Chandigarh, Jan 22 (KNN) The MSME sector in Punjab needs funding of Rs 18,187 crore in 2014-15 including term credit and working capital, according to a Focus Paper prepared by the National Bank for Agriculture and Rural Development (NABARD).
The estimate is about nine per cent more than that in 2013-14. The economy of Punjab is mainly dominated by the MSME sector. The micro and small enterprises in the state account for 47 per cent of the sector’s output, 60 per cent of its exports and 21 per cent of the investment.
The Punjab Government had launched a new industrial policy in June 2013, which it notified last month. The industrial policy is believed to attract investment worth Rs 25,000-50,000 crore across sectors in the state over a couple of years.
Under the incentive-based Industrial Policy-2013, a liberal package of fiscal incentives for manufacturing sector, integrated textile units, agro and food processing sector and also for electronics hardware and Information Technology has been approved.
According to the policy, the state government will offer incentives on Value Added Tax (VAT) and Central Sales Tax (CST), electricity duty, stamp duty, property tax, rural development fund (RDF) and infrastructure development cess.
Also, it will also focus on the development of SMEs with a capital investment within Rs 1-10 crore.
According to Nabard, the incentive-based new Industrial policy announced by the state government in 2013 for MSMEs would be a catalyst for growth, and further development of the transportation network will facilitate marketing of produce manufactured by such enterprises, reports media.
This means opportunities for bankers, it added.
In order to promote investment in the state, the Industrial Policy of 2013 offers a special package of concessions to the information technology and knowledge-based industries, agro-based industries and food processing. According to Nabard, the policy could attract new investment by MSMEs in these areas, it said.