Industrial area development scheme for MSMEs on cards in budget

New Delhi, Jan 10 (KNN) An industrial area development scheme focused on MSMEs is likely to be announced in the upcoming union budget which will have funds for both expansion, upgradation and development of new industrial areas, reported Mint.

Two people aware of the development told Mint that these industrial areas would act like industrial parks specifically for the small businesses.

For the establishment and upgradation of the industrial areas funding and financial support will be majorly provided by the central government.

States will also contribute and support the project along with a state implementing agency to set up the projects.

Additionally, to participate in financing these projects multilateral lenders such as the Asian Development Bank and International Financial Corporation of the World Bank would also be asked.

“The scheme would focus on both brownfield and greenfield projects and aims at getting more and more MSMEs under the ambit of cluster-based operations,” the person privy to the matter told Mint.

Federation of Indian Micro and Small & Medium Enterprises (FISME) through a memorandum submitted to Finance minister had demanded a scheme to support development of Industrial Areas.

The second official said the proposal is in line with efforts to make Indian MSMEs more competitive.

“Efforts would also be made to improve the market access of small businesses which are in these industrial areas. It would be done through a digital business match-making platform to showcase and integrate India MSMEs with the national and global supply chain," this official said.  (KNN Bureau)