Cabinet okay's enhanced subsidy for MSMEs in J&K
The government today decided to double subsidy for micro, small and medium enterprises (MSMEs) in Jammu and Kashmir, at par with North Eastern states.delhi Updated: Dec 15, 2010 15:46 IST
The government on Wednesday decided to double subsidy for micro, small and medium enterprises (MSMEs) in Jammu and Kashmir, at par with North Eastern states.
The decision to modify the Central Capital Investment Subsidy Schemes for J&K was taken at a cabinet meeting here.
The capital investment subsidy for the MSMEs in the state will be enhanced to 30% of the investment on plant and machinery, according to an official release.
Also, these units both in J&K and NER will now be eligible to claim subsidy each time they undertake expansion as long as the total investment on plant and machinery does not exceed the prescribed ceilings.
The limit for units in the manufacturing sector is Rs 10 crore and for the services sector Rs 5 crore.
The scheme is one of the components of the industrial packages announced for J&K in June 2002 and for NER in April 2007, for boosting industrialisation in these states.
The other industrial incentives include 100% excise duty exemption, income tax exemption, interest subsidy of 3% on working capital loan and reimbursement of comprehensive insurance premium on capital.
These changes have been made as per the recommendations of a Task Force on MSME, which was set up by Prime Minister Manmohan Singh in September 2009, under the chairmanship of the Principal Secretary T K A Nair.
It was formed to look into issues like non-availability of easy credit, infrastructure, taxation and labour laws as the MSME sector was badly hit due to the global economic slowdown.
The MSME sector, which employs 42 million people, contributes about 45 per cent to India's total manufactured output and close to 40% to the country's exports.