Industry cluster in Mysore to strengthen MSMEs

Collateral-free loans up to Rs one crore to assist new projects

 Union minister of state for medium, small and micro enterprises (MSM) K H Muniyappa stated that Rs 16 crore is earmarked for cluster presently being set up in Mysore which will strengthen 45 MSMEs. 

Disclosing this to media here on Friday, the minister added seven clusters have been sanctioned for the State among which the one ready to operate in Mysore will be funded. Meanwhile, three to four other different clusters of engineering, auto, printing will be set up in Mysore.

The cluster development scheme, he observed, will empower MSMEs to compete with international standards. These clusters formed of minimum 20 industries may upgrade their power with aid from centre. They will be provided with 80 per cent of the cost of the project or Rs 15 crore, which ever is lesser. Various clusters across state will be set up, among which a few, like that of coir products will also assist farmers.

Under the collateral-free loan scheme, he explained, loans up to Rs one crore will be given to new projects under MSM enterprises and even to existing ones for further expansion by centre in association with the lead banks and others.

The centre will provide a guarantee of 85 per cent of the amount and banks will bear the 15 per cent.

The centre will also select 65,000 entrepreneurs from acrosss country for the loan which will be sanctioned within another three to four months after completion of procedures. The process is on and circulars have been sent to as many as 650 districts, he added.

Explaining about the Prime Minister Employment Generation Programme, he said, for a project of Rs 25 lakh, rural industries in general will get a subsidy of 25 per cent while women of rural areas will be benefitted with 35 per cent subsidy. In urban areas, industries will be facilitated with 15 per cent subsidy and women entrepreneurs with 25 per cent subsidy.

Muniyappa pointed out that centre will also assist new projects with a maximum of 15 per cent subsidy for their machineries and tools.

To encourage the khadi industry and self employment, centre will be assisting them with 20 per cent of production cost.

He said, MSMEs are now capable of exporting 40 per cent of the produce, which will be increased by further encouraging them with incentives and loans.

In a 15 acre of land near Bangalore airport, the minister said, training institute will be set up where entrepreneurs will be trained under different categories.

Ex-mayor Vasu, deputy director of MSME Varadaraju, KPCC general secretary Chandrappa, general secretary of Mysore Industries Association Suresh Kumar Jain and others were present.

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