Karnataka announces MSME Sarthak to help develop priority sectors

MSME Sarthak will help develop a ready-to-use system by providing quality raw materials, loans and advances, and working capital.

Monday February 11, 2019 , 2 min Read

Karnataka Chief Minister HD Kumaraswamy unveiled a new scheme, ‘MSME Sarthak’, while he announced a new industrial policy for the state, reported KNN. The industrial policy aims to attract investment, develop new technologies, and generate additional employment.

“It will consider the comprehensive development of industries, especially to priority sectors in the backward areas of Tier II and III centres,” the minister said. “The existing 2014-2019 Industrial Policy will expire in September 2019.”

Kumaraswamy said MSME Sarthak would focus on developing a ready-to-use system where quality raw materials, loans and advances, and working capital will be provided.

He also discussed a new coir policy to promote the manufacture of goods by utilising available raw materials in the state. The coir policy, named ‘Kalpavruksha Kayaka Niti’, will comprise a 10 percent subsidy to self-help groups to procure coir. “A subsidy of 90 percent, subject to a maximum of Rs 25 lakh will be given for self-help groups or private units establishing coir processing units,” the minister said.

Further, a subsidy of Rs 1 crore will be given to private industries manufacturing value-added goods using coir. “Coir clusters will also be established to provide common facilities to the small and micro coir industries. A grant of Rs 80 crore is provided to implement all the schemes,” he added.

The minister also said that districts in Karnataka such as Koppal, Ballari, and Kolar would see investors coming in to set up industries. “We expect that 1 lakh jobs in each district, amounting to 9 lakh in total, will be created. Rs 110 crore is provided to continue this scheme in the current year,” he said.

In 2018, Power2SME announced similar plans to bring its business offerings to Karnataka and ensure seamless functioning of enterprises in the state. It will also focus on addressing capital and raw material woes of MSMEs in the state.

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