New Delhi, Sep 18 (KNN) The incentives provided by Yogi Adityanath to SC/ ST entrepreneurs is considered a great step by the MSMEs who feel it is very important for the up-gradation of the scheme ODOP.

Reacting to the sops provided by Uttar Pradesh government for promoting SC/ST and minority Micro, Small and Medium Enterprises (MSME) Industries Association, President, Sunil Vaish told KNN India that, "This will help in creating a good market and now it will be more flexible to sell goods and services.”

The division should not be on the basis of caste, creed and religion. The facilities should be given according to the financial condition of a person, he added.

Financial incentives will be provided to the MSMEs under the government’s flagship One District, One Product (ODOP) scheme that aims to foster the traditional industries.

Last month President Ram Nath Kovind had inaugurated the first ODOP Summit, “Hea said “UP had the potential to become a trillion dollar economy in future since it was abundant with socioeconomic resources of manpower, handicraft and traditional industries.”

Earlier, Prime Minister Narendra Modi had also exhorted UP to compete with Maharashtra in achieving the feat.

The state would provide almost 25% subsidy on project cost to new enterprises being set up under ODOP.

While, 25% subsidy or Rs 625,000, whichever is lower, would be given to projects of up to Rs 2.5 million, the corresponding figure for projects costing between Rs 2.5 million and Rs 5 million is 20% or Rs 625,000, whichever is higher, under the scheme.

Projects costing between Rs 5 million and Rs 1.5 billion, the margin money up to 15% or Rs one million, whichever is higher, would be provided. For projects, costing more than Rs 1.5 billion, the government would give margin money/grant of 10% of Rs 2 million, whichever is lower.

The subsidy would first be given as margin money through commercial banks, however, it would be later converted to grant on successful running of the enterprise for two years.

While, entrepreneurs belonging to the general category would be required to contribute 10% of the project cost through own resources, the mandate has been relaxed to 5% for the candidates belonging to the scheduled caste, scheduled tribe, other backward castes, minorities, women and physically challenged.

A task force will select the beneficiaries at the district level comprising the representatives of local administration, bankers, industries department etc.

The state had exchanged Memorandum of Understanding (MoU) with Amazon, Wipro GE Healthcare, Quality Control of India (QCI), National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for helping the state MSME sector through skill training, capital, marketing support and other institutional aids. Loans worth over Rs10 billion were distributed to 4,095 entrepreneurs, at ODOP Summit.

UP want to replicate the success of Japan and Thailand in promoting traditional industries for socioeconomic growth through ODOP, which seeks to bolster the traditional crafts in all the 75 districts of UP, said Adityanath.

He said the state as targetting to help 2.5 million youth in getting jobs and self- employment over the next 5 years with ODOP, which is aimed at projecting ‘Brand UP’ globally.