Odisha govt to prioritise eight sectors under new MSME development policy

Bhubaneswar, Dec 28 (KNN) The Odisha cabinet headed by Chief Minister Naveen Patnaik on Tuesday approved the state MSME development policy 2022 replacing the existing 2016 policy.

The state government in the new policy has decided to provide an additional capital investment subsidy of five per cent up to Rs 20 lakh in plant and machinery to set up plants in eight focus MSME sectors in the backward districts of the state.

As per reports, the eight focus sectors include automobile and auto components, plastics and polymers, steel and stainless steel, defence equipment, aluminium, pharmaceuticals, medical equipment and apparel and textile. These sectors will be encouraged in Kalahandi, Nuapada, Balangir, Subarnapur, Koraput, Nabarangpur, Rayagada, Malkangiri, Kandhamal, Gajapati and Mayurbhanj.

Under the new policy, the enterprises will have to be set up in designated IDCO industrial estates or industrial areas along the Biju Express Highway Corridor of these districts.

The upper limit of the capital investment subsidy has been enhanced to 25 per cent, from Rs 1 to Rs 2 crore for expansion, modernisation and diversification of the plant and machinery of existing units.

Similarly, the upper limit of capital investment subsidy for new and existing enterprises owned by SC, ST, persons with disabilities, women and technical degree/diploma holder entrepreneurs has been enhanced.

The new and existing anchor enterprises that decide to expand, modernise and diversify will be eligible for capital investment subsidy at 30 per cent of investment made in plant and machinery subject to a maximum limit of Rs 4 crore.

Moreover, there will be a subsidy of five per cent of the capital investment made for adopting non-polluting measures in technical civil works and plant and machinery to help in the promotion of green industries.

During the meet, the cabinet also approved the tender for the construction of an in-stream storage structure across river Mahanadi at Choudhury Gada in Jagatsinghpur district and Paika River at Tikhiri in Kendrapara district to create large water bodies within river embankments without displacement of people. The project is estimated to cost Rs 348.09 crore and is planned to be completed in 36 months.  (KNN Bureau)