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Govt approves new guidelines for scheme to promote MSMEs in North East with enhanced financial support

Ease of Doing Business for MSMEs: The revised scheme will be implemented during 15th Finance Commission Cycle (FY22-FY26 to provide financial support for enhancing the productivity, competitiveness and capacity building of MSMEs based in the NER and Sikkim.

msmes in north east
The existing guidelines of the scheme were approved in 2019. (Express photo)

Ease of Doing Business for MSMEs: Days after announcing modifications to the Prime Minister’s Employment Generation scheme (PMEGP), the government on Thursday said it has approved new guidelines for the scheme Promotion of MSMEs in North Eastern Region (NER) and Sikkim. The revised scheme will be implemented during 15th Finance Commission Cycle (FY22-FY26 to provide financial support for enhancing the productivity, competitiveness and capacity building of MSMEs based in the NER and Sikkim. The existing guidelines of the scheme were approved in 2019.

Under the new guidelines, the MSME Ministry has enhanced the upper limit of financial assistance for various components of the scheme. For instance, maximum financial support to state governments for setting up new and modernizing existing Mini Technology Centres has been increased from Rs 10 crore to Rs 13.50 crore as 90 per cent of the project cost. Projects for creation of common facilities to supplement manufacturing, testing, packaging, R&D, product and process innovations and training for natural resources such as fruits, spices, agriculture, forestry, sericulture and bamboo etc. available in NER and Sikkim would be given priority, the ministry said. 

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Likewise, financial assistance for development of new and existing industrial estates, flatted factory complexes has been increased to Rs 9 crore for new industrial estates and Rs 13.50 crore for existing ones. Earlier, the upper limit was Rs 8 crore for both new and existing estates. In terms of percentage, the share if support has been enhanced to 90 per cent of the project cost from 80 per cent in previous guidelines. However, the maximum project cost for calculation of assistance should be Rs 15 crore for new industrial estate and Rs 10 crore for existing estate in the revised guidelines. 

Moreover, the scheme may also consider projects for creation of common services such as kitchen, bakery, laundry and dry cleaning, refrigeration and cold storage, IT infra, etc., in a cluster of home stays under the revised guidelines. “There has to be linkages of projects with local MSEs. The financial assistance of central government will be 90 per cent for projects with maximum assistance of Rs 4.50 crore,” the ministry added. 

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