MSME units in Gujarat, which participate in different exhibitions, are miffed as they allege facing difficulties in getting subsidy under the market development assistance (MDA) policy.
The district industries centres (DICs) process the applications submitted by MSMEs. However the grant amounts, they say, often fall significantly short of the requested subsidies. The Gujarat Chamber of Commerce and Industry (GCCI) has also raised the issue with the state government.
In a letter to the industries department recently, GCCI, the apex industry body in the state demanded that the assistance should be given in time.
A senior member of GCCI said, “We have received representations from our member units regarding the subsidy allocation for exhibitions under the MDA policy. The grant amounts often fall short. This has persisted for the past two years, causing distress among MSMEs and the DICs.”
“During the October-December 2022 quarter, various DICs submitted requests for Rs 11.31 crore in subsidies. However, only Rs 4.37 crore has been granted. As a result, DICs have increasingly been reluctant to process claims, leading to a backlog,” he added.
Gujarat-based chemicals, textiles, plastics, engineering sector companies participate in various national and international exhibitions and get significant orders. The industry has been demanding a review of the subsidy-allocation process under the MDA policy.