Bonanza for MSMEs: Uttarakhand unveils its first policy for MSMEs
Updated: Feb 10, 2015 03:15:50pm
Dehradun, Feb 10 (KNN) With an aim to end outward migration, encourage entrepreneurship and to effect an inclusive development in the state, specifically in the remote and flood hit hill areas, the Uttarakhand Government announced its first micro, small and medium enterprises policy.
The Policy includes various incentives like capital investment subsidy, interest subsidy and VAT reimbursement. Sudhir Nautiyal, additional director, department of MSME said that the policy shall remain in force until March 31, 2020, though the incentives can be availed of until March 31, 2025.
Under the policy the state has been divided into four major categories. The capital investment subsidy will be 40 per cent for the districts under category A, 35 per cent for category B, 30 per cent in category C areas and 15 per cent in category D with interest subsidy at 10 per cent, eight per cent and six per cent in categories A, B and C respectively and no interest subsidy in category D.
Full VAT reimbursement for the first five years after production commences, has been provided for MSMEs in category A areas, and 90 per cent in the next five years. While MSMEs in category B areas will get full VAT reimbursement for the first five years, it will be reduced to 75 per cent after that. There is no VAT incentive in categories C and D. No stamp duty to be levied in categories A, B and C with just 50 per cent in category D.
The Policy also announces setting up a land bank where land will be provided to MSMEs at concessional rates. Out of the 100 industrial estates to be developed by the State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (Sidcul), at least 25 per cent of the area will be reserved for MSMEs.
Under this policy formulated by the department of MSME and the Industries Association of Uttarakhand (IAU, an industrial chamber mainly comprising MSMEs), the government will provide support for creation of new infrastructure, skill development, cluster development schemes of the Central government, set up mini tool rooms and a land bank where land will be provided to MSMEs at concessional rates.
To monitor the implementation of the policy, an empowered committee headed by Shri Harsh Rawat, chief minister is being set up. (KNN/SS)
The Policy includes various incentives like capital investment subsidy, interest subsidy and VAT reimbursement. Sudhir Nautiyal, additional director, department of MSME said that the policy shall remain in force until March 31, 2020, though the incentives can be availed of until March 31, 2025.
Under the policy the state has been divided into four major categories. The capital investment subsidy will be 40 per cent for the districts under category A, 35 per cent for category B, 30 per cent in category C areas and 15 per cent in category D with interest subsidy at 10 per cent, eight per cent and six per cent in categories A, B and C respectively and no interest subsidy in category D.
Full VAT reimbursement for the first five years after production commences, has been provided for MSMEs in category A areas, and 90 per cent in the next five years. While MSMEs in category B areas will get full VAT reimbursement for the first five years, it will be reduced to 75 per cent after that. There is no VAT incentive in categories C and D. No stamp duty to be levied in categories A, B and C with just 50 per cent in category D.
The Policy also announces setting up a land bank where land will be provided to MSMEs at concessional rates. Out of the 100 industrial estates to be developed by the State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (Sidcul), at least 25 per cent of the area will be reserved for MSMEs.
Under this policy formulated by the department of MSME and the Industries Association of Uttarakhand (IAU, an industrial chamber mainly comprising MSMEs), the government will provide support for creation of new infrastructure, skill development, cluster development schemes of the Central government, set up mini tool rooms and a land bank where land will be provided to MSMEs at concessional rates.
To monitor the implementation of the policy, an empowered committee headed by Shri Harsh Rawat, chief minister is being set up. (KNN/SS)
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