Tamil Nadu unveils new MSME policy; targets investment worth Rs 2 lakh cr by 2025

Chennai, Feb 16 (KNN) The Tamil Nadu (TN) government on Tuesday announced new Micro, Small and Medium Enterprises (MSME) policy 2021 which has set a target to make the state the most vibrant ecosystem for MSMEs, start-ups to thrive and scale-up.

The MSME policy 2021 has also set a target to attract new investments worth Rs 2 lakh crore in the sector by 2025 and create additional employment opportunities for 20 lakh people.

Apart from these, the policy will increase the share of exports from the MSMEs in the state by 25 per cent.

The Policy strategies is to strengthen Ease of Doing Business through District Industries Centres (DICs).

''Under the Business Facilitation Act, exemptions will be given for various state approvals for a period of 3 years to New MSMEs and Start-ups based on self-certification subject to certain conditions,'' the order read.

The policy will also expand the access to affordable finance through ongoing schemes like the Unemployed Youth Employment Generation Programme (UYEGP), along with the New Entrepreneurs cum Enterprise Development Scheme (NEEDS) and Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

''Facilitate scaling up MSMEs through listing support and other attractive incentives by the state government. A corpus fund of Rs 500 crore for the Estate Infrastructure Development & Maintenance Fund will be set up for up-gradation and better maintenance of TANSIDCO estates, development of Trade Centres for MSME Associations and Estates of Industrial Corporates,'' the order said.

The policy will facilitate access to National and Global Markets by giving purchase preference and tapping Government procurements through Government e-Market place (GeM) portal.

''Improve competitiveness and productivity by facilitating testing, technology Up gradation. Cluster Development initiative will be strengthened,'' it said.

''The package of incentives and concessions contained in this policy will be eligible to all new existing Micro, Small & Medium Enterprises from the date of release of MSME Policy, 2021. These incentives will also be eligible for units taking up substantial expansion, diversification of their existing activities on the incremental assets created towards expansion and diversification. The guidelines in this regard will be issued separately,'' the order read further.

The objectives of the policy are as followed: Promote and facilitate national and international investments in the sector; Provide thrust for scaling up and diversification of MSMEs; Expand employment generation; Augment infrastructure support; Promote balanced industrialisation; Facilitate access to national and global markets; Improve competitiveness and productivity; Reinforce social equity and inclusion; Provide exposure to state of the art technology and support adoption of Industry 4.0.