f3gh54ehyx16o1j|237
f3gh54ehyx|2000CF7Dtbl_Menu|ContentDetails
f3gh54ehyx|2000CF7Dtbl_Menu|ContentDetails
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.
2xa6rfxhin|2000CF7D|Udyogbandhu|tbl_Menu|ContentDetails