CM Announces Rs.289.42 Crore Package for MSMEs to Combat Pandemic Challenge

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.

It 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. In ECLGS 170000 MSME units will reap the benefit of interest subvention.

As per the provision, the Government will provide an interest subvention for the MSMEs under Emergency credit line Guarantee scheme with one year moratorium.

A sum of Rs. 108.29 Crore is being released with a focus to cover 40 percent of eligible women run MSMEs.
Under the PMEGP for the 2020-21 Financial Year, the Top-up subsidy to weaker sections is 5 percent as promoters contribution as per the prescribed norm. An amount of Rs.27 Crores has been provisioned to meet the requirement. This will help in a big way to weaker section (SC/ST/OBC/Minority Community/Women/Physically challenged/Ex-Servicemen) in facing the pandemic crisis.
For the food processing units functioning under PMFME, a Central Sponsored Scheme, on 60:40 basis, will be given 15% extra Top-up subsidy to cover around 1000 unit for the current financial year. Rs10 crores will be given towards top up subsidy under the scheme .
COVID-19 Assistance package (CAP) 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 per the recently amended IPR approved by the State Cabinet, 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 Estate will be borne by the IDCO.

These entire packages cover Rs.289.42 Crores for the benefit of MSMEs in order to combat the pandemic related loss.