Chennai, July 22 (KNN) Tamil Nadu MSMEs have hailed the state budget presented on Thursday stating that it is a pro-MSME Budget. An amount of Rs.348.22 crores has been allocated to the Micro, Small and Medium Enterprises Department in the Revised Budget Estimates 2016-2017.

In his Budget Speech, State Finance Minister O Panneerselvam said, “Recognizing MSMEs role as a major employment provider, this Government has identified the Micro, Small and Medium Enterprises (MSME) Sector as one of the Special Focus Areas of Development to provide special support for increasing investment, infrastructure development, technology up-gradation and skill development initiatives.”

He said that out of 10,073 Memoranda of Understanding signed during Global Investors’ Meet, 3,029 cases worth of Rs.2,599.93 crores investments have materialised so far.

“The Government will continue to extend 25 per cent capital subsidy up to Rs.30 lakh, besides extending interest subvention benefit of three per cent to MSMEs. It will continue to support promotion of private industrial clusters through trade associations to develop their infrastructure with State Government grant,” the state Finance Minister said.

For the year 2016-2017, Rs.12 crores and Rs.60 crores have been allocated for interest subvention and infrastructure support respectively.

The Entrepreneurship Development Institute (EDI) of Tamil Nadu has been training entrepreneurs under the ‘Unemployed Youth Employment Generation Programme’ (UYEGP) and the ‘Prime Minister’s Employment Generation Programme’ (PMEGP). A sum of Rs.15 crores is earmarked to fund the programme in flood affected areas of Chennai under UYEGP. During 2016-2017, a sum of Rs.30 crores is provided under UYEGP.

The ‘New Entrepreneurship-cum-Enterprise Development Scheme’ (NEEDS), a pioneering initiative of this Government, had been designed to promote entrepreneurship amongst first generation entrepreneurs.

This scheme will be extended to major educational institutions for executing ‘Start-up Action Plan’ activities at a cost of one crore rupees to create a vibrant start up eco-system in Tamil Nadu.

An amount of Rs.100 crores has been allocated for implementing this scheme in this Revised Budget 2016-2017.

An amount of Rs.348.22 crores has been allocated to the Micro, Small and Medium Enterprises Department in the Revised Budget Estimates 2016-2017.

Further, under the ‘Free Distribution of Dhoties and Sarees’ scheme, 167.81 lakh dhoties and 167.89 lakh sarees will be supplied during Pongal festival, 2017. The Rebate Subsidy Scheme is being continued in the State with the twin objectives of facilitating continuous assured employment to handloom weavers and promoting handloom cloth. An amount of Rs.487.45 crores and Rs.78.45 crores for Free Distribution of Dhoties and Sarees Scheme and Rebate Subsidy Scheme respectively have been included in this Revised Budget.

A sum of Rs.1,129.74 crores has been provided for the Handlooms and Textiles Sector and Rs.174.27 crores has been provided for Handicrafts and Khadi Sector in the Revised Budget.

Talking to KNN, the President of Tamilnadu  Small and Tiny Industries Association (TANSTIA), Muthusami C. said that the allotment for MSME sector this financial year Rs. 348.22 crores is a little lower as compared to previous year.

However, he said that overall it is very supportive budget for the MSME sector.

Even for the flood hit units, he said, additional Rs 15 crore has been allocated. (KNN Bureau)