Following the lines of the state's 'Vision 2023' document released last week, the Tamil Nadu budget has emphasised that the state economy would improve with more Micro, Small and Medium Enterprises (MSME), higher skilled labour and a push for entrepreneurship, Times of India reports.
Tamil Nadu, which has the highest number of MSMEs in India, will equip all District Industries Centres in the 32 districts with better infrastructure at a cost of 50 crore. These centres can then serve as a hub to promote MSME units.
"We expected multi-storied complexes in Guindy, Ambattur for MSMEs in the budget and a policy allocating 30% space for small industries in SIPCOT. But we are disappointed that it was not done," said K Gopalakrishnan, past honorary general secretary, Tamil Nadu Small and Tiny Industries Association. "However, infrastructure improvements will be a boost for us."
The government has also decided to train nearly 1,000 entrepreneurs under a new scheme. The 'New Entrepreneur-cum-Enterprise Development Scheme' (NEEDS) will help educated youngsters draw up business plans and tie up with financial institutions for their ventures. At least half the beneficiaries of this scheme will be women.
The beneficiaries will get term loans from banks or Tamil Nadu Industrial Investment Corp, a state sponsored financial institution. They will get a capital subsidy at 25% of the project cost not exceeding 25 lakh and soft loans with 3% interest subvention, or a subsidy on interest. The government has set aside 100 crore as capital subsidy and other assistance under the scheme.
The government will set up business incubation centres and training academies exclusively for small and medium industries at Elcot-promoted special economic zones in Chennai, Trichy, Coimbatore, Madurai, Tirunelveli, Salem and Hosur.
Though there is a demand for skilled labour, many educated youngsters remain unemployed due to a lack of vocational and soft skills.
So the state has earmarked 75 crore in the budget to train them. The government will invite private sector participation in establishing training centres to improve the skills.