New guidelines approved by GoI for promotion of MSMEs

New guidelines approved by GoI for promotion of MSMEs
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NEW DELHI: The Government of India has approved new guidelines for the implementation of the central sector scheme “Promotion of MSMEs in the North Eastern Region and Sikkim”. The scheme aims to improve the productivity and capacity building of MSMEs in the region.

“Promotion of MSMEs in the North Eastern Region and Sikkim” is a five-year scheme, which will be implemented between 2021-22 to 2025-26. The scheme also aims to build new centres and upgrade the already existing Mini Technology Centres in the region.

Under the scheme, common facility centres will be built to give impetus to research and development, manufacturing, testing, packaging, product and innovation, and training for other agricultural and horticulture products such as fruits, spices, bamboo and forestry across the region.

According to a PIB report, the central government will provide 90 per cent of the funding under the scheme. Projects with an estimated cost of up to Rs 15 crores will be evaluated, but the assistance will be provided for up to Rs 13.50 crores only.

Additionally, the central government will also provide financial assistance to the state governments for the establishment of new and for the improvement of existing Industrial Estates and Flatted Factory Complexes.

The report by PIB further states, “The financial assistance of central government will be 90 oer cent. The maximum project cost for calculation of assistance shall be Rs 15 Crore for development of new industrial estate, whereas Rs 10 crores will be provided for development of existing Industrial Estate. The projects with total project cost more than Rs 10/15 crore, will also be considered but maximum assistance shall be limited to Rs. 9/13.50 crores, which totally depends on the concerned projects.”

The projects for the establishment of the common services like bakery, kitchen services, refrigeration and cold storage, and other information technology infrastructure could also be considered under this scheme. However, the projects must have a linkage with MSMEs. The financial assistance from the central government for these projects will be limited to 90 per cent of the project cost or Rs 4.50 crores, whichever is lower.

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