Finance
The Odisha Cabinet approved the Odisha MSME Development Policy 2022 in order to accelerate the growth of enterprises in the state’s MSME sector.
According to an official press release, the new policy will replace the existing Odisha MSME Development Policy, 2016.
According to the press release, the new policy announces a number of progressive measures to encourage the growth of MSMEs in terms of job creation and contribution to the state’s GDP.
The Capital Investment Subsidy to New Micro, Small, and Existing Micro & Small Enterprises undertaking Expansion, Modernisation, and Diversification (E/M/D) has been extended to New Micro, Small, and Existing Micro & Small Enterprises undertaking E/M/D at the rate of 25% of Capital Investment made in Plant & Machineries, and the subsidy limit has been increased from Rs 1 crore to Rs 2 crore.
Similarly, the upper limit of the Capital Investment Subsidy for new and existing businesses owned by SC, ST, persons with disabilities, women, and technical (Degree/Diploma) entrepreneurs has been raised from Rs 1.25 crore to Rs 2.50 crore.
In order to support the growth of Micro and Small Enterprises in industrially backward districts such as Kalahandi, Nuapada, Bolangir, Subarnapur, Koraput, Nabarangpur, Rayagada, Malkangiri, Kandhamal, Gajapati, and Mayurbhanj, in designated IDCO Industrial Estates or Industrial Areas along the Biju Express Highway Corridor, and Enterprises of eight focus sectors such as Automobile & Auto Components, Plastic & Polymers, Steel & Stainless Steel, Defence Equipment, Aluminium, Pharmaceuticals, Medical Equipment and Apparel & Textile sector, an additional Capital Investment Subsidy @ 5% of investment made in Plant and machinery up to Rs 20 lakh over and above the limit prescribed of each of the category will be available.
For the first time, New and existing Anchor enterprises undertaking E/M/D will be eligible for CIS @30% of investment made in Plant & Machinery up to a maximum of INR 4 Crores, and the Policy also provided for an additional CIS @5% of capital investment made in technical civil works and Plant & Machinery for New and existing enterprises adopting non-polluting measures up to a maximum of INR 25 lakh.
This will aid in the promotion of green industries in order to encourage the manufacture of new types of products in the state.
This Policy also provides:
- Stamp Duty exemption in respect of transfer of land/ shed by Government, IDCO and Private Estate Developers to new enterprises and existing enterprises under E/M/D ranging from 75% to 100%.
- Payment of premium leviable on conversion of land for industrial purpose.
- Reimbursement of 50% of interest paid on term loan availed for a period of 5 years as interest Subsidy subject to a maximum limit of INR 1 crore.
- Electricity duty exemption for MSMEs up to a contract demand of 750 KVA for a period of 5 years
- Net SGST Reimbursement for New and existing enterprises undertaking Expansion/ Modernization/ Diversification (E/M/D) @ 75% of net SGST paid for a period of 3 years and for New pioneer enterprises @ 100% of net SGST paid for a period of 5 years.
- Subsidy @ 80% on the balance cost i.e., over and above the financial support provided by Government of India on the expenses incurred by the MSME for obtaining MSME sustainable ZED certification along with one-time reimbursement @50% of expenses incurred on acquisition of Plant & Machinery/testing equipment subject to an upper limit of Rs 2.00 lakhs to achieve “ZED Bronze” Rs. 3.00 lakhs for “ZED Silver” and Rs. 5.00 lakhs to achieve “ZED Gold” rating.
- Subsidy for Quality Certification for a period of 3 years @100% of the quality certification charges up to a total maximum limit of 5 lakhs.
- Employment Cost Subsidy @ 75% to 100 % reimbursement on employers’ contribution towards ESI and EPF for a period of 5 years for new and existing units undertaking E/M/D, for Micro, Small enterprises, similarly for a period of 3 years for new and existing units undertaking E/M/D, for Medium enterprises
- Technology Purchase Subsidy @50% of the amount spent on purchase of technology up to a maximum limit of INR 20 lakh.
- One-time grant of 20% of expenditure incurred for raising of capital through SME Exchange subject to a maximum of INR 10 lakh as “Assistance for raising Capital through SME Exchange”.
- Onetime reimbursement of 75% of water audit cost limiting to INR 1 lakh to new enterprises as “Reimbursement of Audit Cost for Water Conservation”.
- Onetime reimbursement of 75% of energy audit cost limiting to INR 5 lakhs to new enterprises as “Reimbursement of Audit Cost for Energy Conservation”.
- Subsidy on the cost of Patent Registration in India or abroad for New and existing enterprises undertaking E/M/D @100% of the registration cost up to a maximum limit of INR 5 lakhs.
- Reimbursement of 100% of expenditure incurred in obtaining Trade Mark subject to a maximum limit of INR 3 lakhs for New and existing enterprises as “Trade Mark Assistance”.
- State Awards to MSMEs in recognition of their contribution in development of MSME Sector; First prize Rs 1,51,000, Second prize Rs 1,00,000 and Third prize Rs 51,000.
Source:OCN
