Ease of Doing Business for MSMEs: Odisha Government under its new MSME Development Policy has extended Capital Investment Subsidy (CIS) to new and existing MSEs, who are expanding, modernising and diversifying (E/M/D) their business by making at least 25 per cent of their capital investment in plant and machinery, to Rs 2 crore from the earlier upper limit of Rs 1 crore.
The new MSME Development Policy was approved by the cabinet presided by Chief Minister Naveen Patnaik. It will replace the existing Odisha MSME Development Policy, 2016.
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In a tweet, Odisha CM Naveen Patnaik noted, “Policy announces progressive measures to incentivise growth of MSMEs in promoting employment & contribution of the sector to State’s GDP.”
The upper limit of CIS for new and existing enterprises owned by SC (Scheduled Caste), ST (Scheduled Tribe), persons with disabilities, women and technical (Degree/Diploma) entrepreneurs also increased to Rs 2.50 crores from Rs 1.25 crores.
The policy offers an additional CIS of 5 per cent for eight key sectors in industrially backward districts where investment made in plant and machinery is over Rs 20 lakhs over and above the limit prescribed of each of the categories. The key sectors are Automobile & Auto Components, Plastics & Polymers, Steel & Stainless Steel, Defence Equipment, Aluminium, Pharmaceuticals, Medical Equipment and Apparel & Textile sector located in areas such as Kalahandi, Nuapada, Bolangir, Subarnpur, Koraput, Nabarangpur, Rayagada, Malkangiri, Kandhamal, Gajapati and Mayurbhanj, in designated IDCO (Industrial Infrastructure Development Corporation) Industrial Estates or Industrial Areas along Biju Express Highway Corridor.
The policy, for the first time, is making new and existing anchor enterprises undertaking E/M/D to be eligible for CIS at 30 per cent of investment made in plant and machinery with a cap of Rs 4 crores.
Further to promote sustainability and green industries, it provisioned an additional CIS at 5 per cent of capital investment in technical civil works and plant and machinery for the new and existing enterprises adopting non-polluting measures with a cap of Rs 25 lakhs.
In an effort to push technology adoption amongst MSEs, the state has announced a technology purchase subsidy of 50 per cent of the amount spent on the purchase of technology with a maximum limit of Rs 20 lakh.
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Besides, it will provide an electricity duty exemption for MSMEs up to a contract demand of 750 KVA for a period of five years. Other reliefs such as reimbursement of 100 per cent of expenditure incurred in obtaining a trademark with a cap of Rs 3 lakhs and subsidy on patent registration cost for enterprises undertaking E/M/D at 100 per cent with a cap of Rs 5 lakhs will be provided.