Tag: MSME

Amit Mitra to lead Team Bengal at China expo

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State Finance, Industries and Commerce Minister Dr Amit Mitra will lead a delegation to the third China South Asia Business Forum and Expo to be held between June 11 and 16 at Kunming, China to showcase West Bengal as an investment-friendly state.

Promoting Bengal

The government would participate in the expo in a big way to showcase Bengal. The governor of Yunnan had earlier invited the West Bengal government officials to showcase the state in China.

The government will put up 28 stalls in the expo focusing on industry , tourism and food processing.

Dr Mitra will lead the state delegation along with senior officials of food processing, industries, tourism and micro, small and medium enterprises departments. WBIDC and industry representatives will also accompany him.

Bilateral ties

The state government is already working on a project to restore the old Chinatown in Tiretta Bazaar through preservation of the historic character of the place, by revitalizing the area into a street food hub and introducing a night market that could attract tourists from China to come and have a look at.

MoUs will also be signed between tour operators of Kunming and West Bengal that will help them exchange familiarization visits.

Already, the West Bengal Incentive Scheme 2015 has come into effect in consultation with travel and tour operators’ associations and industry stakeholders. Apart from usual incentives, provisions for granting tourism promotion assistance at the rate of 75% of VAT for five years and entitlement of additional floor area ratio for mega tourism units have come as a big boost to investment in the tourism sector.

Sister cities

Kolkata and Kunming are now dubbed as sister cities and there is already a direct flight between the two cities with flight timing of just over two hours. The frequency can also be raised.

This year, West Bengal tourism will be repositioned in the international and domestic tour and travel sector with a new brand logo. Having a state delegation led by the finance minister and senior bureaucrats and industrialists will only further help in showcasing the state in this sector.

Business made easy in Bengal: WB CM

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The chief minister’s office (CMO) organised a meeting with leading industry bodies and captains at Town Hall today. The basic talking point of the Town Hall meeting was “Business made easy in Bengal”.

Faster clearances

At the meeting, the Chief Minister announced that the state government will issue provisional certificate of clearance for projects within 15 days. She also announced that trade licenses issued in urban areas will now be required to be renewed every three years – she asked officials to make it 5 years – instead of one year.

The West Bengal Government said that mutation of land for industrial units could be done within three weeks and the land conversion could now be allowed a month. In an integrated initiative, the State has simplified much of the paper work and processes for setting up businesses in the State.

“We want healthy competition among companies in Bengal for more investment. We have started MSME assistance centres in every district. We have started e-VAT system,” she said.

Through amendments of relevant laws and time-bound commitment for clearances, the State government has on Monday said it ushered in easy ways of doing business.

The Chief Minister Mamata Banerjee assured business community that right from issuing trade licenses to sanctioning of building plans, every statutory sanction was to be delivered within prescribed timeline of between 15 to 30 days.

Stress on e-governance

Speaking on the occasion, Dr Amit Mitra, State Finance and Industry Minister, said, “WB CM took the initiative to use IT as a tool for governance. Bengal received award in e-governance for revenue and Kanyashree. Using IT as a tool for distributing benefits to girls registered under Kanyashree is a vision of WB CM.”

He added that Bengal is the only State in India to have a full e-treasury and all payments are made through e-process. He said the government was implementing Integrated Financial Management System.

The Chief Minister asked investors to invest in the seven upcoming theme townships at Asansol-Durgapur, Kalyani, Bolpur, Siliguri, Domjur, Baruipur. She also highlighted that the government has initiated a project worth Rs 37,000 crore to boost the textile sector.

Ease of doing business

Flanked by Ministers and Bureaucrats, the Chief Minister announced that from now on self-certification and self-attestation would be allowed in all transactions with the Government.

Some 400 relationship managers, newly appointed by the industrial development wings would facilitate businesses. Among other measures is the exemption from pollution control certificates in case of new electricity connection. As a commitment towards the right to services, the State will issue within 15 days “no-objection” certificate for building plan under the West Bengal Town Country (Planning and Development) Act. “If it is not issued within 15 days, then it would considered as deemed to be approved,” said Amit Mitra, State’s Finance Minister.

In case of industrial estates or parks, State government industrial development arms such as WBIDC, WBSIDC, WBIIDC and Webel have been delegated the power to sanction building plan for industrial units.

WB CM to meet captains of industry today

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The chief minister’s office (CMO) will organize a meeting with leading industry bodies and captains at Town Hall today.

The basic talking point of the Town Hall meeting will be “Business made easy in Bengal”. WB CM is also likely take stock of the Rs 2.43 lakh crore worth of investment announced during the Bengal Global Business Summit in January.

Focus on key sectors

It is learnt that industry, IT and MSME (micro, small and medium enterprises) departments have already prepared necessary notes for the meeting. Apart from these nodal industry departments, representatives from departments like power, labour, environment, water resources, urban development, fire, irrigation, land and panchayat will be present at the meeting.

The focus sectors identified by the state government include urban infrastructure and housing, IT (software and hardware), food processing, horticulture and floriculture, MSME and textiles, healthcare, education and skills, manufacturing, energy and infrastructure, hospitality and tourism, entertainment and financial services.

Captains of industry hail the move

P Roy, director general of Bengal Chamber of Commerce and Industry (BCCI), welcomed the development. “It is a very positive step taken by the chief minister,” he added.

MCC Chamber of Commerce assistant director-general Subhasis Roy said this step will boost the sentiment of industry. “The CM is doing the right thing. This will go a long way to attract investment in Bengal. The coordination between different departments is very crucial. This is what we need,” he added.

The director-general of Indian Chamber of Commerce (ICC), Rajeev Singh, also felt that it is a very welcome move from the chief minister.

Rs 26000 crore investment in MSME and Textile sector: WB CM

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West Bengal Chief Minister Mamata Banerjee said that her government had initiated a plan to invest over Rs 26,000 crore for the development of MSME and Textile sector.

She also said that a separate textile policy of state was being formulated by the government.

Replying to a question in the state Assembly, Banerjee said that under the plan MSME projects would be set up in joint ventures or through PPP model creating employment opportunities for six lakh people in the state.

The state government had earlier generated employment of 4.56 lakh people in the MSME sector in the last four years.

With this initiative there would be a massive improvement in the MSME sector and definitely the units like handloom, hosiery, zari and many other units, she said.

Replying to a supplementary, Banerjee said that since 2006 the previous Left-led regime had been able to set up only 49 MSME clusters with an investment of Rs 16,764 crore, but in the last four years her government set up 180 MSME units covering many districts with an investment of Rs 55,740 crore.

Describing development as a continuing process, the chief minister said that the state government has established synergies and offered comprehensive package to the investors in the MSME and textile sector.

With the setting up of new textile policy, the sector would also improve much faster. The state government is committed to promote MSMEs in the state by creating a sustainable financial ecosystem for the sector.

Considering the rapid growth of MSMEs in the state, the MSME & Textiles Department has already launched a Rs 200-crore Venture Capital Fund.

Replying to another supplementary, Ms Banerjee said that many more MSME clusters would come up in the state covering several districts to boost the sector.

 

Image courtesy: Anirban Mukhopadhyay

WB Govt to set up venture capital fund for MSMEs

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West Bengal Government is setting up Rs 200 crore as venture capital fund for Micro, Small and Medium Enterprises (MSME) during the forthcoming fiscal year.

Bengal is number one in the MSME sector and this fund is being created to provide equity capital to start-ups with innovative business models or new products, services and technology.  The key challenges the MSME start ups face is funding and with the creation of this fund, the Bengal Government wishes to address the issue. The enhanced equity base would now allow the small units to secure bank credit.

The Bengal Government is creating this fund in collaboration with Small Industries Development Bank of India (SIDBI).

The MSME section of the State Government has created an online platform through which business proposals shall be evaluated along with credit assessment and rating. It has tied up with the Indian Institute of Management, Calcutta (IIM-C) to conduct the assessments to assist with resources.

WB Govt to work with IIM-C and NSE to boost MSME sector

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The West Bengal Government will work in association with IIM-Calcutta and National Stock Exchange (NSE) to help firms after they avail the state’s Rs 200-crore venture capital fund.

The State Government had earlier in January proposed to create a Rs 200-crore venture capital fund for the small and medium industries. The aim was to help budding entrepreneurs and startup companies. The government had also proposed to develop applications and solutions related to cloud computing and mobile value added services.

It has now tied up with Small Industries Development Bank of India (SIDBI), which will provide 15% of the fund. While the state government will provide Rs 100 crore to the corpus, SIDBI will provide Rs 30 crore. The rest of the amount will come from other private investors. The fund will provide equity capital to the startups and 20% of the corpus will be earmarked for providing incubation support to such firms.

“We have tied up with IIM-Calcutta Innovation Park (IIP) to provide incubation support to these startups. They will help them through the entire process — from screening the proposals to suggesting changes to make them viable,” said the Secretary to the MSME & textiles department. The IIP has designated an IIM-C faculty and an alumnus for the purpose. The entrepreneurs can even apply online with their project and seek handholding. Around 40 projects have been submitted online in the last two months.

Given the fund requirement of the small and medium companies, the state has also tied up with the National Stock Exchange to help them raise money from the market. The idea is to encourage them to come up with an IPO, so that they can grow in a self-sufficient manner without depending on other agencies to help. National Stock Exchange will provide these companies with necessary support and know-how to take it to the level of coming up with an IPO.

In a bid to make the entire process simpler for the small and medium enterprises, state government has designed a website — www.msmebengalinvest.in — where an entrepreneur can log in and submit his proposals which will later be screened by the IIP. As part of the single window policy of the government, the state has also started websites through which an entrepreneur can get all necessary approvals and licences to start up a unit.

In the budget, the State has already tried to bring some respite to MSMEs by bringing a large chunk of it out of the ambit of compulsory appointment of chartered accountants. According to estimates, more than 10,000 new MSME units are registered in Bengal every year. While more than half of them are in the manufacturing sector, the rest are in the service sector. While it is difficult to quantify the units by turnover, most of these units have an investment of Rs 1 crore on an average.

Self Help Groups brought under Social Security in Bengal

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The West Bengal Chief Minister, Ms Mamata Banerjee took an innovative measure to help the ordinary people of the State.  While her decision to reach out to the unorganised and transport workers, street hawkers have been well appreciated, now, the State Government has decided to include the ‘Self Help Groups’ across the State Social Security Scheme.

West Bengal Chief Minister Ms Mamata Banerjee expressed that a lot of young boys and girls work in these organisations and the State must reach out to them for their welfare.

Earlier, the Self Help Groups of the State, which mainly comprised of women, did not get the benefits of the ongoing Social Security Schemes.

An exchequer worth Rs 100 Crore is being created by the Government to give loan to these groups who have difficulties in getting loans from recognised banks.  The loans given out by these banks normally come with a high rate of interest of 400%, whereas the State Government will give loans at 200% interest with the rest as subsidy.

After a meeting with various departments of the Government like Panchayat & Rural Development, MSME and other various Government officials, this scheme has been drawn up. Along with easy loans, the Government is also creating a fund worth Rs 60 Crore wherein people working in these organisations will get monetary help in case they meet with accidents while at work or become ill. Rs 1 Lakh will be given in case of accidental deaths or handicapped while at work and Rs 40000 if the person falls ill.

On reaching the age of 60, they will get an ex gratia amount between Rs 1-2 Lakh. For this the individual workers would be required to pay Rs 30 only per year. The Accounts Department of the State Government has been instructed to draw a plan so that from May 2015 onwards enrollment for this Scheme can be started. Over 50 Lakh Self Help Groups in the State will benefit from this Scheme.

Common man, SMEs – big gainers in West Bengal Budget 2015-16

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From slashing stamp duty for properties to raising VAT exemption limits, West Bengal Finance Dr Amit Mitra took every step to woo the middle class in this year’s state budget.

Dr Mitra has reduced 1% additional stamp duty on properties that are valued between Rs 30 lakh and Rs 40 lakh. The proposed stamp duty for properties in this range will be 6% instead of 7% earlier. Industry sources say it will translate into a saving of around 14% for a buyer.

A property priced at Rs 40 lakh was earlier attracting a stamp duty of Rs 2.80 lakh. But with the new rates in place, the buyer will save Rs 40 thousands, or around 14%, on the earlier stamp duty .

Jitendra Khaitan, chief managing director of Pioneer Properties and board member of National Realtors’ Association, felt that the decision would offset service tax burden on the buyer to a large extent. “A reduction in costs always sends right signals across the industry . A saving of Rs 40,000 on stamp duty will encourage buyers,“ he said.

Dr Mitra has also tried to address concerns of the small and medium business units he had spoken to at length a month before the budget.He has increased threshold limit of VAT exemption for units with turnover of Rs 5 lakh to Rs 10 lakh.According to the finance minister, around 20,000 businessmen will now go out of the VAT ambit after the new announcement. Industry experts said the small businessmen used to get reimbursements for the VAT earlier. But with the new exemption in place, they will no more have to wait till the money is reimbursed.

Respite has also been given to business units which have turnover up to Rs 5 crore. These units will not have to hire chartered accountants any more. The state department of micro, small and medium enterprises has been running campaigns for ease of doing business in Bengal for the past six years. By bringing a large chunk of MSMEs out of the compulsory appointment of chartered accountants and promoting self-assessment, the Minister has also tried to encourage the process.

The State MSME secretary said more than 10,000 new MSME units were being registered in Bengal every year. While 60 per cent of them are in the manufacturing sector, the remaining are in the service sector. While it is difficult to quantify the units by turnover, most of these units have an investment of Rs 1 crore on an average.

Dr Mitra also tried to encourage the non-cinema entertainment industry in the state by reducing amusement tax. Events such as musical concerts, magic shows and dance will now be brought under the exemption net. Dr Mitra has proposed to enhance exemption limit from Rs 60 earlier to Rs 100.

Economist Abhirup Sarkar feels that there is little room for giving relief to the middle class in West Bengal. “In Bengal, state taxes are much below the national average. Giving further relief is a challenging task for a Finance Minister. He (Dr Mitra) has tried to create some room even in that short space,“ he said.

This is a budget for Maa, Mati, Manush: WB CM on Bengal Budget 2015

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West Bengal Chief Minister Ms Mamata Banerjee and Finance Minister Dr Amit Mitra held a post-Budget press conference at West Bengal Assembly.

The Chief Minister said, “Today the West Bengal Budget 2015-16 was presented by Dr Amit Mitra. This is a people’s Budget. This is a Budget for Maa, Mati, Manush. West Bengal is the only State facing huge debt-burden. We were asked to wait for 14th Finance Commission Report. But it is silent.”

Highlights of the Chief Minister’s reaction:

  • Only Bengal is suffering from the debt made by the previous Government
  • We want to tell the Central Government to write off the debt created by the previous Govt
  • In spite of our financial constraints, we are giving cycles to 40 lakh students to make them self sufficient and to decrease dropout rates
  • Stipend for our Kanyashree girls increased from Rs 500 to Rs 750
  • Tax reliefs, made allotments in rural and urban developmental works, for women and children
  • More than 5000 people decided to be employed in police at a Cabinet Meeting today
  • Why should we be penalized for the sins of the previous Government? We have been suffering for last 3 years
  • We have waited for the 14th Finance Commission for 3 years, we have been promised of loan waiver, but 14th Finance Commission is silent
  • If other states were in trouble, would not the Center have helped them?
  • I’ve spoken with the current Union Finance Minister thrice, I spoke to the previous Prime Minister and the previous Finance Minister, they told us to wait for 14th Finance Commission report
  • We believed and waited for the 14th Finance Commission recommendations, but they are still silent

 

Highlights of the WB Finance Minister’s reactions:

  • We are watching for the aggregate amount that Centre will be allotting for WB, inclusive of the grants
  • We are watching out for the aggregate amount that Centre will be allotting for WB, inclusive of the grants
  • Fiscal Deficit has decreased continuously over the years and Revenue Deficit has also decreased. The 14th Finance Commission has praised our performance.

 

Click here for the complete Bengal Budget 2015 highlights. 

How to obtain a Micro Business Credit Card

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The West Bengal Government has successfully launched a Micro Business Credit Card, the first of its kind in India, to facilitate small and medium business entrepreneurs of the State.

Entrepreneurs will now be able to avail cash credit or loan up to Rs 5 lakh for their business activities, even without collateral security. The State Bank of India has extended support to the Government of West Bengal in this venture.

A fund of Rs 200 crore has been set up for facilitation in Bardhaman, Durgapur, Asansol and other places to speed up the clearance process for the business credit cards.

For details on how to apply for the Micro Business Credit Card click here