Page 31 - Banking Finance December 2021

ARTICLE

Other state Government Initiatives:

Madhya Pradesh MSME Protsahan Yojana-
In a bid to boost Micro Small and Medium Enterprises
(MSMEs), the Madhya Pradesh government has launched
a scheme called 'Madhya Pradesh MSME Protsahan Yojana'
which would focus on attracting investment and encouraging
job creation among MSMEs in the state.

Under the scheme, the government would provide 40 per cent
grant for setting up businesses in the state along with a provision
of acquiring cheap land by providing 70 per cent of
employment to locals and representation of STs, SCs, and OBCs.

However, the scheme has already been implemented since
Financial assistance- A subsidy to the tune of 25% of the
October 1, 2019, and would provide the grant in four project cost not exceeding Rs.25.00 lakhs is provided under
installments while women and SC-ST entrepreneurs would the NEEDS Scheme. For projects costing more than Rs. 1.00
get an additional grant of 2-2.5 per cent.
Crore, the subsidy component restricts to Rs. 25.00 lakhs.
The project cost includes capital expenditure and margin
UYEGP Tamilnadu- (Unemployed Youth money for working capital. Cost of rented or leased building,
Employment Generation Programme) technical know-how, preliminary or pre-operative expenses
The Micro, Small and Medium Enterprises Department of and working capital margin will not be subsidized. Of the
Government of Tamil Nadu has introduced the scheme total project cost, promoter contribution must be more than
Unemployed Youth Employment Generation Programme 10% of the Project Cost for general category entrepreneurs
(UYEGP). The key objective of this UYEGP scheme is to and 5% of the project cost in case of special category
diminish the unemployment problems of socially and entrepreneurs (BC, MBC, DNC, SC, ST, Women, Minorities,
economically weaker section of the society, particularly Ex-Servicemen, Transgenders or Differently abled
among the educated and unemployed to become self- Entrepreneurs).
employed by setting up Service, Manufacturing, Business
enterprises by availing loan with subsidy assistance from the In addition to the above 25% subsidy, an interest subsidy to
State Government. Quantum of Maximum Government the tune of 3% is also provided under the NEEDS Scheme.
subsidy under the Unemployed Youth Employment For enterprises financed by Tamil Nadu Industrial Investment
Generation Programme (UYEGP), Government provides 25% Corporation (TIIC), the loan extends with a 3% rebate and
subsidy on project cost with a maximum limit of the interest rebate of 3% reimburses to TIIC on a quarterly
Rs.125000.Amount of the Bank Loan will be 90-95% loan of basis. For loans extended by commercial banks, the 3%
the project cost. (Including Government Subsidy of 25%). The interest subsidy provides a back-ended interest subsidy on a
bank should release 90-95% of the project cost as a loan and quarterly basis during the entire repayment period.
then claim the subsidy.
One District One Product Scheme- Uttar Pradesh
NEEDS Tamilnadu- (New Entrepreneur cum The Government of Uttar Pradesh has introduced the scheme,
Enterprise Development Scheme)- "One District One Product" to encourage and revive
The NEEDS Scheme is promoted by the Directorate of aboriginals' arts and craft products. The scheme would help
Industries and Commerce, Government of Tamil Nadu for Micro, Small and Medium Enterprises (MSME) to produce and
providing opportunities for a young or new educated promote products that are unique in Uttar Pradesh. One
entrepreneur with subsidy and support for starting a new District One Product (ODOP) scheme was initiated in 2018
venture. The scheme mainly targets educated youth with with a budget of Rs.25,000 crores, by the Government of
any Degree, Diploma, ITI or Vocational Training from Uttar Pradesh to revive the indigenous art form by providing
recognized Institutions. financial and marketing support. ODOP support the art

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