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Odisha MSME Development Policy

Odisha MSME Development Policy

Odisha MSME Development Policy

Odisha MSME Development Policy has been implemented through a consultative process that involves stakeholders of Industry Associations, Financial Institutions, Experts and the concerned Government Department. This article takes a closer look at the Odisha MSME Development Policy.

Objectives of the Policy

The goals of the policy are as follows.

  • Encourage new manufacturing capacity depending on improved competitiveness.
  • Provide a conducive eco-system for growth and promotion of MSMEs in potential sectors.
  • Provide oppourtunites to local entrepreneurial talent.
  • Maximum avenues of employment generation for the youth.
  • Facilitate MSMEs in accessing domestic and export markets.
  • Make concerted efforts for revival of the sick enterprises.
  • Make focus efforts for sustainable, inclusive and balanced growth.

Strategies of Odisha MSME Development Policy

  • Setting up of Facilitation cells at all Regional Industries Centres (RICs)/ District Industries Centres (DICs) and strengthening of the RICs/ DICs.
  • Development of MSME Parks in the districts to provide ready infrastructure for the establishment of MSMEs.
  • Development of product-specific clusters like cashew, engineering, rice-based products, pharmaceutical, plastic and polymer, readymade garments, agro and food processing, stonewares, etc.
  • Encourage product branding ‘Made in Odisha’ for global recognition.
  • Enhance the flow of credit to MSMEs by encouraging financial/ banks institutions through dedicated MSME branches.
  • Organise awareness programme, road shows, and investors’ meet extensively inside the country and at strategic locations overseas.

Ease of Doing Business

  • DICs/ RICs shall be the nodal agency for the development of MSMEs in the State.
  • All appropriate schemes/ assistance enunciated in the existing policies of the State Government and Government of India shall be linked at the RIC/ DIC level to enable investors to take advantage depending on their eligibility.
  • Facilitation cells would be set up at the State level/ RICs/ DICs authorised by professionals/ technical experts to support entrepreneurs/ investors.
  • An online mechanism for administration of incentives in a time-bound manner would be implemented to make sure sanction and release of incentives.
  • An online platform is set up for redressal of grievances of MSM entrepreneurs and investors.
  • A Central inspection co-ordination Group (CICG) is made active to simplify business regulations.
  • A State MSME board with National Board is established for the development of MSME.

Capacity Building and Skill Development

The MSME Department strives to maximise industries by entrepreneurial education using empanelled Project Institutes like Institutes of Higher Learning, ITIs, Entrepreneurial Development Centres under the National Scheme on Entrepreneurship Development. Technical Institutions/ Project Implementing Agencies are encouraged through Director, Technical Education and Training/ Director, Employment to assist MSMEs/ MSME Associations in the skill development, product/ process development, research and innovation.

Credit Flow to MSMEs

The Government encourages the opening of MSME dedicated bank-branch in industrial estates/ industrial hubs/ MSME Parks, Government land for such branches if required. The MSMEs would be encouraged to obtain credit ratings from reputed rating agencies for the facilitation of credit.

Supporting Framework

The supporting framework offered are given below.

  • Infrastructure Development
  • Support for Ancillary and Downstream Enterprises
  • Marketing Assistance
  • Export Promotion
  • Raw Material Support
  • Technology up-gradation

Financial Assistance

Capital Investment Subsidy

S.No.EnterpriseAssistance Provided
1New Micro and Small Enterprise25% of capital investment made in Plant and Machinery to a maximum of Rs. 1 crore.
2New Micro and Small Enterprise that is owned by SC, ST, differently abled, women and technical entrepreneurs30% of capital investment that is made in Plant and Machinery to a maximum of Rs. 1.25 crore.
3New Micro and Small Enterprise in industrially underdeveloped districts including KBK districts.Additional capital investment subsidy at 5% of investment made in Plant and Machinery to a maximum of Rs. 1.25 crore.
4New Micro and Small enterprises involved in recycling of e-waste, hospital waste, construction and demolition waste.Additional capital investment subsidy at 5% of investment made in Plant and Machinery to a maximum of Rs. 1.25 crore.

Seed Capital Assistance

The first generation women, SC, ST, differently abled entrepreneurs establishing Micro/ Small Enterprise in underdeveloped districts including KBK districts, entitled to a one-time grant equivalent to 10% of Term Loan given by financing bank/ institution to a maximum of Rs. 15 lakh.

Project Report Subsidy

New Microenterprises are entitled to a one time grant of up to Rs. 50,00 or 2% of the project cost. This amount will be provided after the sanction of the first instalment of term loan by bank/ Financial Institution to the Microenterprise.

Repayment of Audit Cost for Water Conservation

To encourage water conservation, a one-time refund of 50% of the audit cost up to Rs. 25,000 is provided to new MSMEs that undertake water conservation measures.

Assistance for Raising Capital through SME Exchange

New Small and Medium Enterprise receive a one time grant of 20% of expenditure for raising capital through SME Exchange up to Rs. 10 lakh after the successful raising of equity according to the schemes approved by SME Exchange.

Trade Mark Assistance

New MSME receives repayment of 50% of expenditure in obtaining a Trade Mark to a maximum of Rs. 25,000.

Refund of Training Expenses

The Government refunds 50% of the cost of skill up-gradation and training of the local workforce to a maximum of Rs. 3000 each, for ten people in Micro and 20 people in Small and Medium Enterprises. Thrust is provided on skill development of women to develop their employability and an additional training cost of Rs. 1000 is repaid to every woman.

Award to MSM Enterprise/ Entrepreneurs

To encourage efficiency and competition amongst MSM enterprises, annual State Awards are given to best MSM enterprises/ entrepreneurs for achieving highest turnover and highest employment. Adoption of environment-friendly and innovative technology, registration of patent etc. for every category of Micro, Small and Medium Enterprise.

Governance

Implementation of the provisions of this policy shall be periodically monitored and reviewed by a High-Level Committee that is constituted under the Chairmanship of Chief Secretary for mid-course correction/ amendments. The incentives and claims under the policy would be considered and approved by the following Committees.

S.No.Name of the CommitteeEnterprise
1District Level CommitteeMicro Enterprises
2State Directorate Level CommitteeSmall and Medium Enterprises

Provisions of the Policy

  • This policy and other existing policies provide financial and non-financial incentives for MSMEs.
  • An entrepreneur can choose to avail a particular incentive depending on the eligibility.
  • Incentives do not apply to an enterprise if similar incentives are availed under any other policies of the State Government or Government of India.
  • No right or claim for any incentive under this policy would be deemed to have been conferred on the ground of provision of this policy.
  • The Government considers condonation of delay in implementing projects on the recommendation of an Empowered Committee that is under the Chairmanship of Principal Secretary to Government, MSME Department.
  • Implementation of various provisions under the incentives and concessions is subjected to the notification of the guidelines/ statutory announcements by MSME/ the concerned Administrative Department.
  • New MSMEs are not eligible to receive incentives if it does not file its claim complete in all respects within a year of its commencement of production or within the given period in the Operational Guidelines of the several incentives.

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