More incentives for small scale sector

The Government increased the incentives for the cluster development programme.

The Government on Thursday increased the incentives for the cluster development programme (CDP) to encourage micro and small enterprises (MSE),hit hard by the global downturn.

The guidelines,approved by the Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister,seek to enhance the maximum cost for the common facility centre from Rs 10 crore to Rs 15 crore,with a Government contribution of 70 per cent.

“Enhancement of the maximum project cost for infrastructure development from Rs 5 crore to Rs 10 crore,with government contribution of 60 per cent,” an official statement said.

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As per the modifications,the CCEA also approved the enhancement of the maximum project cost for soft interventions (capacity building,design inputs) from Rs 10 lakh to Rs 25 lakh,with government contribution of 75 per cent.

The Government also increased the cost ceiling for preparation of detailed project report to Rs 5 lakh,it said.

“The implementation of modified MSE-CDP will facilitate in enhancing the sustainability,productivity and competitiveness of micro and small enterprises,” it said,adding the outcomes of these initiatives would be in the form of coverage of more number of enterprises,increased production and turnover and increased employment and exports.

There are about 26 million MSEs in the country.

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