New Delhi, Mar 9 (KNN) Union Minister for MSME, Kalraj Mishra has said that 2016-17 will be a development year for micro small and medium units with emphasis on job creation.  Towards this, his ministry has prepared a time bound action plan for utilising the allocation of Rs 3,000 crore to his ministry and implementation of major schemes which include PMEGP, SFRUTI, ASPIRE, etc.

Briefing the media about the roadmap and budget allocation of MSME Ministry here on Tuesday, the Minister said that under PMEGP a sum of Rs.1,139 crore will be utilized during 2016-17 to assist 55,000 projects with margin money. This will generate employment for more than 4, 25,000 persons, according to an official release.

Significantly, to promote entrepreneurship skills among youth, emphasis will be given to entrepreneurship education and training through Massive Open Online Courses (MOOC). Such training will be provided in 2,200 colleges, 300 schools, 500 government and 50 vocational training centres.  Aspiring entrepreneurs, particularly those from remote parts of the country, will be connected to mentors and credit markets, the Minister said.

As far as Khadi production is concerned, it is expected to reach Rs 1300 crore during this fiscal year, generating employment for more 19.50 lakh persons.  A sum of Rs 341 crore has been earmarked for Khadi and Village Industries Commission for this purpose.

Further, to promote rural artisans, focus will be given to development of 39 clusters with an approximate cost of Rs 60 crore benefitting more than 10,000 artisans.

In addition, to strengthen economic activities in rural pockets a sum of Rs.100 crore has been earmarked under the Scheme for Promotion of Innovation in Rural Industries and Entrepreneurship which will be utilized to set up of 45 LBIs and 25 TBIs. He also said that for both SFURTI and ASPIRE, a web based application and monitoring system will be designed and implemented. He said that, village industries production is expected to cross Rs.45,000 crore during 2016-17, creating employment for more than 163 lakh persons.

In addition, a sum of Rs. 43.56 crore has been allotted to take the Coir products to the level of 5.5 lakh metric tonnes and create employment for more than 7.25 lakh persons and exports of more than Rs.1,500 crore.

Mishra also said that Ni-MSME plans to come up with the MSME Clinic concept. The various aspects of the working of MSMEs will be brought under one roof for providing one stop facilities to the MSMEs. He also said that Rs.500 crore has been provided for promoting entrepreneurship among SC/ST to become job providers rather than job seekers. This will benefit at least 2.5 lakh entrepreneurs.

Also, it has been proposed to constitute a National Scheduled Caste and Scheduled Tribe Hub in his ministry in partnership with industry associations. This Hub will provide professional support to Scheduled Caste and Scheduled Tribe entrepreneurs to fulfil the obligations under the Central Government Procurement Policy, 2012, adopt global best practices and leverage the Stand Up India initiative.

Finally, in order to give a fillip to the MSME sector the government has proposed favourable tax incentives like increased turnover limit under Presumptive taxation scheme under Section 44AD of the Income Tax Act from existing Rs.1.00 crore to Rs. 2.00 crores, 100 per cent deduction of profits for 3 out of 5 years for Start Ups set up during April, 2016 to March, 2019 and waiving of Capital gains tax if investment in regulated / notified Fund of Funds. (KNN Bureau)