JK to implement state budget for small, medium enterprises

Works out modalities for financial support to carpet, textile industry, development of rural IEs as per Budget 2018-19

SAQIB MALIK
Srinagar, Publish Date: Mar 22 2018 11:54PM | Updated Date: Mar 22 2018 11:54PM
JK to  implement state budget for small, medium enterprises

Jammu and Kashmir Government has set the ball rolling to implement the state budget of coming financial year (2018-19) for micro small and medium enterprises (MSMEs) and the handicrafts sector.

In a recently held meeting, top officials from Industries Department along with its affiliate directorates and corporations kick-started modalities for fulfilling the state budget announcements made for the industry.

A senior official who was part of the meeting told Greater Kashmir that the department and its affiliates have initiated modalities to roll-out more than Rs 30 crore budgetary provisions earmarked for industries, handicrafts and textiles sectors.  

“The process has been initiated to ensure that concerned either prepare the DPRs or fine-tune them for the funds allocated for growth and development of MSMEs, handicrafts and textiles sectors,” the official said.

According to minutes of the meeting, a copy of which is with Greatr Kashmir, with regard to the state budget allocation of Rs 5 crore each to Handicraft Development Corporation and Handloom Development Corporation, it was decided that proposal put forth by the Handloom Corporation “be revisited keeping in view the international standards and quality covering all the parameters so that the state can compete in the international market”.

“The proposal should indicate a roadmap for branding and marketing of J&K tweed as ‘exclusive hand woven’,” read the minutes of the meeting. With regard to the budget announcement of Rs 1 crore incentives for SMEs and industrial units for initiating a process to get listed on SME exchange and other stock exchanges, it has been decided that “the Industries Department in consultation with MDs of SICOP, SIDCO and other stakeholders frame the scheme and submit it to the administrative department,” the document reads. It was also decided that the same stakeholders must frame the “CMs Business Interest Relief Scheme” which has a provision that for all the RBI approved restructured accounts, the government will contribute one third of interest payment of all the borrowers.

It has also been informed that recommendations by the government-trade working group on revival of carpet industry have been made to the finance department. For utilizing Rs 5 crore Budget allocation for supporting the carpet industry, it has been decided that “Director, Indian Institute of Carpet Technology (Srinagar) will prepare a DPR for financial support to the carpet industry in manufacturing and marketing activities with brand promotion,” the official said.

“Besides a provision for participation in six national and six international events along with two international fairs in the state be kept in the proposal,” the document stated. As a follow-up to the budget announcement for carpet industry, it has also been decided that IICT “should prepare a write-up with regard to setting up of geographical clusters, Common Facility Centers in villages where carpet weaving is a major activity”. “A DPR has been prepared by IICT for creating a ‘design bank’ for which Rs 1 crore has been allocated in the budget. This design bank is an effort towards coordinating the carpet design activities currently performed in isolation by independent designers, IICT and School of Design,” the document reads.

The meeting was also informed by MD JKSICOP that DPRs for setting up 12 industrial estates across rural areas has been prepared and will be submitted shortly. The state budget had made a provision of Rs 10 crore for setting-up of these IEs.

The DPRs for revival of Woollen Spinning Plant Solina, commissioning of Spinning Mills Nowshehra, Jammu and setting up of a silk factory at Bari Brahmana in Jammu “will be shared with the planning department and monitoring department for funding,” the official said. All these three projects have been earmarked a total of more than Rs 20 crores.

 

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