To boost flow of credit to micro and small enterprises in the state and enhance their viability, the Assam government will launch a credit linked special incentive package for the sector. Under the package, 10 per cent to 50 per cent interest subvention would be provided to micro and small enterprises on the term loan disbursed by the scheduled commercial banks and state financial corporation; depending on the scale and entitlement.
The proposal was announced by chief minister Tarun Gogoi, who also holds the additional finance portfolio, while presenting the state budget for the year 2015-16. "I have always been laying emphasis on micro, small and medium enterprises (MSME) sector. My government has already launched the Angel Fund for providing soft loans at negligible interest rates for first generation micro entrepreneurs. Further, my government will initiate special incentive package for small and medium industries," said Gogoi. Gogoi also announced to convert land available with closed state public sector undertakings (PSUs) for setting up of industries. "Adequate industrial infrastructure is a prerequisite for industrial development. My government will pursue conversion of land available with the closed PSUs into productive industrial infrastructure," said Gogoi. He also proposed to establish industrial estates in all district headquarters.
"The credit linked special incentives package for micro and small enterprises is expected to encourage the flow of credit to micro and small enterprises and enhance their viability.
The announcement of industrial estates in all district headquarters is a welcome development," said Abhijit Barooah, co chairman of Confederation of Indian Industry's (CII) North-East Council.The budget also withdrew Entry Tax on plant and machinery, a demand the industry had been making for past several years. "Our demand has been finally met in this budget. Taxing of capital in form of Entry Tax on plant and machinery was a regressive measure which has been thankfully and rightly corrected in this budget," said RS Joshi, chairman of Federation of Industry and Commerce of North Eastern Region (FINER).
The budget also proposed to extend the concession given to tea industry in the form of rebate of Rs 6 per kg of made tea on agricultural income tax if exported through Inland Container Depot (ICD), Amingaon, up to 2017-18.
