Patna, Jan. 17: The industries department plans to encourage the micro, small and medium enterprises (MSME) sector by enhancing subsidies given to them.
Sources in the department told The Telegraph that with the perennial problem of land availability, the entrepreneurs have been asked to first identify the area or the land on which they want to set up their unit before approaching the State Investment Promotion Board (SIPB) for approval.
“There was a mid-term review of the industrial incentive policy, which was attended by senior department officials as well as representatives of the industrial bodies. The capital subsidy, provided to the MSMEs, would be increased from the present Rs 75 lakh to Rs 2 crore. This has been done to promote the small and micro enterprises and give them a stable and concrete platform. With big investments still not entering the state, the development of small and medium industries, which operate in the state, is important. The proposal would go to the cabinet soon for formal approval,” said a department official.
Apart from this, those willing to expand their existing units in Bihar would also be helped.
“At present, the government gives a subsidy up to Rs 5 crore for units which plan to expand after properly studying their utility and chances to grow and strive. This amount would be increased to Rs 7.5 crore, which the cabinet is expected to approve soon. This would be a big boost to those industrialists who want to expand their units. The government has decided to focus more on the investments they have in their kitty rather than just wait for big investments,” said another official.
Entrepreneurs wishing to knock on the doors of the SIPB to get their projects approved have been asked to identify the area in which they want to set up units.
“We have not asked them to get land first and then apply. Approval would be given after a proper study of the proposal,” said the official.