For accelerating growth of enterprises in the MSME Sector, State Cabinet has today approved the Odisha MSME Development Policy 2022. This Policy will replace the existing Odisha MSME Development Policy, 2016.
The Policy announces various progressive measures to incentivise the growth of MSMEs in promoting employment and contribution of MSME sector to the State’s GDP.
The Capital Investment Subsidy to new Micro, Small Enterprises has been extended to New Micro, Small and Existing Micro & Small Enterprises undertaking Expansion Modernisation and Diversification (E/M/D) at the rate 25% of Capital Investment made in Plant & Machineries and the subsidy limit has been enhanced from Rs 1 crore to upper limit of Rs 2 crore.
Similarly, the upper limit of Capital Investment Subsidy for new and existing enterprises owned by SC, ST, persons with disabilities, women & technical (Degree/Diploma) entrepreneur has been enhanced from Rs. 1.25 Crs to Rs. 2.50 Crs. In order to support growth of Micro, Small enterprises in Industrially Backward Districts namely Kalahandi, Nuapada, Bolangir, Subarnpur, Koraput, Nabarangpur, Rayagada, Malkangiri, Kandhamal, Gajapati and Mayurbhanj, in designated IDCO Industrial Estates or Industrial Areas along Biju Express Highway Corridor and Enterprise of eight focus sector in Automobile & Auto Components, Plastics & Polymers, Steel & Stainless Steel, Defence Equipment, Aluminium, Pharmaceuticals, Medical Equipment and Apparel & Textile sector., an additional Capital Investment Subsidy @ 5% of investment made in Plant and machinery up to Rs 20 lakh over and above the limit prescribed of each of the category will be available.
For the first time, New and existing Anchor enterprises undertaking E/M/D shall also be eligible for CIS @30% of investment made in Plant & Machinery subject to a maximum limit of INR 4 Crores and the Policy also provisioned an additional CIS @5% of capital investment made in technical civil works and Plant & Machinery for the New and existing enterprises adopting non-polluting measures, subject to an upper limit of Rs 25 lakhs.