Uttar Pradesh Chief Minister Yogi Adityanath | Photo: PTI
government on Tuesday announced sops for promoting Micro, Small and Medium Enterprises (MSME), especially those owned by the minorities and other weaker sections of society.
The MSMEs will be provided financial incentives under the government’s flagship One District, One Product (ODOP) scheme that aims to foster the traditional industries.
The decisions, taken at the state cabinet meeting here this morning, have come a month after President Ram Nath Kovind had inaugurated the first ODOP Summit here on August 10. He said UP had the potential to become a trillion dollar economy in future since it was abundant with socioeconomic resources of manpower, handicraft and traditional industries. Earlier, Prime Minister Narendra Modi had also exhorted UP to compete with Maharashtra in achieving the feat.
Under the scheme, the state would provide almost 25% subsidy on project cost to new enterprises being set up under ODOP. While, 25% subsidy or Rs 625,000, whichever is lower, would be given to projects of up to Rs 2.5 million, the corresponding figure for projects costing between Rs 2.5 million and Rs 5 million is 20% or Rs 625,000, whichever is higher.
The subsidy would first be given as margin money through commercial banks, however, it would be later converted to grant on successful running of the enterprise for two years.
Meanwhile, for projects costing between Rs 5 million and Rs 1.5 billion, the margin money up to 15% or Rs one million, whichever is higher, would be provided. For projects, costing more than Rs 1.5 billion, the government would give margin money/grant of 10% of Rs 2 million, whichever is lower.
While, entrepreneurs belonging to the general category would be required to contribute 10% of the project cost through own resources, the mandate has been relaxed to 5% for the candidates belonging to the scheduled caste, scheduled tribe, other backward castes, minorities, women and physically challenged.
The beneficiaries would be selected by a task force at the district level comprising the representatives of local administration, bankers, industries department etc.
At ODOP Summit, the state had exchanged Memorandum of Understanding (MoU) with Amazon, Wipro GE Healthcare, Quality Control of India (QCI), National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for helping the state MSME
sector through skill training, capital, marketing support and other institutional aids. Loans worth over Rs 10 billion were distributed to 4,095 entrepreneurs.
Adityanath had said UP wanted to replicate the success of Japan and Thailand in promoting traditional industries for socioeconomic growth through ODOP, which seeks to bolster the traditional crafts in all the 75 districts of UP. He said the state as targetting to help 2.5 million youth in getting jobs and self employment over the next 5 years with ODOP, which is aimed at projecting ‘Brand UP’ globally.