Special Incentives and facilities to Mega Projects under III Policy 2012 'Samadhan Divas' started by State Level Udyog Bandhu every First & Third Thursday Help Line implemented for resolution of issues of entrepreneurs, businessmen and investors of ...... Formats for Mega Projects Draft Property Management (Industrial Land) Rules & Regulations, 2014 To encourage mega projects in the state INDUSTRIAL ASSETS AVAILABLE FOR SALE Entry Strategies for Foreign Investors NRI Cell at Udyog Bandhu Vacant Land with Govt. Deptt. Restructuring of State, Division & District level Committies of Udyog Bandhu Strengthening of Udyog Bandhu Golden Card Scheme

State Govt . support for MSME sector

It is a challenging task for the Govt. to provide required support to MSME sector ,where no. is large, widely scattered units which have limited resources and knowledge to compete in the domestic market as well as in global market. The govt. is aware of the mammoth responsibility and it has created an enabling environment for the entrepreneurs to flourish their ventures by giving them technological and marketing support along with developing required infrastructure under its various schemes .

TECHNOLOGY SECTOR  

For development of   competitiveness   among the small scale industries  under the changed scenario due to economic globalization and  worldwide competition , the state Govt. has implemented U.P. Micro and Small Industries Technology Up-gradation Scheme in 2007 under which assistance  is provided to micro and small enterprises for development and up gradation of technology as under :    

  • Amount incurred for purchase and import of technology @ 50% subject to a maximum of Rs 2.50 lacs .
  • Amount incurred for purchase P/M for enhancement of capacity and quality improvement @ 50% subject to a maximum of Rs 2.00 lacs     
  • Interest subsidy. @ 50% subject to a maximum of Rs 0.50 lacs.          
  • Amount incurred for obtaining ISO/ISI certification @ 50% subject to a maximum of Rs 2.00 lacs    
  • Amount incurred for consultancy world wide competition@ 50% subject to a maximum of Rs 0.50 lacs .
                                                                     (Click here for G.O. )
 
Number of units have been assisted under the scheme and a sum of Rs.655.14 lacs has been provided to 388 units since 2007-08 till Dec.  2010, as per details given here as under :-
 

S.No
Year
Units Assisted
Amount in (lacs)
1
2007-08
76
113.84
2
2008-09
108
200.00
3
2009-10
122
200.00
4
2010-11
(Dec, 2010)
82
141.30
 
Total
388
655.14

Source : Director of Industries
 
MARKETING SECTOR   
 
To assist MSMEs in marketing sector for development, promotion and for better prospects of the products being manufactured, specially by  micro and small industries/enterprises, the Govt. has provided institutional support in form of establishment of  UPTPA (Uttar Pradesh Trade Promotion Authority) under Directorate of Industries, U.P and Export Promotion Bureau.
 
The UPTPA has been given the responsibility to  arrange, participate and  coordinate in seminars/trade fairs/exhibitions ,nationally as well as internationally to provide small entrepreneur a plate farm for development and promotion of market prospects for their product. The UPTPA also provides marketing assistance under Marketing Development Assistance Scheme in which the entrepreneur are assisted to attend/ participate in seminars /trade fairs all over the country by way of reimbursement of expenses incurred towards participation/stall charge, fair, etc.
 
Further to encourage the successful entrepreneur of MSME Sector, the Government has implemented Baba Saheb Dr. Bheem Rao Ambekar Small Industries State Award Yojna in 2009 under which the entrepreneurs of Micro, Small & Medium enterprises are awarded with cash, testimonial, etc. separately on the basis of turn over, product specific, quality, research etc. A provision of Rs. 12 lacs have been made for the financial year 2011-12 under the scheme.
 
The Export Promotion Bureau was established by the Govt. of Uttar Pradesh in 1999 for promoting exports from the State of U.P. The objective of the EPB is to take effective steps for Export Promotion in Coordination with all the Government Departments for the Exporters. It interacts with exporters on the one hand and Export Promotion Councils, Agencies, Export Associations, State & Central Government bodies on the other hand. The Bureau assists exporters in export procedure and coordinates for various facilities and assistance offered by the State & Central Agencies.
 
The EPB provides marketing assistance specially to small entrepreneurs enabling them to enter into/enhance their market base in international market under Rapid Export Development Promotion Scheme and Subsidy on Freight Charges Scheme. The details of these schemes are as under:
 

Particulars
Eligibility
Prescribed fee
Details
A- Support for exporters at international level
a)   Foreign Fairs/Exhibition
MSME Exporter reg. with EPB & concern DIC
 
 
 
NIL
60% of Stall charges paid upto max. of Rs. 100000/- for one fair/exhibition
Air Fare 50% by economy class max. upto Rs. 50000/- per fair for one person.
b)       Publicity advt., printing of catalogue & development of website
MSME Exporter reg. with EPB & concern DIC
 
 
60% of total cost of Expenditure maximum up to Rs. 60000/- annually.
 
c)       Samples to foreign buyers
 
MSME Exporter reg. with EPB & concern DIC
 
 
75% of total expenses on air-freight courier for sending samples max. assistance up to Rs. 50000/- per year.
 
d)       Facility for obtaining ISO 9001-2000/BIS 14000, Wool mark, Hall mark, HACCP & C-mark
MSME Exporter reg. with EPB & concern DIC
 
 
50% of total expenses max. upto Rs. 75000/- per year
B- Subsidy on freight charges upto gate way port.
a) Export Cargo sent by ICD/CFS
 
SSI Exporter reg. with EPB and concern DIC
 
Nil
25% of freight charges maximum upto Rs. 5000/- per container (20ft) is admissible to exporting units to send their goods by State ICD/CFS to the gateway port. This amount is sanctioned by the district users committee chaired by D.M. of the concerned district.
b) Export Cargo sent by Air Cargo Complex in U.P. (Amausi, Lucknow and Babatpur, Varanasi)
SSI Exporter and Merchant Exporter with EPB and concern DIC
Nil
 
20% of air freight charges on sending export cargo or Rs 50 per k.g (lower of two).

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of  small entrepreneurs/exporters /manufacturers   have been assisted under Rapid Export Development Promotion Scheme and Air Freight Subsidy Scheme and  a sum of Rs. 2465 lacs has been provided to them under these schemes since 2007-08 till Dec. 2010 . Details are as under:
 

Year
Rapid Export Development Promotion Scheme
Air Freight Subsidy Scheme
 
No. of Units
Amount
(Rs. in lac)
No. of Units
Amount
(Rs. in lac)
2007-08
756
598.00
-
-
2008-09
686
763.00
11
5.84
2009-10
775
763.00
07
4.72
2010-11
534
527.00
06
3.19
TOTAL
2751
2651.00
24
13.75

 
The Govt. has also adopted Purchase Preference/Price Preference Policy for developing and providing marketing support specially to micro and small enterprises of the state in govt. purchases of various materials/items being used in various offices of the govt..
 
Price Preference Policy
 
1.Price Preference@10% to MSEs of the state in comparision to MSEs of other states.                
2.Price Preference@15% to MSEs of the state in comparision to Medium and Heavy enterprises  of other states.               
3.Price Preference@5% to MSEs of the state in comparision to Medium and Heavy enterprises /industries of states.                
4.Price Preference@5% to Medium and Heavy enterprises/ of the state in comparision toMedium and Heavy enterprises/ industries of   other states.               
 
Purchase Preference Policy
 
In any contract ,units of state and other states participate and rates of other state unit are lowest ,all the units of the state, whose rates are higher upto 10%of the lowest, shall also be notified  alongwith unit of other state offered the lowest rate ,provided they agree to supply on lowest rate.
 
In any contract ,units of state and other states participate and rates of state unit are lowest ,all the units of the state, whose rates are higher upto 10%of the lowest shall be notified provided they agree to supply on lowest rate but no unit of other states shall be notified. 
 
( Click here for G. O.)
 
 
 
Infrastructure Sector
 
The State Govt. is committed to improve over all infrastructure and logistical facilities, so essential for driving industrial and economic growth. Special emphasis has been given to improve and maintain existing industrial estates/industrial areas.
 
In the state 80 number of industrial estates were developed by the government for setting up of the industrial units mainly by small entrepreneurs, the government  is running a scheme for strengthening and up gradation of infrastructural facilities in its estates  and a sum  of Rs. 6.98 crore has been incurred towards improvement /maintenance of  facilities such as roads, streets, water supply and drainage system in exiting industrial estates located in different cities/towns of the state from 2007-08 to Dec. 2010. The details are as under :

Sl. No.
Year
No. of Industrial Estate
Amount Invested
(Rs. in Cr.)
1.
2007-08
16
3.98
2.
2008-09
07
1.00
3.
2009-10
05
1.00
4.
    2010-11( up to Dec. 2010)
05
1.00
Total
33
6.98

     Source : Director of Industries  
 
The govt. has also adopted the cluster development approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of micro and small enterprises.    In this regard, it has selected 22 clusters to provide infrastructural support and technological support under Micro &Small Enterprises- Cluster   Development Programme (MSE-CDP) of MSME department of GOI. Out of 22 clusters, five are Common Facility Centre (hard intervention) at Varanasi (Glass beads), Bhadohi (Carpet), Khurja (Pottery), Gorakhpur (Leather), and Meerut (Scissors) for investment of Rs. 23 crores with state share of Rs. 6 crores and 17 soft intervention clusters at different areas/cities for investment of Rs. 1.25 crores.  
 
Further ,under ASIDE scheme for export infrastructure, all major export centers have been assisted under PPP mode.
 
The Govt. of U.P.is also providing attractive fiscal incentives to the MSME sector in form of granting interest free loans under Nivesh Protsahan Yojna against VAT payments & exemptions from stamp duty and electricity duty, speedy online clearances through 'Nivesh Mitra' easy availability of developed industrial plots, healthy labour relation and crime-free and fear - free atmosphere. The sector has been offered various special incentives and concessions which are summarized here under :-
1.      FISCAL INCENTIVES
Grant of Interest Free loan under Nivesh Protsahan Yojna for 10 years repayable after 7 years to new units and have made fixed capital investment of Rs.5.00 crore or more in Food Processing Sector, Rs.10.00 crore or more in Eastern U.P. and Bundelkhand and Rs.25.00 crores or more in other districts. Amount of loan shall not exceed 10% of turnover or sum of the trade tax/ vat and central sales tax paid by the units.
 
2.      LAND RELATED INCENTIVES
 
  • Exemption from stamp duty on transfer of land as under:-
 
Sl. No.
Particulars
Eastern U.P. & Bundelkhand
Rest of the state
1
New Micro and Small units
100%
50%
2.
Other new units
50%
50%
3.
Agro Processing, Information Technology /Bio Technology & Specify Infrastructure Units
100%
100%
 
  • Reduction of stamp duty to rupees two per thousand on mortgage of title deeds, transfer of movable property, mortgage of property without possession, collateral security and bank guarantee (max. Rs.10,000/-).
3.      OTHER INCENTIVES
 
  • Exemption from Electricity duty for 10 years to all new units.

Exemption from VAT on direct purchase of raw material,    consumables, lubricants, parts and fuel other than diesel and petrol for use in manufacture of goods for export or for use in packing of        such goods.

Infrastructure & Industrial Development Department

Government of Uttar Pradesh, 4th Floor,

Shri Lal Bahadur Shashtri Bhawan,

Sarojini Naidu Marg,

Lucknow- 226 001. (U.P.)


Phone No:- 91-522-2238283/2239530

Fax No:- 91-522-2238255

Email :-idc.up@nic.in

Visitor Online: 85      Visited Till Date: 6481514     
All rights reserved by: Udyog Bandhu Best viewed in Mozilla-Firefox and Internet Explorer 7 and above Designed & developed by: Hollywood Multimedia Ltd.