Bhubaneswar: The State Level Empowered Committee chaired by chief secretary Asit Tripathy Saturday sanctioned financial incentives to 278 MSME units in the State.

Fulfilling the promises for promotion of MSMEs, State government have extended various financial incentives to 278 units during the current fiscal, thereby taking the total incentivized units to 639 from April,2019. The amount of incentive has touched Rs.69.99 crore.

This was known from State Level Empowered Committee meeting held on Friday wherein principal secretary MSME Satyabrata Sahu presented the updates along with new proposals for sanction of subsidy.

Considering the new proposals, chief secretary Tripathy accorded in principle approval for Rs. 2.94 crore of Capital Investment (CI) subsidy in favour of two small scale enterprises.

The meeting considered the proposals of Kurpalu Solvent rice barn oil producing enterprise set up at Panikoili in Jajpur district with an investment of Rs.5.26 crore; and, Sri Ram Oil rice barn oil producing enterprise set up in Attabira panchyat of Bargarh district with investment of around Rs.4.87 crore for sanction of capital investment (CI) subsidy. They were sanctioned CI of around Rs.1.73 cr and Rs.Rs.1.21 crore respectively.

Director Industries Reghu G. appraised, “With this sanction the total amount of financial incentives sanctioned during current year has crossed 25.47 crore extended to 278 units”.

Principal secretary MSME Satyabrata Sahu said, “Mainly three types of direct financial incentives viz. capital investment subsidy (at two slabs of 25% and 33%), interest subvention @ of 5% per year for five years and VAT reimbursement for five years are provided to the MSMEs under different policies”.

Besides, the government departments and PSUs have been directed to procure at least 20% of their requirement from local MSMEs. In the year 2019-20 a total amount of around Rs.34.52 crore were provided as one or other incentive to 361 units. By November end of the current fiscal year Rs.25.47 crore were provided as incentives to 278 units.

These units are spread over the sectors like fly ash brick making, paper egg trays, corrugated papers, plastic molded products, milk and milk products, bakery, paper cup & plates, cotton ginning plant, shrimp processing, rice mills, cement products cashew kernels, rice ban oil, spices, pickles, noodles, PVC pipes and other miscellaneous industries.

Development commissioner Suresh Chnadra Mohapatra, principal secretary finance Ashok Kumar Meena and addl. director Industries Saroj Hotta participated in the discussions.