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Jharkhand Draft MSME Policy Proposes Interest Subsidy of 5% to New units

Updated: Nov 17, 2023 02:00:01pm

Jharkhand Draft MSME Policy Proposes Interest Subsidy of 5% to New units

Ranchi, Nov 17 (KNN) The Jharkhand government on Wednesday released draft MSME Policy 2023 which proposed interest subsidy of 5 per cent per annum for new MSMEs on timely payment of loans availed from public financial institutions or banks for five banks from the date of commercial production.

The maximum limit would be Rs 25 lakh for micro units, Rs 1 crore for small enterprises and Rs 2 crore for medium enterprises.

The guarantee fee charged under the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) scheme to Micro and Small Enterprises (MSEs) will be reimbursed to the enterprises in order to improve the CGTMSE coverage for collateral-free loans in the state. 

The Draft Policy has suggested a dedicated directorate of MSME at the state level and a District MSME Centre (DMC) in every district of the state.

While the directorate will be responsible for the implementation of state and central government MSME schemes and programmes in the state, DMCs will provide necessary services and support to facilitate entrepreneurs in setting up MSMEs such as Udyam registration, single-window clearances, expansion of manufacturing and service MSMEs in rural and urban areas etc. 

Initially, the existing District Industry Centres (DICs) in the state will be designated as DMCs in the district to support MSMEs.

Currently, Jharkhand has more than 3.5 lakh MSMEs registered on the Udyam portal, according to the data from the portal. This was 1.69 per cent of 2.08 crore Udyam MSMEs (excluding registrations via Udyam Assist Platform) across India.

The draft policy also proposed to launch the Jharkhand MSME Special Concession Act 2023 to provide exemptions to MSMEs from all approvals and inspections such as permission, NOC, clearance, approvals, consent, registration, licence, etc. under any state law in connection with establishment or operation of an enterprise. 

The government said it will also focus on cluster-based development of MSMEs to “position MSMEs on a level playing field with large players while retaining their integrity as individual businesses,” the draft noted. 

Through these steps the state government aims for the development and growth of the MSME sector in Jharkhand. 

Access the draft Jharkhand MSME policy here: https://advantage.jharkhand.gov.in/policyFeedback/policiesFeeds/download/MV85X0RyYWZ0LUpoYXJraGFuZC1NU01FLVByb21vdGlvbi1Qb2xpY3ktMjAyM18yMDIzLTA3LTE0IDA3LTIyLTMwX2RyYWZ0LnBkZg==/NWZjMWRmN2YtMDYwYS00YWQyLTlhOTItN2Q4OGIyYTc5N2Nk

(KNN Bureau)


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