Chief Minister Jagan Mohan Reddy launched the "Jagananna YSR Badugu Vikasam", named after him and his late father, on Monday amid criticism that the Industrial Policy 2020-23 launched on August 10 did not have anything worthwhile for prospective entrepreneurs from the downtrodden communities.
A 25 paise increase in reimbursement of power charges per unit, a 10 per cent rise in investment subsidy and an enhancement of 9 per cent in interest subsidy for micro, small and medium enterprises (MSMEs) are the notable features in the separate policy for SCs and STs.
Under Badugu Vikasam, SC and ST entrepreneurs setting up manufacturing units will get an investment subsidy of 45 per cent, with a cap of Rs one crore.
For service sector and transport-related units, the subsidy amount has been capped at Rs 75 lakh, according to the policy document.
The interest subsidy for MSMEs that was fixed at three per cent in the Industrial Policy has been enhanced by nine per cent under Badugu Vikasam.
Similarly, power cost reimbursement increased to Rs 1. 50 per unit.
It said 25 per cent seed capital assistance will be provided for machinery for first generation entrepreneurs establishing micro units.
In the industrial parks in AP, 16.2 per cent of plots would be reserved for SCs and six per cent for STs.
The SC and ST entrepreneurs need to pay only 25 per cent of the land cost upfront and the balance payment could be done over 8 years, with 8 per cent interest, after the start of commercial production.
A dedicated SC and ST Entrepreneur Facilitation Cell will be set up in all District Industries Centres for handholding support and Entrepreneurship Development Programmes will be taken up to provide necessary capabilities and skills, the policy document said.
The government will take up capacity building, skill development training programmes, sectoral studies for future- ready investable opportunities and identification of various marketing opportunities in the respective sectors for the SC and ST entrepreneurs.
Explaining the need for a separate industrial policy for SCs and STs, the Chief Minister noted that there had been no major spurt in entrepreneurship among these communities over the years.
"On an average Rs 50 crore for SCs and Rs 15 crore for STs was provided per annum (as incentives) from 2008-09 to 2020-21. This has not resulted in growth of entrepreneurship among these communities," he pointed out.
The ''Badugu Vikasam'' would encourage increased participation of SC and ST entrepreneurs by providing a package of special incentives.
Jagan Mohan Reddy said the new policy would promote manufacturing and service sector activities among the socially disadvantaged communities to create greater economic impact.PTI DBV SS PTI PTI
Disclaimer :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI