MP government proposes grant, cheap land for MSMEs to encourage investment, boost employment

By: |
October 28, 2019 7:02 PM

Ease of Doing Business for MSMEs: According to the scheme called Madhya Pradesh MSME Protsahan Yojana, 2019, the government would provide 40 per cent grant for setting up businesses in the state.

Madhya Pradesh Chief Minister Kamal Nath, kamal nath, congressThe state cabinet had approved the MSME Development Policy 2019 ahead of the investment summit.

Ease of Doing Business for MSMEs: The Madhya Pradesh government, in order to boost MSME development in the state, has launched a scheme for small businesses that would focus on attracting investment and encouraging job creation among MSMEs in the state. According to the scheme called Madhya Pradesh MSME Protsahan Yojana, 2019, the government would provide 40 per cent grant for setting up businesses in the state along with a provision of acquiring cheap land by providing 70 per cent of employment to locals and representation of STs, SCs, and OBCs.

The scheme has already been implemented since October 1, 2019, and would provide the grant in four instalments while women and SC-ST entrepreneurs would get an additional grant of 2-2.5 per cent. After taking charge as Chief Minister, Kamal Nath had in December last year in his first press conference said that people from other states such as Uttar Pradesh and Bihar come in Madhya Pradesh and hence locals are not able to get jobs.

Watch | Business and Credit, both become difficult for MSMEs: Interview

The investment summit organised by the state government earlier this month saw India Inc top leaders including Dilip Shanghvi, Sanjiv Puri, Vikram Kirloskar, Adi Godrej, Rakesh Bharti Mittal and N Srinivasan announcing their plans to invest in the state. Reliance chairman Mukesh Ambani through a video message announced that the company will be setting up national distribution centres in Madhya Pradesh with over 10 million sq ft of space across 45 locations. Reliance has over 600 stores and 100 petroleum retail outlets in the state.

The state cabinet had approved the MSME Development Policy 2019 ahead of the investment summit with steps to incentivise textile, pharmaceutical and other sectors. The cabinet also gave nod to the state’s startup policy which will be implemented from April 1, 2020, PTI reported. MP was ranked 12 in terms of number of DPIIT recognised startups in India with only 525 such startups while Maharashtra had 3,661 and Karnataka had 2,847 startups — highest in the ranking.

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