By TwoCircles.net Staff Reporter,
Guwahati: Assam Chief Minister Tarun Gogoi unveiled the Angel Fund floated to help first generation entrepreneurs and skilled youths aspiring to set up micro and small enterprises in the state on Friday.
Unveiling the special fund at a Conference of General Managers of District Industries & Commerce Centres (DICCs) at the conference room of Assam Administrative Staff College, Chief Minister Gogoi said 80 per cent of the loan being extended to the first generation entrepreneurs and skilled youths would help them to set up their own ventures and to become self-independent.
Gogoi said that the Government would increase the maximum loan amount under the scheme so that the first generation entrepreneurs and skilled youths engaged in traditional industries can expand their businesses in a big way. “Our Government will raise the maximum loan amount under the scheme from the existing Rs 5 lakh so that the young entrepreneurs can go in for expansion of their businesses in a big way. Today’s unveiling of the scheme is just a beginning. We have to go on a Mission Mode for the overall growth of the MSME sector in the State,” he added.
The Chief Minister stressed on the need for proper counselling of the first generation entrepreneurs so that they could manage their business affairs efficiently enabling them to make repayment on time. “As the first generation entrepreneurs would be making foray into trade, they need proper guidance for managing their venture successfully,” he added.
Gogoi said the MSME sector has to play a major role in solving the unemployment problem in the State. “The MSME sector has to play a bigger role in creating employment opportunities given the fact that there is less scope of big industries coming to the State because of non-availability of required land and limited scope of white-collar jobs,” he said.
The Chief Minister announced a special scheme for the traditional and indigenous industries in the State. “Our Government will come up with a new scheme to promote the traditional industries such as bell metal, shital-pati, ornaments, bamboo, handloom and handicrafts. We will reach out to the artisans engaged in traditional industries in a big way,” he said. At the same time, the Chief Minister underscored the need for modernising the traditional industries to cater to the needs of the customers.
Gogoi said the State’s economy would be further augmented if Assam’s green economy in the form of forest resources, aromatic and medicinal plants together with bamboo and rubber are harnessed to the optimum level. “Agriculture and Industries have to go hand-in-hand to bring about a sea change in the State’s economy,” he added.
Lauding the achievements of the Industries & Commerce Department, Gogoi said that the State has made significant progress in different sectors despite the bandh syndrome in the State. “The bandh culture has adversely affected the economy of the State by putting a spanner in the wheels of development. If the wheels of development come to a halt, how can one generate resources and employment? The advocates of the bandh culture must ponder over this,” he quipped.
Speaking on the occasion, Minister for Industries & Commerce, Pradyut Bordoloi said the special Angel Fund would provide the much-needed impetus to the first generation entrepreneurs and skilled youths to set up industries on their own.
Bordoloi said added thrust has been accorded to the MSME sector in the State’s Industrial & Investment Policy, 2014 given the fact that it can generate employment opportunities to a great extent.
The Industries & Commerce Minister said his department has conducted a resource mapping in the State to identify the industries that can grow based on the locally available raw materials and to create a pool of skilled manpower required for the industries. “Plans are on the anvil to develop the inherent skills in our youths and to enhance their capacity building through multi-disciplinary skill development programme,” he said.
Bordoloi said the department would set up multidisciplinary skill development training centre in each of the 219 development blocks in the State. “We have identified about 50 skilled disciplines that are in great demand,” he added.
The Industries & Commerce Minister exhorted upon the general managers and field officers of DICCs to create an industry-friendly environment in the State for more investments on the industrial front. “We have to create an industry-friendly atmosphere and a hassle-free process to ensure quick investments in the State,” he said adding that the State has received proposals worth Rs 20,000 crore.
Giving an overview of the industrial scenario in the State in the past three years through a power point presentation, Additional Chief Secretary, Industries & Commerce, RT Jindal said that the State has achieved a 6.95 per cent growth in the manufacturing sector as against the all-India average of 0.24 per cent while in the service sector it has attained a growth of 15.31 per cent as against the national average of 14.20 per cent at constant price 2004-05. Jindal further said there have been huge investments to the tune of Rs 1,774 crore in the MSME sector in the past four years. He also said that Assam stood fourth amongst all the States insofar as the rate of implementation of investments is concerned; first in the rate of growth of establishments at 100.17 per cent and first in the rate of growth of employment at 78.84 per cent (2005-13) as per Economic Census, 2013. Under the Prime Minister’s Employment Generation Programme, 10,073 projects are under way in different sectors, the highest among all the States and Union Territories, he pointed out.
Jindal requested the financial institutions to increase the institutional credit to MSMEs from the existing 40 per cent. He urged the general managers of DICCs to attend meetings of district level credit committee regularly and to submit utilisation certificates on time.
Commerce & Secretary, Industries & Commerce, Rajesh Prasad while outlining the salient features of the Angel Fund, said that it would help to usher in inclusive growth in the MSME sector with focus on skilled youths, women, physically handicapped persons and SC/ST. “A maximum loan amount of Rs 5 lakh at only 5 per cent interest per annum with no interest to be charged during the moratorium period for maximum 10 months would be extended for setting up micro enterprises. Moreover, 80 per cent of the project cost for existing units and 85 per cent for new units without mortgage are being offered under the special fund,” he added.
Chairman, Assam Gramin Vikash Bank, Shio Shankar Singh said the bank with its 398 branches across the State would be able to ensure cent per cent implementation of the scheme.
Earlier, Commissioner & Secretary, Industries & Commerce, Nilufar Ali Hazarika delivered the welcome address.
An MoU was signed by the Commissioner & Secretary, Industries & Commerce, Rajesh Prasad on behalf of Government of Assam and Chairman, Assam Gramin Vikash Bank, Shio Shankar Singh on operation of the Angel Fund scheme in presence of the Chief Minister, Minister for Industries & Commerce, general managers of DICCs, heads of financial institutions, State PSUs, KVICs and other organisations.