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Msme Policy Final
Msme Policy Final
For the integrated development of entire state, including hill areas, for making
industrial activities more attractive and promoting year-wise employment,
herein after through consideration, the Governor is pleased to implement the
Micro, Small and Medium Enterprises Policy (70% Hill area and 30% plain
area)
Special Provision:
2.1 Preamble:
2.2 Vision:
2.3 Mission:
The micro, small and medium enterprises policy of the State Government
and the Government-assisted business environment and creative approach
will develop the micro, small and medium enterprises in the state.
Industrial activities will be encouraged by the proposed micro, small and
medium enterprise policy, by encouraging energy efficiency, advanced
technology as well as skill development. The state's micro, small and
medium enterprises will be able to achieve high standards of quality and
cost. By promoting cluster development and regional creativity, this
sector will be able to grow rapidly with additional finance and other
financial incentives.
Thus in the field of Micro, Small and Medium Enterprises, the growth
rate of 14-15% in the production can be achieved. The Micro, Small and
Medium Enterprises will be able to generate about 3 lakh additional jobs
directly and indirectly in the next 5 years in the state of Uttarakhand.
The following efforts will be made through the policy by the State
Government:
To quantify various assistance and subsidies, the state has been divided
into 4 categories as follows:
Petrol & Diesel pumping stations, Gas warehouse, Automobile repair &
service centre.
The following RED category industries will also be included in eligible
activities for financial incentives / grant assistance:
Milk Processing & Dairy products, Butter & Cheese.
Non-alcoholic/alcoholic beverage (Soft Drink) & bottling of
alcoholic/non-alcoholic products.
Fermentation/Bottling of Foreign Liquor such as Wine, Whisky,
Scotch, Beer, Vintnery, Winery and Brewery.
Vegetable oils including solvent extraction and refinery/hydrogenated
oils.
The benefit of rebate / concessions on river bed material based industries
(including stone crushers) will not be permissible in the entire state.
Explanation:
Explanation:-
In all categories of districts / areas, classified under the MSME policy, the
subsidy assistance from only one source will be permissible from the
investment contribution provided in the Government of India's Industrial
Development Scheme 2017 or the State Government-run MSME Policy
2015 and Special Incentive Assistance Scheme for Women
Entrepreneurs.
Under the schemes operated by various departments of the Government
of India and the State Government, capital subsidy/ investment promotion
assistance will be permissible from the same source for the same
component.
For Enterprise based on local resources such as: Natural Fibre Processing
Plant, Finishing and Dyeing Plant and other such enterprises that fully
utilize local resources (raw materials) in the processing / finishing of the
product, additional incentive assistance will be given in addition to 10
percent additional permissible quantity / limit of investment promotion
assistance in classified identified areas / districts.
Under the Micro, Small and Medium Enterprises Policy, 2015, the
maximum ceiling and quantum of reimbursement of goods and service
tax (GST), for the 5 years for a total net SGST tax liability for districts /
regions of Category A, hundred which is sold to the customer within the
state, will be 100% and the remaining time will be 90% and in the
districts / areas of Category B and B+, the total net SGST tax liability,
which is sold to the customer within the state, will be 100% and the
remaining time will be 75%.
Explanation: -
Under the Micro, Small and Medium Enterprises Policy, 2015 (as
amended, 2016), the goods and services tax act, 2017 (GST) does not
apply on the manufactured goods by such eligible, identified
manufacturing enterprises, and on the basis of which the value of the sale
of products / goods manufactured within the state is being imposed as
Value Added Tax (VAT), in accordance with the guidelines of Micro,
Small and Medium Enterprises Policy and on this subject, as may be
prescribed. Value-added tax will be reimbursed on the basis of eligibility
in the prescribed limit / quantity.
4 Category D 50 percent
Category A Category B*
100 KVA 100 percent for first 5 100 percent for first 5
years, thereafter 75% years, thereafter 60%
After the 1st July, 2017, the entire amount related to the tax liability on
the overlapping enterprises under the Goods and Services Tax (GST) Act
will be deposited in the treasury and no part will be kept with oneself. As
per filing return filing and after adjustment of input tax credit (ITC),
considering the total tax liability according to the provisions of the
scheme, Such SGST provided under paid goods and service tax will be
reimbursed, which will directly relate to the sale of the customer (B2C)
within the state. The goods / commodities produced by such
manufacturing enterprises on whom GST does not apply and on which
the sale of goods / goods manufactured within the state is being imposed
as VAT, the revised limit / amount will be reimbursed according to the
eligibility of the fixed limit / quantity, according to the MSME policy and
specific guidelines as prescribed.
The benefit of discounts / concessions on river bed material will not be
permissible.
On all service activities marked in Category-C and D, the benefit of the
financial incentives given to the service sector in the policy will be
permissible in the prescribed limit / quantity as per the classification of
the area. But in the areas of Category C & D, the benefit of financial
incentives payable in the tourist activities operated under the Municipal
Corporation / Municipal Council / Municipality area will not be
permissible.
Information
Technology /
1 50 per cent reimbursement
Information
assistance on Internet expenditure
Technology Supported
Services (IT/ITES)
Manufacturing of
Non-alcoholic/
alcoholic products
along with Distillery Reimbursement Assistance up to 75
and Brewery. percent of the total payable state
excise duty, additional excise duty,
Explanation: -
The units which have received registration under the MSME policy
before issuing the official memo regarding revision in the policy, and
under single window system, have received permission for purchase of
land for installation of bottling of alcoholic / non-alcoholic products and
fermentation / bottling of foreign liquors such as wine, whiskey, scotch,
beer, fruit and grain based winery and vintenery, brewery and after
obtaining the order of change in land use under Section 143, all
concerned departments have obtained the consent letter (consent to
establish, desired permission / no objection from the pollution control
board and on the basis of merit taken all effective steps for the
establishment of the enterprise, the discount / reimbursement provided in
the state excise duty, additional excise duty, bottling fees and other
charges, the benefits of other financial incentives will continue till date 31
March, 2025 as per the provision of the office dated March 22, 2016.
1) All the units benefitted under the MSME Policy will ensure that 70% of
their employment in the enterprise is available to the people of the state.
When accepting financial incentives for the said, it is mandatory to obtain
affidavit regarding the details of the employment of the concerned
enterprise.
2) Under the new provisions under the MSME policy, in relation to the limit
/ quantity / permissibility and process of reimbursement of the incentives
provided under the State Excise Policy, such as excise duty, bottling fees,
license fee and payable dues, detailed guidelines will be issued after
obtaining the consultation / consent of the Finance Department and
Excise Department, as processed by the Department of Micro, Small and
Medium Enterprises.
5. Infrastructural Support
5.2 Special industrial establishments will be set up for micro, small and
medium enterprises. In Integrated Industrial Estates of SIIDCUL, 25% of
the land will be reserved for Micro and Small Enterprises. The assistance
/ subsidy received through the Infrastructural Support Scheme (Ministry
of Micro, Small and Medium Enterprises, Government of India) will be
taken as the minimum cost of land to small / micro enterprise and the
State Government will also provide assistance / subsidy to the selected
Developer Institution / SIIDCUL for ensuring the availability of land at
lower cost to the entrepreneurs. Determination of the rates of land will be
done by The Director, Industries considering the actual cost of land on
the basis of the recommendation of the district level committee headed by
the District Magistrate, keeping in view the cost of development of the
infrastructure facilities, rates of prevailing land and industrial
development in the region. The activities of such service sector will also
be identified by the officer working as Director, Micro, Small and
Medium Enterprises Department, which can be allotted land in industrial
areas. Allotment of land in industrial estates / areas developed by the
Department of Micro, Small and Medium Enterprises will be done by
the District Authorized Committee formed in Rule 9 (B) of
Uttarakhand Enterprise Single Window Facilitation and License
Rules-2015.
A complete support system will be funded from this fund. For creating
DPR for cluster construction in micro, small and medium enterprises,
specialists, consultancy and advisory services related activities, the initial
financial assistance (and State’s share for various schemes of the
Government of India) will be arranged with this fund.
To provide space to the micro and small units, factory shades / flats will
be built in new and pre-established industrial estates, so that the valuable
time / resources of entrepreneurs could be invested in industrial
development rather than investing in the search of land & building.
Multi-storied entities will be created by the State Government for Micro,
Small and Medium Enterprises. Easy and minimum plot size, FSI will be
determined for micro, small and medium enterprises / flatted factories.
And in this case allocation of the primary facilities / sheds regarding lease
or rent will be done according to the guidelines issued from time to time.
All the facilities will be available to the entrepreneurs including
electricity, communication, so that they can do the production work by
just installing the machine-plant
(i) The system will provide the facility of online application on the same
portal, making the information technically strong for entrepreneurs. A
single application will be developed for the entrepreneurs to obtain all
necessary approvals / no objections and permissions easily.
6.3 Udyog Mitras: - Udyog Mitras’ at district and state level has been
constituted for continuous dialogue with entrepreneurs in the State of
Uttarakhand, resolving their problems and decision on policy matters.
Industry friend will be made a three-tier. At the district level, at least one
meeting per month will be organized under the chairmanship of the
District Magistrate; at the state level meeting at the level of the Chief
Secretary will be organized once in three months and at the level of the
Chief Minister at least one meeting annually will be organized. In the
district level industry friend, the District Magistrate will take support of
all the related departments, such as: Forest, Horticulture, Agriculture,
Animal Husbandry, Technical Education, Tourism etc. to work for the
development of micro and small scale industries for the district. For this,
proper cooperation of financial institutions and banks will be ensured.
Policy matters will be referred at the state level.
The micro, small and medium enterprises will provide assistance to the
National Level Institutions such as Indian Institute of Management,
Indian Institute of Technology for sponsoring special training activities
for their workers, up to 50 per cent of the cost of the training, maximum
of Rs. 10,000 / -. Initial consent will be obtained by the enterprises from
the Micro, Small and Medium Enterprises Directorate for sponsoring the
workers for the training.
On the lines of the Pradhan Mantri Rojgar Yojna, the State Government
will implement the Chief Minister's self-employment scheme. Under this
scheme, micro enterprises, in manufacturing area maximum of Rs. 05
lakh and in the trade and service area maximum Loans up to Rs.03 lakh
will be approved through banks. Margin Money Assistance will be given
as per the following table, under this scheme: -
Men/Minorities/Hill Area
Under the scheme, activities which have been identified by the Khadi and
Village Industries Commission (KVIC), Government of India as negative
list, will also be financed.
Projects above the said financial limit will be financed under the Prime
Minister's Employment Generation Program. Given the local needs of the
state, more activities will be included in this scheme.
Bankable projects will be created for the identified district wise and
development bocks-wise potential enterprises. The assistance of SIDBI,
NABARD and banks will also be taken for this. In the District Industry
Centre, the counseling and information rooms will be strengthened to
make the necessary information available to the entrepreneurs.
6.12 Pollution: -
Process of NOC for making consent and renewal of micro, small and
medium enterprises will be made smooth and effective by implementing
the Ministry of Forest and Environment order no. 16011/1/92-CPW dated
September 29, 1992. According to the provisions of this order, the
investigation process carried out in the order of any Micro, Small and
Medium Enterprises, which are related to Air Act 1980 (prevention and
control of pollution act 1980) and Water Act 1974 (prevention and
control of pollution act 1974), will be applicable only to heavy polluting
units (referred to as heavy industry in Ministry of Forest and
Environment, Government of India Order, dated September 29, 1992).
In different areas of the state, the pollution control board has decided to
give consent / authorization to the orange category industries for three
years and green category industries for a period of five years.
Accordingly in place of annual renewal, the above, arrangements will be
made for green and orange category industries in Doon Valley area.
6.13 Credit: -
Efforts will be made to protect the enterprises from the sickness. Efforts
will be made to revitalize sick units on time. On the suggestions of the
Empowered committee of the Reserve Bank of India, constituted for the
revival of sick units, the State Government will provide assistance for
diagnostic study of the sick units.
The State Government will set up Mini Tool room in the main industry
clusters, under the National Manufacturing Competitiveness Programme
of the Government of India. Apart from this, the state government will
assist the Mini Tool room projects brought by other industrial clusters
and industrial organizations to help 50% of the project cost (maximum
Rs. 02 crore), on the basis of demand based strategic location.
7.5 Where the same type of schemes are being operated by the MSME
Ministry of Government of India or any other ministry, there, the effort
will be made to get assistance under the schemes of the Government of
India first. If the assistance is not received from the Government of India,
the State Government will provide assistance in the schemes provided
under the policy.
7.6 Quality Certification: -
Micro, Small and Medium Enterprises will be given first, second and
third prizes in the following categories: -
Such units, which export more than 75 percent of their production, will be
provided additional interest component (Rs 02 lakh per annum) at the rate
of 2 percent. Exporter units will be given awards and prizes for special
contribution to exports.
9. Handloom-Handicraft and Khadi Village Industries
9.2 Uttarakhand Khadi and Village Industries Board is the work agency for
the progress of Khadi and Village Industries. The employment oriented
activities of the Board will be further expanded. Project cost limit under
personal interest subsidy scheme of Board has been raised by the State
Government from Rs 2 lakh to Rs. 05 lakhs. The State Government is
committed to encourage marketing of Khadi products through the
provision of giving exemption on the sale of khadi products from October
02 to 108 working days every year.
9.3 In the State the Khadi and Village Industries will be promoted through
different schemes of Khadi and Village Industries Commission.
9.8 In the state of Uttarakhand, there is an immense legacy of unique folk art
such as Aaipan, along with handicrafts products based on natural fibers
like ringal, rambans and wax, copper, wood etc. These handicrafts and
handlooms provide livelihood and economic dependence to many
families in Uttarakhand state.
9.10 It has been decided to establish 'Hari Ram Tamta Shilpa Unnayan
Sansthan' for the revival, development and up gradation of conventional
schemes. This institute will be developed as an excellent institution for
the up gradation of traditional schemes. Work will also be done on
conventional instrumental instruments such as Dhol-Damau, religious
items of daily use, as well as preservation and revival of the methods of
construction of symbols, memento, agricultural implements etc. used on
the occasion of religious events etc.
9.12 UHHDC will conduct exhibition and other marketing programs. Also,
UHHDC will be participating in various national and international
programs. In addition, efforts will be made to promote handloom,
handicrafts and khadi products. Appropriate schemes will be modified to
increase the marketing exposure through the participation of the weavers
and artisans of the state through participation in fairs and exhibitions.
Efforts will be made to establish the Himadri and Khadi Emporium with
the joint use of Khadi and UHHDC's marketing infrastructure. Urban
Haats will be established at appropriate places.
9.13 UHHDC will work to develop the craft manufacturing villages in the
form of ' Shilp Gram'. These Craft Villages will be developed as tourism
spots and will be record on tourist map.
9.14 The special design and product of the state will be registered under the
intellectual property rights as Geographical Indications. Documentation
of Various crafts will also be done.
10.3 Meeting of the Empowered Committee will be held in six months and
the meeting of the Coordination and Monitoring Committee will be held
quarterly. The above committees will be authorized for:
Yours faithfully,
Principal Secretary
M.S.M.E.
Endorsement Number: 184(1)/vii-2-15/146-MSME/2013, dated as above
By Order,
Under Secretary
M.S.M.E.