Orissa moves to revive small industries

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Bhubaneswar , February 02 (Odisha.in) Orissa government on Sunday in principle came out with a new Micro,Small and Medium Enterprises  (MSME) Policy-2009 for promotion and revival of the sector.
 
The draft MSME Policy-2009 , which is prepared with the technical support of the UNIDO, has got the nod of the cabinet , which was presided over by the Chief Minsiter Naveen Patnaik.
 
The main thrust of the policy is to provide timely credit, infrastructure , raw materials and marketing support to MSME sector  to increase the employment potemtial and revenue as well.
 
As many as 25 per cent of the 37,000 traditional Small Scale Industries in Orissa , are sick and needs support of the government for their revival.
 
As part of the new MSME policy document, provision would be made for
Capital Investment subsidy to the tune of 10 to 12 per cent of the project cost to the enterprises with the minimum of Rs.8 lakh and maximum of Rs.12 lakh .
 
Besides, to boost the MSME sector, 20 per cent of lands in Land Bank and Industrial Parks and  equal per cent of  sheds in Industrial Estates would be earmarked for the  sector.
 
Similarly 10 per cent of the lands in Mega Industrial Projects would be kept reserved  for MSME sector to start ancillary and down-stream units, according to official sources.
 
To help encourage the MSME sector in a better manner, state cabinet has also approved the proposal to restructure the two state run institutions- the Orissa Small-scale Industries Corporation (OSIC) and the Orissa State Financial Corporation (OSFC).
 
It has been decided ,as part of the restructuring package , to introduce an One Time Settlement (OTS)  scheme, to  write-off the interest burden to the tune of Rs.9.24 crore  and also to convert the Rs.1.77 crore government's  loan to the OSIC to share capital, official sources said.
 
Hitherto , the OSIC, which has been providing raw materials support like iron, steel and bitumen , would supply ingredients like cement and paints in
concesional rates to the MSME units .
 
 The help the state owned OSFC, which has sustained huge loss and is unable to refinance ,to avail the financial support from SIDBI, the state
Government has also decided to covert its Rs.254 crore loan amount to
ordinary share capital.

Besides, the cabinet has also extended the OTS scheme for another six months in respect of OSFC to cover the Handloom sector to settle their loans, the sources said.

Odisha.in

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