Kalraj Mishra launches Rajasthan's new MSME policy

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SME Times News Bureau | 21 Nov, 2015
Rajasthan on Friday launched a new policy for micro, small and medium enterprises (MSMEs) to promote the sector.

The 'Rajathan MSME Policy 2015' was unveiled by Union MSME Minister Kalraj Mishra along with Rajasthan Chief Minister Vasundhara Raje on the concluding day of the two-day 'Resurgent Rajasthan Partnership Summit 2015' in Jaipur.

Addressing the summit, Mishra extended his ministry's full support to the Rajasthan government in promoting the MSMEs and said the government planned to set up an "incubation centre" in each of the 33 districts of the state.

"Under the incubation centres, there is hands-on training on small machinery for people."

Mishra appreciated the investment commitments amounting to about Rs 3.30 lakh crore that were made during the summit, but sounded a note a caution.

"We have to see where the investment goes. We need to see whether the investment would only be made in big industries," he said, adding that "big industrialists invest in big businesses" that generated few jobs, while the MSMEs sector, which creates "huge employment", was deprived of funds.

The minister asked the banks to focus on lending to the MSMEs and said the central government had reduced the cumbersome process of registration of small business.

"Now a registration number can be acquired within 3 minutes by filling up a 20-point-form," he said.

Chief Minister Raje said she was certain that the new policy would prove to be a turnaround for the small-scale industry which was close to her heart.

"We have to hold hand so that the micro enterprises become small, small become medium, and medium become big."

About 90 percent of the industry in Rajasthan belonged to the categorty of MSMEs, she said, adding that the sector needed support in technology transfer and upgrade, easy and timely availability of loans, and protection from overseas competition.

She also called for funding support for the MSMEs, saying 82 percent of lending by banks went to large industries, while 18 percent was for small industries.

Rajathan MSME Policy 2015 focuses on provision of loans, rehabilitation of sick units, support in quality improvement, ease of doing business, fiscal benefits and incentives, development of MSME clusters, and marketing support.