Rajasthan targets to set up 20,000 new MSME units with investment of Rs 10,000 cr

Jaipur (Rajasthan) [India], November 15 (ANI): Rajasthan Industries and Commerce Minister Shakuntala Rawat recently launched MSMEs Policy 2022 to provide financial and technical assistance with a conducive regulatory environment in order to enhance the contribution of MSMEs to the state of Rajasthan's Gross Domestic Product (GSDP) as well as exports.
According to the State government, the policy envisaged the setting up of 20,000 new MSME (Micro, Small, and Medium Enterprises) units with a cumulative investment of Rs 10,000 crores and employment generation for 1 lakh people. The policy also proposed to facilitate 9,000 MSMEs to obtain 'Zero Defect Zero Effect' (ZED) certification.
Also, the Rajasthan government officially announced in the state budget 2022-23 with a view to promoting MSMEs by providing loans on easy terms to enable small business owners and investors to set up their ventures without the usual fuss. The Rajasthan Industries Minister indicated that the policy will benefit small businesses and that there will be over 50,000 new employment opportunities in the state over the next five years.
MSME schemes in Rajasthan are given for manufacturing, services, and other similar enterprises. Loans are sanctioned through financial institutions like nationalized commercial and private-sector banks and scheduled small finance banks as well as Rajasthan Financial Corporation and regional rural banks, said the official statement.
A provision of Rs 150 crores is reserved for the same and will remain effective up to March 2024. The scheme grants a loan of up to 10 crores for new manufacturing and services industries, and 1 crore for units undergoing expansion, diversification, or modernization. The schemes include composite loans, term loans, and working capital loans with cash credit limits.
The RBI guidelines state that collateral security is not needed for loans up to INR 10 lakhs. Applications for loans over 10 lakhs are scrutinized by the District Level Task Force Committee before being forwarded to the bank.
Another benefit is that the state government provides interest subsidies on these loans. Over 90 per cent of the enterprises in Rajasthan come under the MSME category, and it is crucial to consider their diverse requirements and provide the security and empowerment they require to flourish. The last four years have been a flourishing period, with over 37.33 lakh people employed in the MSME sector in Rajasthan. The contribution to the GDP during this time is estimated to be 24.50 per cent, and the total export of MSME industries for the financial year 2021-22 is Rs 72,000 crores, said the statement.
The statement said that the Rajasthan government will continue to create a better regulatory environment for the MSME sector, and the policy will extend improved financial and technical assistance to existing and newcomers in this sector.
MSMEs are defined as being small-sized organizations that make investments in both the manufacturing and service sectors.
A nodal agency for Micro, Small, and Medium Enterprises, MSME works under the Ministry of Micro, Small, and Medium Enterprises. By creating several programmes, including credit-linked financing assistance, interest subsidies, funding support for various operations, market support, foreign promotion, technological up-gradation, etc, it offers help to MSMEs at various stages at the Central and State level.
In Rajasthan, there are 26.87 million MSMEs, and these businesses have generated 46.33 million job possibilities, putting a strong focus on the growth of women-owned MSMEs (numbering 3,80,007). (ANI)