Bhubaneswar: The state government has extended financial incentives to 278 MSMEs during the current fiscal, taking the total incentivised units to 639 from April, 2019.
This was revealed at State Level Empowered Committee meeting held under chairmanship of chief secretary Asit Tripathy on virtual mode on Friday evening. Principal secretary, Micro, Small and Medium Enterprises (MSME) Satyabrata Sahu presented the updates along with new proposals for sanction of subsidy.
The chief secretary directed 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 those add to inclusive growth in rural community,” he said.
The Kurpalu Solvent rice ban oil producing unit at Panikoili in Jajpur district set up with an investment of Rs 5.26 crore and Sri Ram Oil rice ban oil producing enterprise in Attabira of Bargarh with investment of around Rs 4.87 crore were sanctioned capital investment of Rs 1.73 crore and Rs 1.21 crore respectively.
“With this sanction, the total amount of financial incentives sanctioned during current year has crossed Rs 25.47 crore to 278 units,” said Director, Industries Reghu G.
Principal secretary Sahu said three types of direct financial incentives are provided to the MSMEs under different policies. Those are capital investment subsidy (at two slabs of 25% and 33%), interest subvention of 5% per year for five years and VAT reimbursement for five years.
Besides, the Government departments and PSUs have been directed to procure at least 20% of their requirement from local MSMEs. A total amount of Rs 34.52 crore was provided as one or other incentive to 361 units in 2019-20. Incentive of Rs 25.47 crore was provided to 278 units by November-end this fiscal.
With this, incentives have been extended to 639 units with total amount of Rs 69.99 crore from April, 2019 till November-end, 2020.
Development Commissioner Suresh Chnadra Mohapatra, principal secretary, Finance Ashok Kumar Meena, Addl Director, Industries Saroj Hota along with senior officers of different departments participated in the discussion.
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