Promotion of MSME in NER and Sikkim

 

MSME in India UPSC: Relevance

• GS 3: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

 

Promotion of MSME in India: Context

• Recently, Ministry of Micro, Small & Medium Enterprises has approved New Guidelines of Central Sector Scheme Promotion of MSMEs in North Eastern Region and Sikkim.

 

Promotion of MSME in NER and Sikkim: Key points

• The scheme will be implemented during 15th Finance Commission Cycle (2021-22 to 2025-26).
• The Scheme is envisaged to provide financial support for enhancing the productivity and competitiveness as well as capacity building of Micro, Small and Medium Enterprises (MSMEs) in the NER and Sikkim.

 

 

Promotion of MSME in NER and Sikkim: Key guidelines

Setting up of new and modernization of existing Mini Technology Centres

• The Scheme envisages financial assistance to State Governments for setting up new and modernization of existing Mini Technology Centres.
• Priority areas: Projects for creation of common facilities to supplement manufacturing, testing, packaging, R&D, product and process innovations and training for natural resources such as fruits, spices, agriculture, forestry, sericulture and bamboo etc. available in NER and Sikkim.
• Financial assistance: The financial assistance of Central Government will be 90%. The projects with total project cost more than Rs. 15.00 crore, will also be considered but maximum assistance shall be limited to Rs. 13.50 crore.

 

 

Development of new and existing Industrial Estates

• Central Government financial assistance will be provided for development of new and existing Industrial Estates, Flatted Factory Complexes.
• Financial assistance: The financial assistance of Government will be 90%. The maximum project cost for calculation of assistance shall be Rs.15.00 Crore for development of new industrial estate whereas Rs.10.00 crore for development of existing Industrial Estate

 

Development of Tourism Sector

• The projects for creation of common services such as kitchen, bakery, laundry & dry cleaning, refrigeration and cold storage, IT infra, potable water, display centre for local products, centre for cultural activities etc. in a cluster of home stays may be considered under the scheme.
• There has to be linkages of projects with local MSEs. The financial assistance of Central Government will be 90% for projects with maximum assistance limited to Rs. 4.50 crore.

 

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