The Odisha Government has increased the Capital Investment Subsidy (CIS) to Rs 2 crore from the previous upper limit of Rs 1 crore for new and existing MSEs who are expanding, modernizing, and diversifying (E/M/D) their business by making at least 25% of their capital investment in plant and machinery.
The Naveen Patnaik-led cabinet gave its approval to the new MSME Development Policy. The current Odisha MSME Development Policy, 2016, will be replaced by it.
“Policy outlines incremental steps to promote the growth of MSMEs in boosting employment & contribution of the sector to State’s GDP,” observed Odisha CM Naveen Patnaik in a tweet.
The CIS upper ceiling has risen from Rs. 1.25 crores to Rs. 2.50 crores for new and existing businesses owned by SC (Scheduled Caste), ST (Scheduled Tribe), people with disabilities, women, and technical (Degree/Diploma) entrepreneurs.
The programme provides an extra CIS of 5% for eight important industries in industrially underdeveloped regions if plant and machinery investments total more than Rs 20 lakhs over and above the maximum allowed for each category. The primary sectors include those automobiles and auto components, plastics and polymers, steel and stainless steel, defence equipment, aluminium, pharmaceuticals, medical equipment, and apparel and textiles. These industries are concentrated in Kalahandi, Nuapada, Bolangir, Subarnpur, Koraput, Nabarangpur, Rayagada, Malkangiri, Kandhamal, Gajapati, and Mayurbhanj, which are designated IDCO (Industrial Infrastructure.
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For the first time, the policy allows for new and existing anchor firms that are engaged in E/M/D to be eligible for CIS at a maximum of Rs 4 crores and 30% of the investment made in equipment and machinery.
Additionally, it provided an extra CIS at 5% of capital investment in technical civil works and plant and machinery for new and existing businesses implementing non-polluting measures, with a ceiling of Rs 25 lakhs, in order to encourage sustainability and green industries.
The state has announced a technology purchase subsidy of 50% of the amount spent on the acquisition of technology, up to a maximum of Rs 20 lakh, in an effort to encourage MSEs to embrace new technology.
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Additionally, it would grant MSMEs an electricity duty exemption up to a contract demand of 750 KVA for a five-year term. Other benefits include 100% subsidy on patent registration costs for companies doing E/M/D, with a ceiling of Rs 5 lakhs, and reimbursement of 100% of the costs paid in registering a trademark, up to a maximum of Rs 3 lakhs.