Rajasthan Announces New MSME Policy

| Updated: December 1, 2022 9:00 pm

Rajasthan Industries and Commerce Minister Shakuntala Rawat recently initiated MSMEs Policy 2022 to facilitate financial and technical support with conductive regulations in accordance to strengthen the contribution of MSMEs to Rajasthan’s Gross Domestic Product (GSDP) along with exports.

The policy envisions establishing 20,000 Micro, Small and Medium Enterprises) units with an additional investment of Rs 10,000 crore and the creation of employment for nearly 1 lakh people. The policy also intended to facilitate 9,000 MSMEs to gain ‘Zero Defect Zero Effect’ (ZED) certification. Additionally, the Rajasthan government made a formal announcement in the state budget for 2022–2023 with a view to boosting MSMEs by offering loans on convenient terms to help entrepreneurs and investors launch their businesses without the customary hassle. According to the minister of industries for Rajasthan, over the course of the next five years, over 50,000 new job possibilities would be created in the state and the programme will help small enterprises.

Rajasthan offers MSME programmes for businesses that provide goods, services, and other related goods and services. According to the official statement, loans are approved through financial organisations such as nationalised commercial and private sector banks, scheduled small financing banks, Rajasthan Financial Corporation, and regional rural banks. A 150 crore rupee provision is set up for it, and it will be in place until March 2024. The programme offers up to 10 crores in loans for new industrial and service sectors, and 1 crore for businesses expanding, diversifying, or modernising. The programmes include working capital loans with cash credit limitations, term loans, and composite loans.

According to the RBI standards, collateral security is not required for loans under INR 10 lakh. Before being sent to the bank, applications for loans of more than Rs10 lakh are examined by the District Level Task Force Committee. The state government offers interest subsidies on these loans as an additional advantage. Over 90% of businesses in Rajasthan fall into the MSME category, therefore it’s important to take into account their various needs and give them the protection and freedom they need to grow. Over 37.33 lakh people have jobs in Rajasthan’s MSME sector, making the last four years a prosperous time for the industry. According to the announcement, the MSME businesses’ total export for the fiscal year 2021–2022 will be Rs 72,000 crores, contributing an estimated 24.50 per cent to the GDP during this time.

According to the statement, the Rajasthani government would keep working to improve the regulatory climate for the MSME sector, and the policy will be enhanced financial and technical support for both established companies in this industry and new ones. MSMEs are characterised as being of modest size and investing in both the manufacturing and service industries.

The Ministry of Micro, Small, and Medium Enterprises oversees MSME, a nodal agency for these businesses. It provides assistance to MSMEs at various stages at the Central and State level by developing a number of programmes, including credit-linked financing assistance, interest subsidies, funding support for various operations, market support, international promotion, technological up-gradation, etc.

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