The Gujarat government will disburse Rs 730 crore as “capital incentives” to over 16,000 MSMEs, a year after 42,500 units were reported sick in the state. Chief Minister Vijay Rupani will disburse the checks at an event on August 19. “Every year, the government gives an assistance of about Rs 300 crore. We will give a total of Rs 730 crore this year as capital incentives to 16,000 MSMEs to help them expand or set up new units. This will create over 1.6 lakh new jobs,” said M K Das, Principal Secretary, Industries and Mines Department.
This disbursal will be done as per the Industrial Policy-2015, under which the state government had promised to provide financial assistance on term loans provided by banks to the MSMEs. The government is also providing 50 per cent capital subsidy on investments in clean technology, which includes purchasing equipment to meet national and international safety, energy and pollution standards.
The 16,000 MSMEs are expected to make a cumulative investment of Rs 19,000 crore for which they have sought Rs 11,000 crore loans from various banks between April and July, added Das. The aid has come at a time when the number of sick MSMEs has been rising. From 20,452, that were reported sick in 2013, the number has risen to 42,500 in 2016. Gujarat currently has the third highest number of sick MSME units in India, just behind UP (95,989 units) and Maharashtra (52,576).