 30 per cent.
This rate of duty will remain in force till June 30th by which time a new government would be in office. Besides, to encourage domestic productions of mobile handsets, the excise duty has been restructured along with certain other items of interest to the MSMEs. These include - soaps and oleo chemicals, non-edible grade industrial oils and its fractions, fatty acids and fatty alcohols to 7.5 percent.
A full-fledged budget would be presented by the new government sometime in July.
Finance Minister also proposed to set up a Research Funding Organisation that will fund research projects selected through a competitive process. Contributions to that organisation will be eligible for tax benefits. This will require legislative changes which can be introduced at the time of the regular Budget.
Industry bodies Federation of Indian Micro & Small and Medium Enterprises (FISME) and Karnataka Small Scale Industries Association (KASSIA) have welcomed the budget.
The National Innovation Council (NInC) and the Ministry of MSME in January announced the creation of the India Inclusive Innovation Fund.The fund is an autonomous Rs 500-crore fund, with the Union Government contributing 20 per cent. The balance will come from public sector banks, financial institutions, insurance companies, multilateral/bilateral development agencies, Indian and global corporates, said a presentation by NInC. (KNN//PC/SD)
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