Odisha Govt Provides Financial Incentive To 278 MSME Units During Current FY

Bhubaneswar: The Odisha Government has extended various financial incentives to 278 Micro, Small and Medium Enterprises (MSMEs) during the current fiscal, thereby taking the total incentivized units to 639 from April 2019.

The amount of incentive has touched Rs 69.99 cr. This was revealed at the State Level Empowered Committee meeting chaired by Chief Secretary Asit Tripathy on virtual mode from Lokseba Bhawan last evening.

Participating in the meeting, Principal Secretary MSME Satyabrata Sahu presented the updates along with new proposals for the sanction of subsidy.

The Chief Secretary accorded in-principle approval for Rs 2.94 cr of Capital Investment (CI) subsidy in favour of two small scale enterprises. Tripathy directed to “follow a complete transparent and proactive practice in assessment and disbursal of different financial incentives to MSME units for attracting more and more young entrepreneurs into the sector”.

“MSMEs are prime movers of rural economy and they add to inclusive growth in rural community,” he added.
Tripathy further directed to “facilitate the process by providing proactive planning, technical and handholding support to the sector”.

The field level officers were asked to be in “constant touch with local entrepreneurs and instill confidence in them”.

The meeting considered the proposals of Kurpalu Solvent rice bran oil producing enterprise set up at Panikoili in Jajpur district with an investment of Rs 5.26 cr; and, Sri Ram Oil rice bran oil producing enterprise set up in Attabira panchayat of Bargarh district with an investment of around Rs 4.87 cr for sanction of capital investment ( CI) subsidy.

The aforementioned enterprises were sanctioned CI subsidy of around Rs 1.73 cr and Rs 1.21 cr respectively.
Director Industries Reghu G. appraised, “with this sanction the total amount of financial incentives sanctioned during the current year has crossed 25.47 cr extended to 278 units”.

“Mainly three types of direct financial incentives viz. capital investment subsidy (at two slabs of 25% and 33%), interest subvention @ of 5% per year for five years and VAT reimbursement for five years are provided to the MSMEs under different policies,” Principal Secretary MS& ME Sahu said.

Besides, the Government departments and PSUs have been directed to procure at least 20% of their requirement from local MSMEs.

In the year 2019-20 a total amount of around Rs 34.52 cr were provided as one or other incentive to 361 units.
By November end of the current fiscal year, Rs 25.47 cr were provided as incentives to 278 units.

With this, a total number of 639 were incentivized with a total amount of Rs 69.99 cr from April 2019 till the end of November 2020.

These units are spread over the sectors like fly ash brick making, paper egg trays, corrugated papers, plastic molded products, milk and milk products, bakery, paper cup & plates, cotton ginning plant, shrimp processing, rice mills, cement products cashew kernels, rice ban oil, spices, pickles, noodles, PVC pipes, and other miscellaneous industries. Tripathy directed to promote more and more food processing units in diverse sectors.

Development Commissioner Suresh Chandra Mohapatra, Principal Secretary Finance Ashok Kumar Meena, Principal Secretary ME&ME Satyabrata Sahu, Director Industries Reghu G., Addl Director Industries Saroj Hotta along with senior officers of concerned departments participated in the discussions.