Gujarat allocates Rs 843 crore for MSMEs, Rs 35 crore for khadi in budget

The Gujarat government has made a provision of Rs 843 crore (approx $ 130 million) in the state’s 2018-19 budget for special schemes for development of micro, small and medium enterprises (MSMEs). It has also earmarked Rs 450 crore for various schemes of self-employment through cottage and rural industries and Rs 35 crore (approx $ 5.4 million) for incentives schemes to promote khadi.

A provision of Rs 16.50 crore has been made for marketing support for sale of goods manufactured by artisans. The budget was presented in the state assembly on February 20 by Gujarat’s deputy chief minister Nitin Patel, who holds the finance portfolio.

Under the Industrial Policy 2015, assistance is provided to MSMEs having capital investment in plants and machineries upto Rs 50 lakh, Rs 2 crore and Rs 10 crore respectively. Assistance is also provided for about 22 service sector activities apart from manufacturing and the budget proposed to increase the number of such service activities to 38.

Rupees 50 crore is allotted to initiate the ‘Start-up Fund’ for MSME units and provision has been made to offer incentives to industrialists under the state’s textile policy and garments and apparel policy as well.

Industrial infrastructure development work worth Rs 975 crore will be undertaken under the Gujarat Investment Promotion Programme (GIPP) during the next three years with support from Japan International Cooperation Agency (JICA). The budget provides for Rs 250 crore for the same, Patel announced.