State doles out sops for small, micro industries | mumbai | Hindustan Times
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State doles out sops for small, micro industries

Micro and small industries will get additional incentives if they set up shop in Maharashtra. The state cabinet on Wednesday approved a special package for this sector to attract more investment.

mumbai Updated: Jul 01, 2010 00:21 IST
HT Correspondent

Micro and small industries will get additional incentives if they set up shop in Maharashtra. The state cabinet on Wednesday approved a special package for this sector to attract more investment.

The package will be available for units that are set up in industrially backward areas. The Maharashtra Industrial Development Corporation (MIDC) will be nodal agency for implementing the scheme.

“Over the past few years, the global economic slowdown adversely affected micro and small industries,” Industry Minister Rajendra Darda told Hindustan Times. “The incentives were there in the package that was declared 2007 but these industries could not avail them because of certain provisions,” he added.

Under the amended package, micro and small industries will get an interest subsidy of 5 per cent on bank loans. The rate of subsidy for promoting industry has been increased to 50 per cent from 25 per cent.

The state has also reduced the investment level required for classifying an industry as small or micro from Rs 1 crore to Rs 25 lakh. “Industries associations approached us with suggestions and we have tried to incorporate them in new policy,” Darda said.