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?1,416 crore package to bail out MSMEs

Support includes interest subvention and relief in payment of rentals

The State government has announced a relief package of ?1,416 crore for micro, small and medium enterprises (MSMEs) as part of the second tranche of support to help the sector tide over the pandemic-induced crisis.

The support includes interest subvention, relief in payment of rentals on standard design factories under various agencies such as Kinfra and KSIDC, and subsidy support for new enterprises, especially those in the industrially backward districts such as Kasaragod, Wayanad and Pathanamthitta.

Announcing the package at a webinar organised in connection with the World MSME Day celebrations on Sunday, Industries Minister P. Rajeeve said MSMEs could avail itself of the assistance from July to December.

He said the State was looking keenly at responsible investment even as the investment climate had tremendously improved. Socially responsible, sustainable and environment-friendly investments were the ways to face our future, he said.

The Minister said entrepreneurs who had defaulted on repayment of loans from the KSIDC would be allowed to seek restructuring of the loans. The Corporation would provide low interest loans worth ?100 crore to 150 MSMEs. Another low interest loan scheme was being worked out for Non-Resident Keralites (NoRKs) returning to State.

Mr. Rajeeve said the first Pinarayi Vijayan government had succeeded in helping 68,000 new MSMEs to take root. These units provided employment to an estimated 2.42 lakh people.

‘One District One Product’

The first of the enterprises under the ‘One District One Product’ programme was expected to get off the ground soon with a scheme launched under ‘Atmanirbhar Bharat’ banner to create micro enterprises.

The Minister said around 145 online applications had been received by the Industries Department and over 100 units were expected to be launched within a short time.

The Kerala Agricultural University (KAU) and the Industries Department had joined hands for the ‘One District One Product’ programme, which is being implemented across the country identifying unique products which are strengths of each district.

“The effort of the programme is to strengthen local products, process, add value, create recognisable brands and market it successfully. A study had identified produces as varied as mussels for Kasaragod, banana for Palakkad, pineapple for Ernakulam and rice for Thrissur district,” he said.