Benefits of Odisha MSME Development Policy, 2016

Odisha government has issued Odisha MSME Development Policy 2016 with objectives of encouraging new manufacturing capacity, providing a conductive eco system for promotion and growth of MSMEs, providing opportunities to local entrepreneurial talent etc.

Overview and eligibility for this policy is discussed in a separate article. In this article, we are going to discuss the benefits that this policy is offering.

Capital Investment Subsidy

Note:

1. For the Enterprises set up by SC / ST / Differently Abled / Women / Technical Degree or Diploma holders, their stake in equity participation / shareholding shall be 51% or more individually or jointly.
2. Industrially Backward Districts including KBK districts: Kalahandi, Nuapada, Bolangir, Subamapur, Koraput, Malkangiri, Rayagada, Nabarangapur, Kandhamal, Gajapati & Mayurbhanj.
3. Cost of 2^nd hand plant and machinery shall not be considered.
4. Plant and machinery acquired after the date of commencement of production shall not be considered.
5. In calculating the value of plant and machinery, the following shall be excluded:
   1. The cost of equipment such as tools, jigs, dies, moulds and spare parts for maintenance and the cost of consumable stores.
   2. Cost of installation of plant & machinery
   3. The cost of Research & Development equipment and Pollution control equipment
   4. Cost of generation sets, extra transformer etc installed.
   5. The bank charges and service charged paid
   6. The cost involved in procurement or installation of cables, wiring, bus bars, electrical control panels (not those mounted on individual machines), oil, circuit breakers which are necessarily to be used for providing electric power to the plant & machinery/ safety measure
   7. The cost of gas producer plants
   8. Transportation charges (excluding taxes) for indigenous machinery from the place of manufacturing to the site of factory
   9. Charges paid for technical know how for erection of plant & machinery
   10. Cost of such storage tanks which store raw materials, finished products only and are not linked with the manufacturing process
   11. The cost of fire fighting equipment
   12. Cost of cylinders for supply of gas

Seed Capital Assistance

Note:

1. Seed Capital: It refers to the initial capital needed to get the enterprise started. Seed capital assistance is meant to reduce the burden of promoter’s contribution / to meet a part of his margin money required for availing institutional finance.
2. 1^st Generation Entrepreneur: are those entrepreneurs who do not possess any entrepreneurial background i.e. they do not inherit the enterprise passing from one generation to another. They start an enterprise by means of their own entrepreneurial ability and skills.
3. Women, SC, ST, Differently abled entrepreneurs: Women SC / ST / Differently abled persons whose stake in equity participation / shareholding shall be 51% or more individually or jointly in the enterprise.
4. Industrially Backward Districts including KBK districts: Kalahandi, Nuapada, Bolangir, Subamapur, Koraput, Malkangiri, Rayagada, Nabarangapur, Kandhamal, Gajapati & Mayurbhanj.

Project Report Subsidy

Note:

Project Cost means the total cost which includes design fees, material costs, construction costs, permit feet land, furnishings, plant & machinery, financing and all other costs that are incurred for completion of the project and appraised by the financing bank based on feasibility and viability of the project.

Reimbursement of Audit Cost for Water Conservation

Note:

1. The claim for reimbursement of Audit cost for Water Conservation shall be considered on successful implementation of water Audit result only if there has been at least 25% reduction in the water consumption of average monthly consumption of previous 12 months before conducting of audit.
2. Reimbursement of Audit cost for Water Conservation shall include assessment / audit fee, calibration & technical consultancy charges, certificate on successful implementation of audit report, etc. and not include / cover cost of change over assets like acquisition of water saving equipment, new installations, remodeling, up-gradation of existing, replacement of obsolete machineries etc.

Assistance for raising Capital through SME Exchange

Trade Mark Assistance

Note:

Expenditure include fees paid to Registry of Trademark in India on the basis of number of classes applied and consultancy charges paid to professionals towards trademark search, trademark application filing, trademark examination- response, trademark registration and not include fees made for renewal of registration of trade mark/ restoration of trade mark.

Reimbursement of Training Expenditure

Reimbursement of 50% of the cost of skill up-gradation and training of local manpower (domicile of the state of Odisha) limited to Rs. 3000 per person (Rs. 4000 for woman) with maximum persons as:

Micro Enterprise: 10 persons

Small & Medium Enterprise: 20 persons

Note:

1. The Skill up-gradation and training should have been imparted in the Institute accredited by All India Council of Technical Education/ Skill Development & Technical Education Department / Odisha Skill Development Authority. Directorate of Technical Education & Training, Odisha and Odisha Skill Development Authority shall share the list of such accredited / empaneled Institutions along with brief specific skill / training being imparted (District wise) to the respective RIC / DIC.
2. Training should be done for domicile of the State of Odisha and regular employees on the payroll of MSME.

Apart from this, Incentive for ZED Certification and Award to MSME/ Entrepreneurs is also given in the policy.