The State government’s new industrial policy to promote first generation female entrepreneurs hopes to take the overall participation of women in the micro, small or medium enterprises (MSME) sector to double digits, from 9% to 20%.
The government on Friday released the formal draft of the State Industrial Policy (Women), which was cleared by the Cabinet earlier this month. Along with incentives for women entrepreneurs, a capital subsidy of up to ₹1 crore has also been cleared.
The government will also provide minimum financing between 15% and 35% of the project cost for women-dominated startups. Other incentives include reserving State land and spaces at malls, railway stations and airports for women-run business, and other concessions, including rebates in power tariffs and interest subsidies.
State Industries Minster Subhash Desai, while releasing the blueprint earlier this month, had said, “We understand women-run businesses have been a source of strength for the State economy. Yet, the participation of women in the MSME sector has been disappointing as opposed to the national average of 13.8%. We want to create more women entrepreneurs and increase their participation.”
The minister had said the government expects to spend ₹650 crore from the State exchequer to implement the policy.
The policy identifies women-run businesses as those in which women have single ownership or a partnership, women cooperatives, self-help groups and private-public partnership firms.
Senior officials said that groups from backward areas and regions affected by Naxalism will be eligible for 35% funding assistance.
“We want to promote development in these regions, where women participation is the lowest. The range of contribution made by the State government to these groups will be between ₹20 lakh and ₹1 crore,” said an official.
The businesses will also get incentives in the form of power tariff, interest subsidies and grants for branding. “The electricity tariff will be reduced by ₹2, while a 5% interest subsidy will be given in loans, and another small kitty of ₹5 lakh will be provided to them to promote the products,” said an official from the Industries Department.
