Credit and Finance for MSMEs: Small Industries Development Bank of India (SIDBI), the principal financial institution for MSMEs in India, on Thursday, signed a memorandum of understanding (MoU) with the Uttar Pradesh (UP) government’s Department of MSMEs and Export Promotion to help develop private industrial parks in the state under the latter’s PLEDGE (Promoting Leadership and Enterprise for Development of Growth Engines) scheme. The MoU was signed in the presence of the state’s Chief Minister Yogi Adityanath, SIDBI tweeted.
As per the MoU, SIDBI will offer financial assistance to meet the funding gap for establishing private industrial parks. SIDBI will also provide financial support to eligible MSMEs for setting up their units in these industrial parks and also to enterprises setting up green projects “aligned with the nation’s commitment to reduce greenhouse gas emission,” SIDBI said.
Also read: Around 9,000 MoUs signed with MSMEs at UP’s Global Investors Summit
The PLEDGE scheme was approved by the UP government in January this year, allowing private companies to develop industrial parks in the state. Among benefits, the scheme provides for a 100 per cent exemption on stamp duty.
Industrial parks are the areas zoned for industrial development, mainly containing offices and light industries instead of heavy industrial sites. These zones are located away from residential areas and are provided with special facilities and infrastructure appropriate for workspaces.
Also read: UP Govt approves MSME Promotion Policy 2022 and UP Bioenergy Policy 2022
Uttar Pradesh is home to the third largest number of MSMEs in the country, as per the Udyam portal with more than 13.54 lakh registered MSMEs. On the other hand, according to the state’s investment promotion agency Invest UP, the state had an overall 90 lakh MSMEs with a share of 14.2 per cent in India’s total MSME base of 6.33 crore.
Earlier this year, the state saw nearly 9,000 MoUs signed worth Rs 1.37 lakh crore between MSMEs and investors at the Uttar Pradesh Global Investors Summit 2023 while 6,212 MoUs were signed for MSMEs whose investment amount was less than Rs 10 crore, according to an ANI report
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