Date:23/02/2008 URL: http://www.thehindu.com/2008/02/23/stories/2008022357380100.htm

Front Page

Policy for MSM industries unveiled

Special Correspondent

Infrastructure development a goal
Plan to offer package of incentives

CHENNAI: Chief Minister M. Karunanidhi on Friday unveiled a separate policy to aid the rapid growth of micro, small and medium (MSM) industries in the State and to enable them to respond effectively to changes such as reduction in trade barriers and improvement in information technologies. There are about 5.3 lakh registered micro and small enterprises and SSI units in the State, employing 37 lakh people. The total investment in the sector is Rs.16,817 crore.

Infrastructure development in identified industrial estates, reservation of land for their exclusive use, a package of incentives, including capital subsidy, special capital subsidy for 10 thrust sector industries, various schemes for technological upgradation and development, liberal support to training and marketing schemes, simplification of procedures at the government interface level and a separate policy for rehabilitation of sick MSM industries are among the major proposals in the 42-page policy booklet.

“No State has it [a separate policy for small industries],” said Pongalur N. Palanichamy, Small Industries Minister, who headed the team that drew up the policy based on extensive consultations with experts and end-beneficiaries.

“It used to be a chapter in some corner of the industrial policy,” he said. Mr. Palanichamy said that MSM industries should enhance their competitiveness and promote job creation. The thrust sectors include electrical and electronic industry, leather and leather goods, auto parts and components, drugs and pharmaceuticals, solar energy equipment, gold and diamond jewellery (for exports), pollution control equipment, sports goods and accessories, cost-effective building material and ready made garments. Units in these sectors will get a special capital subsidy subject to a maximum of Rs. 30 lakh.

Also, micro industries set up anywhere in the State have a special package that includes capital subsidy, subsidy on power tariff and Value Added Tax. Capital subsidy of a maximum of Rs.40 lakh will be given to MSM industries established in 251 backward blocks/industrial estates and agro-based industries set up in all 385 blocks in the State. Henceforth, up to 20 per cent of land in all SIPCOT estates will be reserved for MSM industries and up to 30 per cent of land for micro industries in SIDCO estates. Private sector industrial estate developers will be given infrastructure subsidy. The policy targets a sustained annual growth rate of over 10 per cent for MSM industries and aims to promote direct and indirect employment for 10 lakh persons in the 11th Plan period.