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TN to offer incentives to promote MSME sector

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CIOL Bureau
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CHENNAI, INDIA: The Tamil Nadu government is planning to create a venture capital fund with the support of private industries and foreign investors for the Entrepreneurship Development Institute (EDI) in the state, according to a news report by Business Standard.

State finance minister, O Panneerselvam, said that the EDI will also create a corpus fund by pooling resources from financial institutions, and the state and Central governments. The EDI will be revamped to motivate and train young entrepreneurs, particularly first generation entrepreneurs, he added.

Also read: MSME body warns of crisis on credit flow dips

Speaking about sectoral development in the state, Panneerselvam said the state had set a target of developing 50 clusters in the 11th Five Year Plan. The state’s Small Industries Development Corporation Ltd (Sidco) has identified 2,256 acres in 25 locations to promote industrial clusters for micro, small and medium enterprises (MSME) in the coming years.

In the 11th Plan it is proposed to develop 50 clusters under the Cluster Development Programme to promote micro and small enterprises. Fifteen clusters have been taken up so far and nine clusters are proposed to be taken up in 2011-12.

“Depending on the suitability, the land available in the defunct co-operative spinning mills will be utilised for setting up new industrial estates to promote industries in the MSME sector and generate employment opportunities,” said the finance minister.

In 2011-12, Sidco has proposed to take up infrastructure works in seven new industrial estates at a cost of Rs 23.50 crore and upgrade infrastructure facilities in eight industrial estates at a cost of Rs 27.49 crore.

The activities of Sidco will be revamped by reviewing the land pricing policy, creating land banks and simplifying procedures. At present, Sidco is giving a 15 per cent capital subsidy to promote the MSME sector.

“We will examine ways to give additional incentives to encourage investments under the MSME sector. As a first step, the Tamil Nadu Industrial Investment Corporation (TIIC) will provide credit to micro, small, and medium industries with three per cent interest rebate,” Panneerselvam said.