UP Govt decisions will strengthen the MSME sector in state: Dr E Muthuraman


New Delhi 29 September 2022- Dr E Muthuraman Vice Chairman MSMEPC welcomed the decisions taken my UP cabinet under the visionary leadership of Hon’ble Cheif Minister of UP Sh. Yogi Adityanath. The state government has opened the treasury for the promotion of this sector by approving the new MSME Policy-2022. Provision has been made for capital subsidy of up to 25 percent on investment and interest subvention (subsidy) of up to 50 percent on the loan taken. 100 percent exemption in stamp duty will be given on purchase of land for setting up MSME park of more than 10 acres in the state. Not only this, financial assistance of up to Rs 10 crore can also be given for Common Effluent Treatment Plan (CETP) for the disposal of effluents.

Small and Medium Enterprises Promotion Policy-2022 has been approved. Any amendment in this can be done only after the approval of the Chief Minister. Under the new policy, subsidy ranging from 10 percent to 25 percent will be made available as capital subsidy to the new MSME enterprises to be set up. Capital subsidy (rebate) is available on investment in plant and machinery etc. In Bundelkhand and Purvanchal regions, this limit of subsidy will be up to 15-25 percent and in Madhyanchal and Paschimchal by 10-20 percent. Two percent more relaxation will be given for SC-ST and women entrepreneurs. The maximum limit of subsidy has been fixed at Rs 4 crore per unit. MSME Minister Rakesh Sachan said that such a policy has been brought for the first time in UP. This will help in encouraging MSMEs.SC-ST and women entrepreneurs will get 60 percent rebate
in interest, 50 percent rebate on annual interest payable on loan under capital interest subvention for new micro industries to be set up in the state. This interest subvention will be given for 5 years and the maximum limit will be Rs 25 lakh per unit. For SC-ST and women entrepreneurs, this interest subvention will be up to 60 percent.

Up to 5 lakh compensation for listing in stock exchange
As per the policy, MSME units will be encouraged to list on stock exchanges to make credit available from maximum sources. All such units will be reimbursed 20 per cent of the listing expenses and a maximum of Rs 5 lakh. Establishment of flatted factories will be encouraged.

5 acres of gram sabha land will be available for industries
For setting up MSME park of more than 10 acres, 100% stamp duty exemption on land purchase and 50% interest subvention (maximum Rs. 2 crore) will be made available for 7 years on the loan taken. The process of allotment of plots and sheds in industrial estates will be made online. To encourage MSMEs in rural areas, 5 acres or more of Gram Sabha land will be recaptured and transferred to the Directorate of Industries free of cost. While developing the plots, the department will allot it at the circle rate of the District Magistrate. MSME units will be encouraged through development of industrial estates within a distance of 5 km on either side of the expressway. There is also a provision to encourage CETP in view of the problem of effluent treatment in traditional industrial clusters.

Assistance for Hallmarks also
to achieve quality standards like Zero Effect-Zero Defect, WHO GMP, Hallmark etc. Financial assistance up to 75 per cent of the total cost and up to a maximum of Rs.5 lakh will be given. Financial assistance up to Rs 2 lakh will be available for obtaining GI registration and patent etc. Financial assistance up to a maximum of Rs 20 lakh will be provided to MSME units for adopting clean and green technology. Entrepreneurship will be promoted among the youth of the state on the basis of entrepreneurship courses while developing the Institute of Entrepreneurship Development as a Center of Excellence.

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