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13/07/2019 04:32pm

Gujarat Govt launches scheme for rehabilitation of viable sick MSMEs & large enterprises

image Gujarat Govt launches scheme for rehabilitation of viable sick MSMEs & large enterprises

Gandhinagar, July 13 (KNN) For the rehabilitation of viable Micro, Small and Medium Enterprises (MSMEs) and large enterprises in Gujarat, the State Government launched a scheme titled ‘Relief and concessions to the viable Sick Industrial Enterprises’.

Under the scheme the State Government provides relief and concessions by way of one time settlement of outstanding dues of State Government departments/offices with waiver of interest, penal interest and penalty; reimbursement of electricity duty for the period of 3 to 5 years at 100%, 75%, 50% respectively.

In addition, SGST incentive for additional fixed capital and SGST incentive for investment for generation of renewable energy for captive use, will be available under the scheme along with availment of unutilized Sales Tax VAT incentive under any earlier Incentive scheme & Kutch Package 2001 of the State Government and entitlement for availment of electricity supply through open access.

The benefits are also available to new promoter/management who took over sick enterprise, said the State Government notification.

Commenting on this scheme, CEC Member of Federation of Indian Micro and Small & Medium Enterprises (FISME), Prashant Patel said “This is a good initiative of State Government because some of the local industries are really facing financial crunch in their day to day activities and this is one of the initiative to support such industries.”

He explained that some of the industries like Diamond and Textiles are facing real challenges in terms of market situation and facing competition from other states and Countries like China and Indonesia.

The scheme will help only those MSMEs who have market potential, he stated.

On eligibility part, any MSME registered under MSME Act having the EM Part II/ Udyog Aadhar and large enterprises having SIA registration or any other license registration issued by competent authority are eligible to apply for the scheme.

The other parameters that make the MSMEs and large enterprises eligible for the scheme includes erosion in the net worth occurred due to accumulated cash losses to the amount of 50 per cent of its net worth during the previous accounting year; enterprise has been in commercial production for at least 2 years and large enterprises should be incorporated before 5 years.

The last date to apply under the scheme for relief and concessions to viable sick industrial enterprises is September 10, 2019. Eligible sick industrial enterprises can apply before this date to avail benefit under the scheme.

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