Overview & Ineligibility: 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:

This policy shall be effective from the date of its notification (24.11.2016) and remain in force until the applicability of IPR-2015.

MSMEs which have commenced fixed capital investment prior to notification of this policy shall continue to be governed and assisted under Odisha MSMED Policy, 2009.

New MSME means a Micro, Small and Medium Enterprise whose fixed capital investment (including the one who has existing land) has commenced on or after the effective date and goes into production within 3 years from the date of starting of 1^st fixed capital investment.

Fixed Capital Investment means investment in land, building, plant, machinery and balancing equipment.

Expansion/ Modernization / Diversification of an enterprise is not eligible for benefits under this scheme.

Ineligible Enterprises:

1. All Service Enterprises.
2. Rice Hullers and Rice mills.
3. Flour mills (excluding Roller Flour Mills), Pulse Mills and Besan Mills.
4. All
   1. Processing of spices with investment in plant & machinery of less than Rs. 10 Lacs for industrially backward districts and less than Rs. 2 crore for other areas
   2. Units without Spice- mark or Ag- mark.
5. Confectionery with investment in plant and machinery with less than Rs. 10 Lacs for industrially backward districts and less than Rs. 2 crores for other areas.
6. Edible/Non-edible Vegetable Oil Mills having:
   1. Expeller with investment in plant & machinery less than Rs. 10 Lacs,
   2. Solvent Extraction with investment in plant & machinery less than Rs. 50 Lacs,
   3. Hydrogenation of Oil,
   4. Repacking of oil with filtering, coloring, deodorizing,
   5. Refining of Oil with investment in plant & machinery less than Rs. 5 crores.
7. Preparation of sweets and savories etc. excluding units using mechanized process with an investment in Plant & Machinery of more than Rs. 20 lacs in industrially backward districts and more than Rs. 50 Lacs in other districts.
8. Bread- making (excluding mechanized bakery).
9. Mixture, Bhujia and Chanachur preparation units.
10. Manufacture of ice candy.
11. Manufacture and processing of betel nuts.
12. Hatcheries, Piggeries, Rabbit or Broiler farming.
13. Standalone Sponge Iron Plants.
14. Iron and Steel Processors:
    1. Coiling and De-coiling of Sheets, Straightening and Cutting of sheets and Rods, Cutting of angle, Channels, Bars Blooms, Billets, Slabs etc,
    2. Iron and Steel scrap processing unit, and
    3. Integrated Rolling Mill.
15. Cracker-making units.
16. Tyre retreading units with investment in plant and machinery of less than Rs. 20 Lacs.
17. Stone crushing units.
18. Coal/ Coke screening, coal washing, Coal/Coke Briquetting.
19. Production of firewood and charcoal.
20. Painting and spray- painting units with investment in plant and machinery of less than Rs. 20 Lacs.
21. Units for physical mixing of fertilizers.
22. Brick- making units (except units making refractory bricks and those making bricks from fly ash, red mud and similar industrial waste not less than 25% as base material)
23. Manufacturing of tarpaulin out of canvas cloth with investment in plant and machinery of less than Rs. 20 Lacs.
24. Saw mill, sawing of timber.
25. Carpentry, joinery and wooden furniture making except when part of a Wood based cluster of at least 20 units.
26. Drilling rigs, Bore-wells and Tube- wells.
27. Units for mixing or blending/ packaging of tea.
28. Units for cutting raw tobacco and sprinkling jaggery for chewing purposes and Gudakhu manufacturing units.
29. Units for bottling of medicines.
30. Bookbinding/ Rubber stamp making/ Making notebooks, exercise notebooks and envelopes.
31. Distilled water units.
32. Tailoring (other than readymade garment manufacturing units).
33. Repacking/ stitching/ printing of woven sacks out of woven fabrics.
34. Pre-processing of oil seeds: decorticating, parching and frying.
35. Standalone Packaged drinking/ Mineral water units, Aerated water, soft drink (except the units manufacturing fruit pulp and/or juice out of it).
36. Bottling units or any activity in respect of IMFL or liquor of any kind.
37. Size reducing/ size separating units/ Grinding/ mixing units with investment in plant & machinery of less than 10 crores rupees except manufacturing of Cement with clinker.
38. Polythene less than 40 micron in thickness/ recycling of Plastic materials.
39. Thermal Power Plant.
40. Re-packaging Units.

Benefits of this scheme can be read at https://thesubsidysquad.com/odisha-msme-development-policy-2016/