Bhubaneswar: Chief Minister Naveen Patnaik has approved a package of Rs 289.42 crore for the benefit of MSMEs in order to combat the pandemic situation in the state.
The package includes a number of assistance measures such as interest subvention, top-up subsidy, reimbursement of state GST and waiver of annual institutional maintenance charges.
The package is aimed at benefiting a range of entrepreneurs, mostly women and weaker sections of society, in the MSME sector of the state to recover from the unexpected challenges by the COVID-19 pandemic.
As per the provision, the government will provide an interest subvention for the MSMEs under emergency credit line guarantee scheme with a one-year moratorium.
A sum of Rs 108.29 crore is being released with a focus to cover 40 per cent of eligible women-run MSMEs.
Under Prime Minister Employment Generation Programme (PMEGP) for the 2020-21 financial year, the top-up subsidy to weaker sections is 5 per cent as promoters contribution as per the prescribed norm. An amount of Rs 27 crore has been provisioned to meet the requirement.
Food processing units functioning under PM Formalization of Micro Food Processing Enterprises (PMFME) will be given 15% extra top-up subsidy to cover around 1,000 unit for the current financial year. Rs 10 crore will be given towards top-up subsidy under the scheme.
COVID-19 assistance package launched by Panchayati Raj and Drinking Water Department is another assistance provision that will bring relief to Nano and Micro Enterprises. Currently, assistance to the tune of Rs 100 crore will be made available through Women SHG members.
As many as 175 enterprises will be eligible for reimbursement of state GST for the period from July 1, 2017, to March 31, 2020. Under this proposal, a sum of Rs 38.30 crore will be disbursed.
The waiver of annual institutional maintenance charge payable by MSMEs to IDCO which comes around an amount of Rs 5.83 crore in respect of 5000 MSMEs in various Industrial Estates will be borne by the IDCO.
The entire package covers Rs 289.42 crore for the benefit of MSMEs in order to combat the pandemic related loss, a government notification said.