Assam Govt signs two MoUs for MSME, entrepreneur sector

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The policy is an initiative in making Assam a regional logistics hub to augment the economic development of the state.
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Assam Govt signs two MoUs for MSME, entrepreneur sector
Assam Govt signs two MoUs for MSME, entrepreneur sector

Guwahati: Chief Minister Himanta Biswa Sarma ceremoniously launched Assam Logistics and Ware Housing Policy 2022 at an MSME conclave held at Assam Administrative Staff College in Assam on Monday.

The policy is an initiative in making Assam a regional logistics hub to augment the economic development of the state.

In the same conclave, in presence of Chief Minister Sarma, the Government of Assam entered into an MoU with CGTMSE for ease of financial access for micro and small enterprises.

The government signed another MoU with SIDBI Venture Capital for the Assam Start-up venture fund.

The SIDBI Venture Capital Fund has Rs. 200 crores. The State Government will provide Rs. 100 crore, SIDBI will contribute Rs. 50 crore and the remaining contributors will contribute Rs. 50 crore.

CM termed the day a red-letter day for the industry sector of the state as the MoUs would lead to rapid industrialization and revamp of the MSME sector.

He said that the collaboration with Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) aims at providing additional guarantee coverage for the loans given by lending institutions to the Micro and Small Units in Assam.

“The scheme 80 perfect of the guarantee coverage of loan will be provided by CGTMSE and balance 20 perfect coverage would come from State Government.  Referring to SIDBI’s estimate, corpus support of Rs. 100 Crore will lead to a portfolio creation of Rs. 5000 Crore and the yearly fund requirement from State Government would be around Rs. 22 Crore to Rs. 26 Crore in the next three years”, CM added.

 Sarma further added that “Under another MoU signed with SIDBI, the SIDBI Venture Capital Fund (SVCL) intends to work as Investment Manager for the proposed Assam Start-up Venture Capital Fund. SIDBI through its subsidiary, SVCL as the partner for the Assam Start-up Venture Capital Fund, shall facilitate the development of a comprehensive plan in association with the State Govt for an organized development and growth of the Start-ups including MSMEs in the State. SVCL shall establish Assam Start-up Venture Fund with a total corpus of Rs. 200 crores.”

Sarma also appealed to young entrepreneurs to boost their efforts to develop a robust MSME ecosystem in Assam.

He said that in view of today’s cut-throat competition in the consumer market, it is high time that MSMEs must modernize their applications and improve the quality of products which are essential for survival in the national and international markets.

Chief Minister Sarma said that in the state there are more than 66,000 industries that contribute 29% to the state GDP. Out of these industrial units, 88% are Micro, and 11.5% are Small and Medium industries. This means that MSMEs constitute 99.5% of the industrial sector of the State.

He also informed that from 2016 to 2021, under the present BJP-led coalition government, 32,770 MSMEs were established in Assam. Out of these, 13,440 enterprises are engaged in the production sector where 1,30,294 youths have got employment.

The Chief Minister also said that as per the State government’s vision to transform Assam into an Atmanirbhar state, the MSMEs have a very important role to play. The MSMEs must nurture themselves to emerge as big industries and inspire the new generation towards entrepreneurship. In other words, in making the youth from job seekers to job creators, the MSMEs must set an example for the new generation to follow. He also called upon the youth of the state to come forward and take the benefits of the MoUs signed today.

Industry and Commerce Minister Bimal Bora, CMD SIDBI  S. Ramann, Principal Secretary to the Chief Minister Samir Kumar Sinha, and other senior officers of the Industry department, dignitaries from the MSME sector were present on the occasion.

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