Odisha Government Extends Financial Incentive To 278 MSMEs: Report

Considering the new proposals, the chief secretary accorded an in-principle approval for Capital Investment subsidy worthRs 2.94 crore in favour of two small scale enterprises.

Odisha Government Extends Financial Incentive To 278 MSMEs: Report
Bhubaneswar:

In its bid to strengthen the Micro, Small and Medium Enterprises (MSMEs) sector, the Odisha government has extended financial incentives to 278 units in the current fiscal year, official sources said. With this, the total number of units getting incentives increased to 639 since April this year. The total amount of incentive has touched Rs 69.99 crore, they said on Saturday.

The matter was discussed in a meeting of the State-Level Empowered Committee, chaired by Chief Secretary AK Tripathy.

Considering the new proposals, the chief secretary accorded an in-principle approval for Capital Investment subsidy worth Rs 2.94 crore  in favour of two small scale enterprises.

Mr Tripathy directed officials to "follow a transparent and proactive practice in assessment and disbursal of different financial incentives to MSME units for attracting more and more young entrepreneurs into the sector".

"MSMEs are prime movers of rural economy and they add to inclusive growth in the rural community," Mr Tripathy said. He directed officials to "facilitate the process by providing proactive planning, technical and handholding support to the sector".

The field-level officers were asked to be in constant touch with local entrepreneurs and instill confidence in them, Mr Tripathy said.

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"Mainly three types of direct financial incentives like capital investment subsidy (at two slabs of 25 per cent and 33 per cent), interest subvention @ of 5 per cent per year for five years and VAT reimbursement for five years are provided to the MSMEs under different policies," MSME Secretary Satyabrata Sahu said.

Besides, the government departments and PSUs have been directed to procure at least 20 per cent of their requirement from local MSMEs, Mr Sahu said, adding that in the year 2019-20, a total of around Rs 34.52 crore was provided as incentives to 361 units.

By the end of November, incentives worth Rs 25.47 crore were provided to 278 units so far this financial year.

With this, a total of 639 units were given incentives worth Rs 69.99 crore from April 2019 till the end of November 2020, he said.

These units are spread over the sectors like fly-ash brick-making, paper egg trays, corrugated papers, plastic-moulded products, milk and milk products, bakery, paper cup and plates, cotton ginning plant, shrimp processing, rice mills, cement products cashew kernels, rice bran oil, spices, pickles, noodles, PVC pipes and other miscellaneous industries.