In order to revive the sick micro and small enterprises, the state government of Rajasthan has launched a special scheme called The Rajasthan Sick Micro & Small Enterprises (Revival and Rehabilitation) Scheme, 2015. SMEs play a pivotal role in economic development of any country. Not just that, this sector also helps evolve entrepreneurial ideas and innovations. However factors like limitation of enough funds, poor management/administration of an enterprise, lack of good marketing and professionalism make this sector vulnerable and prone towards sickness which thus hinders its’ economic growth as well as employment generation. So, here comes the need to revive potentially viable sick SMEs in order to use the created assets for productive purposes.
Duration of the scheme:
The scheme shall be applicable till 31st March, 2019.
Applicability of the scheme:
- It is applicable to any SME in the manufacturing sector
- However, it is applicable to only those SME not covered under the provisions of the Sick Industrial Companies (Special Provision) Act, 1985
- The SME in order to get benefits under this scheme has to be identified as sick unit by the principal loaning bank and found viable / potentially viable for revival
- SMEs already taken up by the bank for its revival before or during the operative period of RIPS (Rajasthan Investment Promotion Scheme)-2014 shall also be eligible
- SMEs sold during the operational period of that scheme to a new management by RIICO/RFC/Central Financial Institutions/Banks shall also be eligible under this scheme
RIICO-Rajasthan Industrial Development and Investment Corporation
RFC-Rajasthan Financial Corporation
Relief in dues of Govt. agencies:
Commercial Taxes (VAT and other taxes)-
If SLSC (State Level Screening Committee) approves then an enterprise may be allowed to pay outstanding demand of Commercial Taxes Department in maximum 36 installments. However, if the committee is satisfied, then it may allow for renunciation of interest or penalty in case the amount of outstanding tax is deposited by the enterprise in one go within the said time frame.
An enterprise eligible under the scheme shall be granted reliefs by the Electricity Distribution Company as follows->
- In the case a connection is discontinued/disconnected due to non-payment of electricity bills and if the security deposit has already been adjusted against the outstanding amount of bills then fresh security may be accepted in 6 monthly installments.
- If a connection is lying disconnected, it shall be re-connected after recovering of all the charges as per provision applicable for new applicant. However, in case where electric line/plant has been removed, units have to bear the expenditure as per norms.
- The interest payable on dues of the concerned Electricity Distribution Company for closure period of the enterprise will be waived up to maximum amount of ₹ 25,000/-.
- Penal charges (including LPS/DPS) imposed by the concerned Electricity Distribution Company will be waived up to a maximum amount of ₹ 25,000/-.
Fiscal incentives under the scheme:
An eligible sick SME shall be granted the following benefits-
- A sick enterprise shall continue to get benefits from any incentives sanctioned earlier under any scheme of the state government till the scheme gets expired.
- A sick enterprise shall be eligible for all fiscal incentives (excluding Stamp Duty exemption) under RIPS-2014.
- A sick enterprise shall be exempted 100% from paying Stamp Duty if it gets transfer to a new management only.
Read: Rajasthan Investment Promotion Scheme (2014-19): What is there for MSME?
Read: Businesses Can Save Up To 50% of VAT and CST Taxes in Rajasthan
How to avail benefits under this scheme?
Submit your form to the Member Secretary of SLSC. To get the forms, CLICK HERE
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