Combating Covid: Odisha CM approves Rs 289.42 cr package for MSME sector

Bhubaneswar: Chief Minister Naveen Patnaik on Tuesday approved a package of Rs.289.42 cr for the benefit of MSMEs in a bid to combat Covid pandemic situation in the state.

A number of assistance measures such as interest subvention, top-up subsidy, reimbursement of State GST and waiver of annual institutional maintenance charges are included in the package.

According to reports, this package will benefit 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.

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 cr 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 cr 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 cr will be given towards top up subsidy under the scheme.

The 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 cr 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 cr will be disbursed.

The waiver of annual institutional maintenance charge payable by MSMEs to IDCO which comes around an amount of Rs. 5.83 cr in respect of 5000 MSMEs in various Industrial Estate. The entire package will cover Rs.289.42 cr for the benefit of MSMEs in order to combat the pandemic related loss.