HYDERABAD: Unveiling Telangana’s first-ever policy for Micro, Small and Medium Enterprises (MSMEs), the state government on Wednesday said that it would spend Rs 4,000 crore over the next five years as incentives to achieve a target of establishing 25,000 new MSMEs.
Launching the policy here, Chief Minister A Revanth Reddy said that there was a need to promote MSMEs to generate employment opportunities in the state.
To achieve this, the policy will offer incentives to women, SCs and STs for establishing MSMEs.
The policy identifies six core areas to spur MSME growth — access to land, funds, raw material, labour, technology and markets.
As per policy, the government of Telangana will facilitate access to land via construction of dedicated industrial infrastructure for MSMEs and making land available at affordable prices.
10 industrial parks planned between ORR and RRR
The government plans to reserve 20% of each industrial park for MSMEs. Additionally, the state government will construct 10 industrial parks between the Outer Ring Road and Regional Ring Road, of which five will be MSME parks. As per the policy, the government will increase benefits under the capital investment subsidy for MSMEs. The government will provide 25% subsidy up to Rs 30 lakh under T- IDEA scheme.
For easy access to raw materials, the government will establish 10 new common facility centres in the 10 districts with the highest incidence of MSMEs. The government will also pursue reforms to facilitate the construction of warehouses near ORR and RRR.
The policy also proposes to reimburse the duty incurred on import of raw material at the time of import.
To encourage the adoption of the new technology, the government will constitute the Yantram Fund - a special fund for technology transfer and modernisation in the MSME sector. The government will allocate Rs 100 crore over the next four years to the Yantram Fund. The government will also pay the duty on imported samples valued up to Rs 10 lakh.
