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New MSME Policy

Bhubaneswar: MSME Policy of Odisha envisages various progressive measures to incentivise the growth of MSMEs in promoting employment and contribution of MSME sector to the State’s GDP, said Chief Secretary SC Mahapatra.

The State Cabinet cleared the Policy in which capital investment subsidy to new Micro, Small Enterprises has been extended to new micro, small and existing micro and small enterprises undertaking expansion modernisation and diversification (E/M/D) at the rate 25% of capital investment made in plant and machineries.

The subsidy limit has been enhanced from Rs 1 crore to an upper limit of Rs. 2 crore.

Similarly, the upper limit of capital investment subsidy for new and existing enterprises owned by SC, ST, persons with disabilities, women with technical (Degree/Diploma) entrepreneur has also been enhanced from Rs. 1.25 crore to Rs. 2.50 crore.

In order to support growth of Micro, Small enterprises in Industrially Backward Districts namely Kalahandi, Muapada, Bolangir, Subampur, Koraput, Nabarangpur, Rayagada, Malkangiri, Kandhamal, Gajapati and Mayurbhanj, in designated IDCO Industrial Estates or Industrial Areas along Biju Express Highway Corridor and Enterprise of eight focus sector in Automobile & Auto Components, Plastics 8t 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 shall also be eligible for CIS @30% of investment made in plant & machinery subject to a maximum limit of Rs 4 crore.

The policy also provisioned an additional CIS @5% of capital investment made in technical civil works and plant & machinery for the New and existing enterprises adopting non-polluting measures, subject to an upper limit of Rs 25 lakh.

This will help in promoting green industries with a view to promote manufacturing of new type 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 Rs 1 crore and electricity duty exemption for MSMEs up to a contract demand of 750 KVA for a period of 5 years.

It also provides for net SGST reimbursement for new and existing enterprises undertaking Expansion/Modernization/ Diversification (E/M/D) @ 75pc 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.

Provision has also been made for a subsidy @ 80pc 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 @50pc of expenses incurred on acquisition of Plant & Machinery/testing equipment subject to an upper limit of Rs 2 lakh to achieve ‘ZED Bronze’, Rs. 3 lakh for ‘ZED Silver’ and Rs. 5 lakh to achieve ‘ZED Gold’ rating.

Further, the new policy envisages subsidy for Quality Certification for a period of 3 years @100pc of the quality certification charges up to a total maximum limit of 5 lakh, employment cost subsidy @ 75pc to 100 pc 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 the raising of capital through SME Exchange subject to a maximum of Rs 10 lakh as ‘Assistance for raising Capital through SME Exchange’.

One-time reimbursement of 75% of water audit cost limiting to Rs 1 lakh to new enterprises as ‘Reimbursement of Audit Cost for Water Conservation’ and an Onetime reimbursement of 75% of energy audit cost limiting to Rs 5 lakh 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 Rs 5 lakh has also been provisioned.

Reimbursement of 100pc of expenditure incurred in obtaining Trade Marie subject to a maximum limit of INR 3 lakhs for New and existing enterprises as Trade Mark Assistance’.

The State Awards to MSMEs in recognition of their contribution in development of MSME Sector shall be First prize Rs. 1,51,000, Second prize Rs. 1,00,000 and Third prize Rs. 51,000.