Haryana Gov to set up a Rs 100 cr fund for MSMEs, new industrial Policy on anvil to spur growth

Haryana Gov to set up a Rs 100 cr fund for MSMEs, new industrial Policy on anvil to spur growth

Friday May 08, 2015,

4 min Read

To facilitate convenient loans to MSMEs from banks, the Haryana government will set up a Rs 100 crore fund that will be kept with lenders as a guarantee. Besides, a Rs 1,000 crore fund, available under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) set up by the Centre, would be leveraged for the benefit of MSMEs in the state.


Speaking at FICCI National Executive Committee meeting in Chandigarh, Haryana Chief Minister Manohar Lal Khattar said the availability of bank credit without the hassles of collateral and third party guarantees would be a major source of support to the first generation entrepreneurs to realise their dream of setting up their own Micro, Small and Medium Enterprises (MSMEs). Khattar also said that MSMEs have been singled out for special support in the upcoming new Industrial Policy.

He said the state also intends to identify industrial zones across the state where industries, including MSMEs, would set up their units through simplified and delegated Chane of Land Use (CLU) process. The MSMEs would also be provided specific support by way of District Facilitation Centres which would provide hand holding services to the industry, he said. The Investment Promotion Centre at Delhi would also be strengthened for providing all necessary support to the industry, he added.

He said this during the Pravasi Bhartiya Diwas held at Gandhinagar in Gujarat, he invited the entrepreneurs of the country and abroad to set up their ventures and become partners in the state's development process. The state's new Industrial Policy 2015 is on anvil to spur growth, give further boost to the manufacturing sector, laying special emphasis on ease of doing business, he further said.

According to PTI, the Chief Minister invited all the stakeholders to come to Haryana, invest in the sectors of their choice and be partners in growth, besides assured them all possible support and cooperation of the state government. However, the CM lamented that the industrial sector in Haryana did not get the atmosphere it deserved. The state government is committed to provide an investment friendly atmosphere in the state, he said, adding that during the last few months, the government has been successful in providing such atmosphere to industries in the state.

He added that we endeavor to adopt a comprehensive approach to assist the MSME sector in becoming globally competitive and the policy would be aligned with the Make in India, Digital India and Skilling India campaigns of the central government. Estate Management Procedures are being revised and liberalised, with special focus on facilitation and transparency. Besides, land use norms would be liberalised to promote walk-to-work culture and incentivise developers for setting up of industrial colonies, which would also generate employment avenues for youth, Khattar said.

In addition, norms would be put in place to make industrial worker housing more affordable and CLU and licensing norms would be liberalised and made user-friendly to kick-start developmental activities throughout the state. Also, labour laws would be liberalised and streamlined to benefit industrial workers and management.

Key futuristic and flagship initiatives like Make in India, Swachh Bharat, Beti Bachao Beti Padhao, Skill India and Digital India have the potential for national and social transformation. Haryana is a small state, accounting for just 1.3 per cent of the total area of the country, but contributes nearly 3.4 per cent to the national economy, he added

The state, which was largely an agrarian economy initially, is now one of the most industrialised states in the country, with the manufacturing and allied activities and services sectors contributing about 86 per cent to the Gross State Domestic Product. He added that Haryana's proximity to national capital New Delhi, impressive infrastructure facilities, investor-friendly climate, pollution-free environment, excellent law and order situation, modern communication network, world class residential and commercial accommodation and cosmopolitan ambiance makes Haryana a perfect destination for investment.

Besides, as a part of Skill India campaign, Haryana has undertaken a skill gap analysis and thereafter set a target of skilling 17 lakh youth up to 2017.

Image Credit : Shutterstock

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