Bengal rolls out incentives for SMEs
Bengal government today announced an incentive scheme for Micro and Small Scale Enterprises to encourage growth of small enterprises in the state. The West Bengal Incentive Scheme 2007 for Micro and Small Scale Enterprises will be applicable to micro and small enterprises in the manufacturing sector set up on or after April 2007.
The scheme will also include expansion projects of existing units. The incentives include state capital investment subsidy ranging from 17 per cent to 35 per cent and interest subsidies ranging from 25 per cent to 30 per cent. The scheme also includes waiver of electricity duty for a period of 5 years from the date of commercial production and 30 per cent reimbursement of electricity charges for a period of 5 years from the date of commercial production. The scheme also includes 75 per cent reimbursement of expenditure for modernisation of unit with a maximum cap of Rs 5 lakhs.
The improved package includes subsidy of 50 per cent of expenditure incurred for obtaining patent registration with a maximum cap of Rs 7.5 lakhs. The schemes doles out 10 per cent additional incentive for all categories of subsidies,excepting those of waiver of electricity duty and patent registration.
Announcing the scheme at a CII seminar on micro and small scale sector chief minister, Buddhadeb Bhattacharjee said the micro and small scale sector is important to address the problem of jobless growth in the country. "The incentives are required to help the SME sector grow in the globalised environment. The incentives will help the SMEs train people, upgrade technology and help in flow of credit," Bhattacharjee said.
Bengal already has two SME clusters at Baruipur (surgical equipment) and Shantiniketan(leather goods). G D Gautama, principal secretary, small scale enterprises and textiles, Bengal said the state has already got approval for 20 more clusters in different areas of the state. The centre will provide 75 per cent of the funds required, while the state will give 20 percent and the industry association promoting the cluster another 5 per cent.
The total envisaged investment in 20 clusters stood at about Rs 80 crore. Bengal has identified 91 more such clusters in different parts of the state and proposals will be submitted to the Centre shortly.
Source: Business Standard
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