MSMEs in Rajasthan: The Rajasthan government is planning a cumulative investment of Rs 10,000 crore to enable the setting up of 20,000 new MSMEs in the state along with employment generation for 1 lakh people, said Balwant Singh Ligree, Executive Director, Rajasthan Financial Corporation (RFC). RFC was established in 1955 to provide long-term loans to MSMEs at lower interest rates.
“We have targetted establishment of at least 20,000 new MSMEs through Rs 10,000 crore (investment) under the new MSME policy of 2022 and to create jobs for 1 lakh people,” Ligree said at the Jaipur edition of the FE Emerging Business Growth Workshops on October 6.
According to Ligree, RFC has provided approximately Rs 8,813 crore loans to 84,421 MSMEs.
Stating about the financing activities of RFC, Lingerie informed that the organisation has 20 schemes active and operational to finance MSMEs. The prime scheme of RFC is the Yuva Udyamita Scheme operational by RFC. Entrepreneurs aged below 45 with higher secondary education are eligible for loans under this scheme.
RFC provides loans up to Rs 5 crore under the scheme, of which loans up to Rs 1.5 crore are provided at the interest rate of 5.5 per cent, and beyond Rs 1.5 crore at a 10 per cent interest rate.
“Schemes such as Saral, General term loan scheme, and other schemes are available to finance businesses. Loans under the scheme are provided for land acquisition, mechanisation, establishment of windmills, etc. Only those industries which are situated in Reco or urban areas are eligible for the loans under the scheme. We have a lot of challenges ahead of us, and we are trying to do our best for it,” Ligree added.
Talking about the recent developments in the MSME sphere, Ligree said that the state government has planned for several relaxations for MSMEs, such as at the time of incorporation, financial assistance, technical upgradation and entrepreneurship development in the state.
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He also highlighted the support extended to MSMEs to suitable export markets. “We have developed export and trade promotion zones to help businesses find suitable markets. Under the Rajasthan Micro, Small and Medium Enterprises (Facilitation of Establishment and Enforcement) (Amendment) Bill, 2023, we have provided relaxation on registration and other compliances for three years of the incorporation of the business.”