Service enterprises also eligible for MSME subsidies

Rs.100-crore target proposed to encourage sector

June 30, 2010 12:16 am | Updated November 28, 2021 08:57 pm IST - CHENNAI:

MATTER OF POLICY: P.Selvam , Additional. Chief Secretary, MSME Department (second fromright); Shabbir Abdulhussain , president, Hindustan Chamber of Commerce(left); Atul P. Bhayani ,chairman, expert committee on Trade and Industry, Hindustan Chamber of Commerce (second from from left) and B. Raghavan, president- elect, Hindustan Chamber of Commerce at a seminar in Chennai  on Tuesday. Photo: R. Ragu

MATTER OF POLICY: P.Selvam , Additional. Chief Secretary, MSME Department (second fromright); Shabbir Abdulhussain , president, Hindustan Chamber of Commerce(left); Atul P. Bhayani ,chairman, expert committee on Trade and Industry, Hindustan Chamber of Commerce (second from from left) and B. Raghavan, president- elect, Hindustan Chamber of Commerce at a seminar in Chennai on Tuesday. Photo: R. Ragu

Companies providing services will also be eligible to receive the subsidies given in the State for Micro, Small and Medium Enterprises (MSMEs), following a government order to the effect, says P. Selvam, Additional Chief Secretary for the MSME department.

Addressing a seminar organised by the Hindustan Chamber of Commerce here on Tuesday, Mr. Selvam said the government found that only Rs.30 crore of subsidies had been availed of by MSMEs in the previous year. This was partly because services companies had been left out. To encourage the sector, the government had proposed a target of Rs.100 crore as subsidies and decided to make services companies also eligible.

He said an order on rehabilitation of sick units was under preparation and the notification would be issued soon. Noting that MSMEs contributed heavily in terms of employment and turnover, Mr. Selvam said the State government had initiated various initiatives to encourage the sector. However, the pattern of development was biased towards cities and this needed to be corrected.

E.M. Joseph Ravi Devasahayam, Additional Director (rural projects), Department of Industries and Commerce, detailed the various policy initiatives of the State Government.

S. Sivagnanam, Director, MSME-Development Institute, said the website www.msmedi-chennai.gov.in contained all the information required by entrepreneurs on various programmes of the State and the Union governments.

A. Kamalakannan, Zonal General Manager, National Small Industries Corporation, Chennai, and Vinay Hedaoo, Deputy General Manager, Small Industries Development Bank of India, Chennai also spoke.

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