Gujarat govt announces Rs 1,000 cr package for MSMEs

23 Feb '17

2 min read

In its state budget for 2017-18, the Gujarat government has announced a special package of Rs 1,000 crore for the micro, small and medium enterprises (MSMEs) sector. This decision comes close on the heels of the Union Budget 2017-18 announcing reducing the income tax for smaller companies with annual turnover up to Rs 50 crore to 25 per cent.

The special package, announced by deputy chief minister Nitin Patel, who also holds the finance portfolio, offers enhanced assistance to MSMEs for market development, technology acquisition, raising finance through SME exchanges, additional assistance for power connections and capital and rental charges.

Gujarat is home to more than 3 lakh MSME units, with many of them in the textile and garment sector. The special package is likely to give a major breather to these units, especially for the ones that suffered losses due to cash crunch in the last two months of 2016, following demonetisation of high value currency notes.

The state budget also includes a special package for scheduled caste and scheduled tribe members under the Bharat Ratna Dr Bahasaheb Ambedkar Udyog Yojana. The package includes additional support for entrepreneurship training with mentorship and sustenance allowances, assistance for new power connection and support for industrial infrastructure. (RKS)

Fibre2Fashion News Desk – India

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