Bhubaneswar: The Odisha government on Friday decided to organise camps in industrial estates to spread awareness among MSME units about the economic package announced by the Centre for the sector.
The decision was taken at a high-level meeting chaired by Chief Secretary A K Tripathy where it was observed that the Micro, Small and Medium Enterprises (MSME) sector employs the highest number of people in the state after agriculture.
Therefore, its revival is most essential as the MSME sector is severely hit by the COVID-19 pandemic, Tripathy said.
The chief secretary directed officials to organise state and district-level camps for startups and other industrial units to make them aware of the provisions of the Centre's package.
He said the officials concerned must extend proactive support to the affected MSMEs to avail the central government's package.
The proposal for reducing the timeline for statutory clearances, certificates for industries, and establishment of workers hostel in industrial estates were discussed in the meeting, said MSME secretary Hemant Sharma.
There are over 50,158 MSME units in the state with an investment of over Rs 2,324.46 crore, according to Economic Survey 2018-19.
These units employ around 1,47,000 persons.
Finance Minister Nirmala Sitharaman on Wednesday announced a booster dose for MSMEs including Rs 3 lakh crore collateral-free automatic loan for businesses. This will benefit 45 lakh small businesses, she said detailing parts of the Rs 20 lakh crore economic stimulus package. The loan will have 4-year tenure and will have a 12-month moratorium, she said. Also, Rs 20,000 crore subordinated debt will be provided for stressed MSMEs, she said adding this would benefit 2 lakh such businesses.
The Finance Minister said a fund of funds for MSME is being created, which will infuse Rs 50,000 crore equity in MSMEs with growth potentials. Also, MSME definition has been changed to allow units with investment up to Rs 1 crore to be called micro-units in place of Rs 25 lakh now. Also units with turnover up to Rs 5 crore to be called micro-units, she said, adding a turnover based criteria is being introduced to define small businesses.
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(With Agency Inputs)