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Orissa MSME policy for technological upgrade

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Bishnu Dash Bhubaneswar
Last Updated : Feb 05 2013 | 4:40 AM IST
To encourage micro, small and medium enterprises (MSMEs) in the state to adopt modern cutting edge technology, the draft MSME development policy of the Orissa government has proposed the launch of an 'Orissa technology upgradation fund'. It will have a corpus of Rs 50 crore and will extend financial assistance to MSMEs for technology upgrade.

The policy seeks utilisation of the fund for subsidising the institutional credit availed by MSMEs for technology upgrade.

The draft policy states that MSMEs shall be eligible for the reimbursement of 50 per cent of the cost of the purchase of the technical knowhow up to Rs 1 lakh in case of indigenous technology and up to Rs 5 lakh in case of imported technology. The benefits will be extended to the MSMEs according to the provisions of the Industrial Policy Resolution (IPR), 2007.

The state government will also try to promote adoption of Clean Development Mechanism (CDM) and related technology by MSME units.

It will subsidise consultancy services for adoption of CDM by the micro and the small units to the extent of 50 per cent of the charges or Rs 25,000 whichever is less.The detailed guidelines will be notified by the state government after the policy comes into force.

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"Concerted efforts shall be made to increase awareness about the programmes and the schemes of the government of India meant for incentivising the adoption of higher technology by MSMEs. The progress of credit delivery under such schemes shall be closely monitored and corrective steps initiated wherever necessary," the draft points out.

As a measure to promote new entrepreneurs, technology and innovations the 'Orissa Venture Capital Fund' shall be launched with an initial corpus of Rs 10 crore.

The venture fund will provide financial assistance and services to new and innovative micro and small units. It will adopt a flexible approach for supporting investing companies and provide financial assistance in the form of equity and quasi-equity.

The state government will provide the initial budgetary support for this fund and other stakeholders such as commercial banks, financial institutions and industries will be roped in the process. Orissa State Financial Corporation, the government-owned lender, will announce the details of the scheme later.

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First Published: Jun 23 2008 | 12:00 AM IST

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