EXTRAORDINARY
PUBLISHED BY AUTHORITY
No.2143 CUTTACK, SATURDAY, NOVEMBER 17, 2018/KARTIKA 26, 1940
MICRO, SMALL & MEDIUM ENTERPRISES DEPARTMENT
NOTIFICATION
The 13th November, 2018
Subject : Amendment of Odisha MSME Development Policy, 2016.
No.7262–MS&I-113/2018/MSME.–— After careful consideration, Government have
approved the following amendments in the provisions of Odisha MSME Development
Policy, 2016:
1. Definition of ‘Downstream Enterprise’ at Sl. No.3 of Annexure-I: ‘Appendices’
shall be replaced with the following:—
“Downstream Enterprise” means an Industrial undertaking, which is
engaged or proposed to be engaged in value addition of the intermediate
or final produce or waste product of one or more industrial undertakings
within the State utilizing a minimum of 50% by weight as base raw
material. The Downstream Enterprise shall not include the following
items/ activities based industry, having low value addition :
Sl.
No.
Aluminum
(Al.)
Sl.
No.
Steel
Sl.
No.
Stainless Steel
1
Al. Circles
1
Welding
Electrode
1
SS Stapler
2
Al. Hinges
2
Corrugated
Sheet
2
SS Structure
3
Al.
Metal
Mesh
3
Cable Tray
3
SS Annealing
4
Al. shots &
notch bars
4
Motor
Rewinding
4
Service Centers
5
Al.
Tower
bolt
5
Galvanizing of
Structure
Pipes
Other Items
6
Caps
&
closures
6
Pipe Coating
1
Manufacturing
of
Asbestos
sheet
by
using Fly Ash
7
Venetian
blinds
7
Furniture
making
8
Barbed wire
9
Wire nails
2
2. Under the Annexure-II: ‘List of Ineligible Enterprises’ at Sl.6, the existing
provision relating to ‘Oil mills” shall be replaced with the following:—
”Edible / Non-Edible Vegetable Oil Mills having;
(i) Expeller with investment in plant & machinery less than Rs.10 lakh,
(ii) Solvent Extraction with investment in plant & machinery less than Rs.50 lakh,
(iii) Hydrogenation of Oil,
(iv) Repacking of Oil with Filtering, Coloring and Deodorizing, and
(v) Refining of Oil with investment in plant & machinery less than Rs.5 crore.”
3.Under the Annexure-II: ‘List of Ineligible Enterprises’ at Sl.14, the existing
provision relating to “Iron and Steel Processors” shall be replaced with the following:
“Iron and Steel Processors :
a) Coiling and De-coiling of Sheets, Straightening and Cutting of sheets and Rods,
Cutting of angle, Channels, Bars Blooms, Billets, Slabs etc.,
b) Iron and Steel scrap processing unit, and
c) Integrated Rolling Mill.”
4. Under the Annexure-II: ‘List of Ineligible Enterprises’ at Sl.34, the existing provision
regarding “Pre-processing of oil seeds” shall be replaced with the following:
“Pre-processing of oil seeds : decorticating, parching and frying.”
5.Under the Annexure-II: ‘List of Ineligible Enterprises’ at Sl.35, the existing provision
relating to “Aerated water and soft drink” shall be replaced with the following:
“Standalone Packaged drinking / Mineral water units, Aerated water, soft drink
(except the units manufacturing fruit pulp and / or juice out of it)”
6. Under section-6 of the Policy on “Financial Support Framework” a new provision as
follows shall be inserted at Sl.No.6.9:
Incentives for ZED Certification
6.9.1 New and existing Micro, Small & Medium Enterprises shall be encouraged to
adopt the Zero Defect Zero Effect (ZED) maturity assessment model under the
“Financial Support to MSMEs in ZED Certification Scheme” of Ministry of MSME,
Government of India, for which Quality Council of India (QCI) is the National
Monitoring & Implementing Unit (NMIU). This will not only promote quality
manufacturing amongst MSMEs of Odisha but also make them environmentally
3
conscious leading them to be globally competitive over a period of time. Under the
ZED Certification Scheme, the Government of India is providing a financial support of
80%, 60% & 50% to Micro, Small & Medium Enterprises respectively on the cost of
assessment and handholding, with an additional 5% financial support to Women and
SC/ST entrepreneurs. It is proposed to extend the same level of financial support to
MSMEs undergoing ZED assessment/handholding on the balance cost, i.e. over and
above the financial support provided by Government of India. For example: An MSME
undergoing Desktop assessment, cost of which is Rs. 10,000/-, receives Govt. of India
support of 80%, which is Rs. 8,000/- The Government of Odisha will provide an
additional financial support of 80% on the balance cost (of Rs. 2000/-) which amounts
to Rs. 1,600. Hence the effective cost to the MSME will be Rs. 400/-. The same
formula will apply on the cost of all other components of the scheme.
The existing financial support by GoI is as follows:—
ZED
Certification
Scheme
Component
Costing
(INR)
Effective
cost for
MICRO
Enterprise
s @ 80%
(INR)
Effective
cost for
SMALL
Enterpris
es @
60%
(INR)
Effective cost
for MEDIUM
Enterprises@
50% (INR)
Registration
NIL
NIL
NIL
NIL
Online Self-
Assessment
NIL
NIL
NIL
NIL
Desktop
Assessment
10,000
2,000
4,000
5,000
Site
Assessment
80,000
16,000
32,000
40,000
Re-
Assessment *
40,000
8,000
16,000
20,000
Gap Analysis
and
Handholding *
1,90,000
38,000
76,000
95,000
Defence
Assessment *
40,000
8,000
16,000
20,000
TOTAL
3,60,000
72,000
1,44,000
1,80,000
Proposed
Govt. of
Odisha
Support (Max)
57,600
86,400
90,000
Final Effective
Cost to MSME
of Odisha
14,400
57,600
90,000
* Optional Component
Note: Additional 5% financial support for women & SC/ST entrepreneurs
4
6.9.2. In order to support the investment for the purpose, a one-time reimbursement of
expenses incurred by the applicant MSME unit on acquisition of Plant & machinery /
testing equipment for obtaining ZED ratings shall be provided in the following manner :
Sl.
No
Quantum of Assistance
To achieve ZED
Rating of
1.
@ 50% of expenses incurred on acquisition
of Plant & machinery / testing equipment
subject to an upper limit of Rs. 1.00 lakh to
achieve “ZED Bronze” from “No Rating”
Bronze
2.
@ 50% of expenses incurred on acquisition
of Plant & machinery / testing equipment
subject to an upper limit of Rs. 2.00 lakh to
achieve ZED Silver from ZED Bronze or
lower rating.
Silver
3.
@ 50% of expenses incurred on acquisition
of Plant & machinery / testing equipment
subject to an upper limit of Rs. 3.00 lakh to
achieve “ZED Gold” from ZED Silver or
lower rating.
Gold
4.
@ 50% of expenses incurred on acquisition
of Plant & machinery / testing equipment
subject to an upper limit of Rs. 4.00 lakh to
achieve “ZED Diamond” from ZED Gold or
lower rating.
Diamond
5.
@ 75% of expenses incurred on acquisition
of Plant & machinery / testing equipment
subject to an upper limit of Rs. 5.00 lakh to
achieve “ZED Platinum” from ZED Diamond
or lower rating.
Platinum
Note: This assistance is over & above the assistance prescribed under
ZED Scheme by Government of India.
A monitoring mechanism will be developed by the Directorate of Industries,
Government of Odisha, wherein the final installment of reimbursement of expenses
under this category (6.9.2) will be made only after the desired ZED rating is achieved
by the applicant MSME Unit.
7. The existing provision in Para. 9.6 shall be replaced with the following:—
“This Policy shall be effective from the date of its notification and
remain in force until the applicability of IPR-2015.”
5
8. The aforesaid amendments in the MSME Development Policy-2016 shall come
into force with immediate effect.
ORDER
Ordered that the Notification be published in an Extraordinary issue of
Odisha Gazette and copies of the Notification be forwarded to all Departments/ all Heads
of Department.
By Order of the Governor
L. N. GUPTA
Additional Chief Secretary to Government
Printed and published by the Director, Printing, Stationery and Publication, Odisha, Cuttack-10
Ex. Gaz. 1620-173+500