Jaipur, June 9 (KNN) The new Rajasthan MSME policy proposes additional incentives of 15 per cent and 1 per cent interest subsidy for MSMEs having Zero defect, zero effect (ZED) certificate.

The policy received the green signal from the industries department and is currently waiting for a clearance from the finance division.

With the aim to achieve global competitiveness and development of MSMEs, specific industrial areas and clusters, skill development centres park development through PPP or private players have been included in the policy.

Today, many of the SMEs are able to produce only 50% of their capacity and the three biggest reasons for this are financial crunch, increase in production cost and lack of skilled labour.

Suresh Agarwal, President, Federation of Rajasthan Trade and Industry said, “For MSMEs, the government should develop cluster based industrial areas on PPP mode. Mining and agriculture raw material-based industries should be developed in the area where raw material is available. Also, both the Centre and the state should work in removing the problems faced MSMEs.”

As per media reports, the approved draft of the policy does not make any mention of giving cheaper power to the MSMEs. Industry representatives said that staying competitive would require such fiscal interventions.

Digvijay Dhabaria, President, PHDCCI Rajasthan, said, “The government should implement the free land scheme for MSMEs for 10 years in the new MSME policy. The original price of the land at the time of allotment should be collected after 10 years so that the entrepreneur can invest the money in machinery. He or she can pay the interest in all these years, barring first two years when the industrialist would need money to set up the units.”  (KNN Bureau)