Industry body proposes draft for new MSME policy for Uttarakhand
Updated: Oct 17, 2013 02:09:16pm
Dehradun, Oct 17 (KNN) Offering suggestions for incorporation into new MSME policies for the state, the Industry Association of Uttarakhand (IAU) has proposed that the government should introduce a 'Scheme for Assistance to Micro, Small and Medium Enterprises' which should come into force from the date of issue of necessary notification and be operational for a period of five years.
On account of the recent floods which caused immense damage in the state, the Uttarakhand government wanted to introduce a new MSME policy under which it will offer various incentives to provide a boost to MSMEs in the state which are still grappling with the loss to their livelihood.
In this context, the Department of MSME had asked for suggestions from different business chambers in the state.
According to the draft submitted by IAU, the government should encourage private sector participation in infrastructure projects under Public Private Partnership (PPP) especially in industrial infrastructure, power, roads and bridges, health, tourism, education sectors, simplification of rules and procedures, self-certification and use of Information and Communication Technology (ICT) for hassle-free, timely delivery of services and further liberalisation of Estate Management Procedures.
Amongst other key strategies proposed by the chamber are strengthening of institutional support mechanism through a grievance redresser mechanism for industry and joint consultative framework; promoting quality competitiveness, R&D and technology up- gradation, laying special focus on cluster development, provision of flatted factories and incentivizing MSMEs; efficient use of renewable energy and adoption of labour-friendly policies.
Further, according to the proposal, units should be given capital subsidy of 15 per cent subject to a maximum of Rs 30 lakh, while micro enterprises should be eligible for 25 per cent. As far as interest subsidy is concerned, 7 per cent should be given for micro enterprises and 5 per cent for small and medium enterprises.
In addition, 1 per cent additional interest subsidy should be given to youth below 35 years of age, and woman entrepreneurs should be accorded priority, it suggested.
Further, IAU has demanded that maximum amount of interest subsidy should be Rs 25 lakhs per annum, for a period of five years.
The amount of interest subsidy should be paid to the Bank/FI with intimation to the unit, the draft said. In case the unit becomes defaulter in repayment to Bank/FI, such default period should be deducted from the period of five years, it added.
Some of the other demands in the proposal are – 100 per cent reimbursement of stamp duty; 25 per cent rebate in land cost limited to Rs 10 lakh in Industrial Estates/ Industrial Parks; 50 per cent land conversion charges for industrial use limited to Rs 10 lakhs; PPP mode to streamline supply of essential raw materials to MSEs; 50 per cent reservation of local resources for MSEs, reimbursement of VAT/CST or State Goods and Services Tax (SGST) and reduction of CST to ½ per cent for state manufacturing MSME Enterprises
Uttarakhand which has nearly 40,000 small enterprises had an annual average real growth rate of 12.4 per cent during the period 2005-06 to 2012-13.
The services sector contributes around 53 per cent in GSDP followed by the industry and agriculture sectors at around 36 per cent and 11 per cent respectively in 2012-13.
President of IAU, Pankaj Gupta, further proposed that the government should give technical support assistance for technology and efficiency upgradation and modernization; provide all support for the proposal for the setting up of Mini Tool Rooms to be sanctioned under National Manufacturing Competitiveness Programme (NMCP) ; support for the implementation of schemes under NMCP, financial as well as technical support for up-gradation, skill development, training etc.
The industry has also asked for government support to Cluster Development Schemes and establishment of common facility centres by Industrial clusters/ Associations at the rate of 25 per cent of the project cost.
“MSME s should be gradually extended the benefit of self-certification in respect of their compliance with statutory requirements,” suggested the draft.
Also, for the encouragement of existing and new entrepreneurs, awards in terms of cash and appreciation letter should be given to the units.
In June 2013, a multi-day cloudburst caused devastating floods and landslides in the state which hit 19,500 small units and caused an estimated loss of Rs 531 crore to them washing away their infrastructure completely.
“Industry-cum-service centres should be set up at Dehradun, Tehri, Srinagar, Uttarkashi, Nainital, Almora, Pithoragarh, Rudraprayag on areas ranging between 1 acre and 10 acres where as necessary support should be extended for establishment of new Industrial Estate,” IAU proposed.
Further, provision should be given for flatted factories and multi storied flatted factories to accommodate MSMEs should be made in the existing as well as new industrial estates.
Uttarakhand is the second fastest mover in the conducive investment environment. It has attracted industrial investment proposals of more than Rs 31,000 crore in the last four years. The state has been able to develop three Integrated Industrial Estates at Haridwar, Pantnagar and Sitarganj, one Pharma city at Salequi and an IT park at Dehradun in a short span of ten years.
The main sectors of the state are agro and food processing, floriculture, handloom, hydropower, khadi and village industries and tourism. (KNN/SD)
On account of the recent floods which caused immense damage in the state, the Uttarakhand government wanted to introduce a new MSME policy under which it will offer various incentives to provide a boost to MSMEs in the state which are still grappling with the loss to their livelihood.
In this context, the Department of MSME had asked for suggestions from different business chambers in the state.
According to the draft submitted by IAU, the government should encourage private sector participation in infrastructure projects under Public Private Partnership (PPP) especially in industrial infrastructure, power, roads and bridges, health, tourism, education sectors, simplification of rules and procedures, self-certification and use of Information and Communication Technology (ICT) for hassle-free, timely delivery of services and further liberalisation of Estate Management Procedures.
Amongst other key strategies proposed by the chamber are strengthening of institutional support mechanism through a grievance redresser mechanism for industry and joint consultative framework; promoting quality competitiveness, R&D and technology up- gradation, laying special focus on cluster development, provision of flatted factories and incentivizing MSMEs; efficient use of renewable energy and adoption of labour-friendly policies.
Further, according to the proposal, units should be given capital subsidy of 15 per cent subject to a maximum of Rs 30 lakh, while micro enterprises should be eligible for 25 per cent. As far as interest subsidy is concerned, 7 per cent should be given for micro enterprises and 5 per cent for small and medium enterprises.
In addition, 1 per cent additional interest subsidy should be given to youth below 35 years of age, and woman entrepreneurs should be accorded priority, it suggested.
Further, IAU has demanded that maximum amount of interest subsidy should be Rs 25 lakhs per annum, for a period of five years.
The amount of interest subsidy should be paid to the Bank/FI with intimation to the unit, the draft said. In case the unit becomes defaulter in repayment to Bank/FI, such default period should be deducted from the period of five years, it added.
Some of the other demands in the proposal are – 100 per cent reimbursement of stamp duty; 25 per cent rebate in land cost limited to Rs 10 lakh in Industrial Estates/ Industrial Parks; 50 per cent land conversion charges for industrial use limited to Rs 10 lakhs; PPP mode to streamline supply of essential raw materials to MSEs; 50 per cent reservation of local resources for MSEs, reimbursement of VAT/CST or State Goods and Services Tax (SGST) and reduction of CST to ½ per cent for state manufacturing MSME Enterprises
Uttarakhand which has nearly 40,000 small enterprises had an annual average real growth rate of 12.4 per cent during the period 2005-06 to 2012-13.
The services sector contributes around 53 per cent in GSDP followed by the industry and agriculture sectors at around 36 per cent and 11 per cent respectively in 2012-13.
President of IAU, Pankaj Gupta, further proposed that the government should give technical support assistance for technology and efficiency upgradation and modernization; provide all support for the proposal for the setting up of Mini Tool Rooms to be sanctioned under National Manufacturing Competitiveness Programme (NMCP) ; support for the implementation of schemes under NMCP, financial as well as technical support for up-gradation, skill development, training etc.
The industry has also asked for government support to Cluster Development Schemes and establishment of common facility centres by Industrial clusters/ Associations at the rate of 25 per cent of the project cost.
“MSME s should be gradually extended the benefit of self-certification in respect of their compliance with statutory requirements,” suggested the draft.
Also, for the encouragement of existing and new entrepreneurs, awards in terms of cash and appreciation letter should be given to the units.
In June 2013, a multi-day cloudburst caused devastating floods and landslides in the state which hit 19,500 small units and caused an estimated loss of Rs 531 crore to them washing away their infrastructure completely.
“Industry-cum-service centres should be set up at Dehradun, Tehri, Srinagar, Uttarkashi, Nainital, Almora, Pithoragarh, Rudraprayag on areas ranging between 1 acre and 10 acres where as necessary support should be extended for establishment of new Industrial Estate,” IAU proposed.
Further, provision should be given for flatted factories and multi storied flatted factories to accommodate MSMEs should be made in the existing as well as new industrial estates.
Uttarakhand is the second fastest mover in the conducive investment environment. It has attracted industrial investment proposals of more than Rs 31,000 crore in the last four years. The state has been able to develop three Integrated Industrial Estates at Haridwar, Pantnagar and Sitarganj, one Pharma city at Salequi and an IT park at Dehradun in a short span of ten years.
The main sectors of the state are agro and food processing, floriculture, handloom, hydropower, khadi and village industries and tourism. (KNN/SD)
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