Odisha budget: Industries and MSME sectors set for makeover

A new scheme - District Investment Promotion Agency (DIPA) has been with the budget with an allocation of Rs 15 crore.
For representational purposes. (Express IllustrationI)
For representational purposes. (Express IllustrationI)

BHUBANESWAR: The state government has proposed an outlay of Rs 1,438 crore for Industries and MSME sectors in 2023-24.An allocation of Rs 790 crore has been made for Industries which is more than 10 times of the budgetary provision of around Rs 70 crore made in 2018-19.

While the maximum Rs 280 crore has been provided under Cluster Development Fund and Rs 45 crore as financial assistance to down stream metal industries, Rs 200 crore has been provisioned for land bank. A new scheme - District Investment Promotion Agency (DIPA) has been with the budget with an allocation of Rs 15 crore.

The government has proposed Rs 20 crore for the development of mega textile park at Dhamra, Rs 20 crore for creating a common effluent treatment plant at Paradip for Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR), Rs 10 crore for mega aluminium park at Angul, Rs 55 crore for redevelopment of Kalinga studio and Rs 21 crore under development of utility corridor at Gopalpur.

The allocation for the MSME sector has been increased to Rs 648 crore during 2023-24 to create an atmosphere conducive to manufacturing and processing by facilitating ease of doing business and providing infrastructure support.

A new initiative - Chief Minister’s post-Covid revival package for MSMEs interest subvention on working capital loan has been proposed with an outlay of Rs 200 crore to reduce interest burden of working capital loan availed from banks by micro and small manufacturing enterprises including working capital for their export.

The Odisha procurement preference policy for MSEs will be replaced by a new policy which will make it mandatory for government entities to procure rate contract and exclusive list items from micro and small manufacturing units. A new scheme for infrastructure development under start-up policy has been proposed with provision of Rs 150 crore to set up a centralised incubator at O-Hub. 

An outlay of Rs 20 crore as funds for start-up Odisha, Rs 45 crore as subsidies under food processing and MSME policy, Rs 15 crore as incentive under IPR for financial assistance to MSME sector, Rs 80 crore for promotion of MSMEs and Rs 42 crore for promotion of Khadi and Village industries have also been provisioned.

A long-term budget pipeline for long gestation industrial projects has been planned with an indicative budget of Rs 3,500 crore for the next five years. This will be utilised for vital infrastructure such as MSME parks, IT towers, hostels for workers, effluent treatment plants, multi-modal logistics and warehousing.

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