Micro, Small and Medium Enterprises (MSME) play a pivotal role in economic development of any country. Not just that, this sector also acts as a very base for entrepreneurial ideas and innovations. MSME sector is indeed justified as to lay as a backbone of the industrial sector in terms of numbers and provide the largest employment base after agriculture. India gives huge priority to this sector and Rajasthan being the largest state in the country provides an equal focus to this sector. In the year 2015, the state unveiled its MSME Policy with the agenda to encourage entrepreneurship and setting up of MSMEs and to create an investment friendly industrial state.
Ease of doing business- one of the main highlights of this policy is that the state has given extreme importance to the process of doing business to make it easy. So, all the works therefore will be done online in order to make the process of certification, to application for any official purpose, easier.
All fiscal incentives and benefits applicable to MSME sector shall be applicable as per the provisions of RIPS (Rajasthan Investment Promotion Scheme) – 2014.
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
Infrastructure development and Land for Industry-
The state government plans to establish land bank for industrial purposes by identifying suitable government/private land and the process shall be made online.
- RIICO Industrial Area- RIICO (Rajasthan State Industrial Development and Investment Corporation) allots plots for industries in the industrial area developed by it. In the new areas to be developed by RIICO, 30% of the plot will be reserved for MSMEs.
- Private Sector Industrial Parks- The state plans to encourage private sector investment for setting up industrial parks and clusters.
Development of MSME clusters-
The State Govt. plans to encourage cluster development approach as an effective strategy to develop MSMEs because it is cost-effective, inclusive, sustainable and competitive. Sectors like handicrafts, handloom and khadi, gems and jewelry, agro-based/ food processing, leather and leather products, textiles and apparels, stone, ceramics and glass, pottery, light engineering and auto components, ESDM, IT/ ITeS etc. shall be taken up for cluster development, especially for the wholesome development of artisans, craftsmen, weavers and micro enterprises.
Credit Asses and Support-
- MSMEs those are seeking credit from financial institutions shall be provided with required information as well as help in documentation. Rajasthan Financial Corporation (RFC), a State Government undertaking, shall provide credit to MSMEs on easier terms under its loan schemes.
- Entrepreneurs (up to the age of 45 years) can avail up to a maximum of ₹ 5 crore as credit to start their businesses up. For credit of ₹ 90 lakh, a 6% interest rate is available under the Yuva Udyamita Protsahan Yojna of RFC.
- Interest subsidies shall be provided to unemployed youth/ women//educated and unemployed women/SC/ST/Specially-abled People for setting up new micro enterprises under the Bhamashah Employment Generation Scheme of 2015.
- For women, SC/ST and Specially-abled entrepreneurs, the service processing fees charged shall be reimbursed on sanction of loan, subject to a maximum amount of ₹ 50,000/-.
Support to Small and Medium Enterprises (SMEs) for raising capital-
In a bid to encourage SMEs to raise funds through this route, assistance will be provided up to 10% of the expenditure acquired, with a maximum of ₹ 2.5 lakh one time after successful raising equity.
Support for Start-ups-
- In a bid to support entrepreneurs and startups, plug and play facilities will be encouraged to be set, especially in IT, Garment-making, Electronics and ESDM sectors to help them easy entry and exit facilities for immediately starting their business venture.
- Also, along with this, rapid incubation centers shall be set up in each district of the state to support unemployed youth and other entrepreneurs to set up micro and small enterprises.
Apart from this, Marketing Support, Support for Quality Improvement, Support for Environmental Conservation, Rehabilitating Sick Units are also given priority in this policy.
For more information, CLICK HERE