Creates Eco-System for Growth of MSMEs

Riding the crest of fast-paced economic growth, Haryana has emerged as an economic power house. Out to tap the potential of Micro, Small and Medium Enterprises (MSMEs) in employment generation, economic revival and boosting exports, the Haryana Government, led by the Chief Minister, Sh. Manohar Lal, has donned the mantle of a facilitator, promoter, advisor and Ànancer to ensure their holistic growth.

All stops have been pulled to handhold the existing MSMEs, create new units, enhance their competitiveness, and integrate their products with domestic as well as international supply chains to create a wider market for them. MSMEs constitute the cornerstone of Haryana’s policy on industrial development. A robust policy framework, backed by developmental interventions and setting up of dedicated directorate, has succeeded in creating an eco-system conducive to their creation, growth and success.

The visionary guidance of the Prime Minister, Sh. Narendra Modi, and able leadership of the Chief Minister has enabled the state to pursue policies to ensure all-round economic development with effective implementation at the ground level. Translating the vision of the Chief Minister to have a dedicated institution providing across-the-board and all-level facilitation to the MSMEs, the State Government has set up a Directorate of MSME.

‘‘The Haryana Government plans to set up a large number of clusters at the district level under MSMEs so as to provide maximum employment opportunities to the youth of the state. With this scheme, more marketing can be done at less cost”

- Manohar Lal, Chief Minister

‘‘Time has taught us that we must make ‘local’ the mantra of our lives. I request people to buy and endorse local products. We have done this before also with khadi and it worked very well. ‘‘We have to be ‘vocal’ for ‘local’. Not only we have to buy local products, but we also have to promote them.I have full conÀdence that our country can do this.’’

- Narendra Modi, Prime Minister

This makes Haryana take a seat on the high bench of exclusive group of leading states like Uttar Pradesh, Madhya Pradesh, Karnataka, Bihar and Tamil Nadu which have turned focus on the development of MSMEs by setting up dedicated state agencies. Notably, Haryana has been ranked among the top three fastest growing states as per the GSDP growth rates data released by Ministry of Statistics and Programme Implementation (MoSPI) in 2020.

Red carpet of incentives

The Haryana Government has rolled out a red carpet of incentives and taken several initiatives to ensure holistic development of the MSME sector in the state. “In view of the important role of MSMEs in the economic development of the State, we have extended several concessions. These include state guarantee for bank loans to MSMEs from Small Industries Development Bank of India, Àxing power rate at Rs . per unit for agriculture-based industries up to 20 KW, and pre-fabricated housing for labourers in the factories itself,” the Chief Minister said.

Besides, the State Government plans to set up a large number of clusters for MSMEs at the district level to provide maximum employment opportunities to the youth of the state. With this scheme, more marketing can be done at less cost.

Another landmark initiative seeks to create a pathway for the MSMEs products to enter the global market. The State Government has signed an MoU with ‘Walmart Vriddhi’ and ‘Haqdarshak’ company. In order to promote MSMEs apart from large industries, many important concessions have been given for investors under the ‘Haryana Enterprises and Employment Policy-2020’.

With the help of e-commerce companies like ‘Walmart’, the State Government will help in displaying the products of traditional weavers of rural areas, handlooms and other handicraftsmen at the international level.

Robust Policy Framework

Several interventions have been made to fuel growth of the existing MSMEs as well as to create new enterprises. These have been so designed as to equip the MSMEs to address they face in such Àelds as technology, market, facilitation support etc. Some of the key developmental interventions are:

Haryana Enterprises and Employment Policy 2020

With a view to enabling the MSMEs to ramp up production and scale up businesses, the Manohar Lal Government launched the path-breaking Haryana Enterprises and Employment Policy (HEEP) 2020. It replaced the very successful Enterprise Promotion Policy 20 , with new and scaledup incentives for the MSMEs. It has focus set on employment generation, entrepreneurship development, exports promotion and strengthening of the supply chain and infrastructure facilities

across the state to build and promote ‘Brand Haryana’. HEEP 2020, in conjunction with Haryana’s MSME Policy 2019, ensures that state support is provided to the MSMEs to facilitate their all-round development.

Technology Upgradation

Upgrading technology is of essence in industry, especially in MSMEs. With a view to enabling the MSMEs to technologically upgrade themselves, Haryana has sharpened focus on the ‘Cluster Development’ approach. The state is an active advocate and propagator of Government of India’s MSE-CDP scheme for the creation of Common Facility Centres (CFCs) in the state. The Haryana Government is actively engaged in implementation of six projects under the scheme with a commitment of Rs 67 crore by the Government of India out of which grant-in-aid of Rs 25 crore has already been received.

Taking further the approach of Cluster Development, the state has enhanced support under the Áagship ‘Mini Cluster Development Scheme’ from Rs 1.8 crore to Rs 4.5 crore as part of the Haryana Enterprises and Employment Policy 2020. While interventions under the scheme have already been undertaken in more than 40+ clusters since its inception, interventions in 16 clusters have been initiated in the last year only, after the inception of dedicated directorate. So far, the State Government has released support of Rs 31 crore for the creation of CFCs under the scheme.

Development of new enterprises

Under the leadership of the Chief Minister, the State Government is conceptualizing one-of-its-kind Block Level Enterprise Development Programme with renewed focus on new the creation of new enterprises. It aims at designing and implementing developmental interventions focused on micro and small enterprises at block level to give a thrust to sustainable employment and entrepreneurship opportunities.

Special emphasis has been laid on the promotion of locally relevant products and on providing an opportunity to state farmers to broaden their horizon and turn from producers to processors. While preliminary study has been completed to identify focused products across 140 blocks in Haryana, detailed plan for implementation of the programme is on the anvil.

To create a holistic food processing eco-system and enhance farmer income in Haryana, Haryana is implementing its ambitious Haryana Agri and Food Processing Policy 2018. Under the policy, 15 projects worth over Rs 195 crore have been approved with government grant component of Rs 28 crore, and private participation of over Rs 165 crore. These projects will beneÀt over 8,000 farmers in the state and help generate direct employment for over 2,000 persons.

Prime Minister’s Employment Generation Programme (PMEGP) is one of the leading programmes to promote rural employment in the country. The Directorate of MSME, being the nodal State Government agency, is leading implementation in the state. Under the scheme, more than Rs 65 crore has been disbursed as margin money generating employment for more than 16,000 persons in rural Haryana.

As part of the HEEP 2020, the State Government has also launched ‘Haryana Gramin Udyogik Vikas Yojna’ to promote rural entrepreneurship and balanced regional growth, the scheme offers an array of attractive incentives i.e. Capital Subsidy, Interest Subsidy etc. for micro enterprises in rural areas under the jurisdiction of gram panchayat.

State collaborations

The Haryana Government has been tirelessly working to enhance its outreach, to broaden the base of the beneÀciaries, and take them onboard with its initiatives, schemes and policies. In order to amplify these efforts, the State Government, under the guidance of the Chief Minister has formed strategic partnerships with various leading national and international players to assist the state in facilitating and strengthening different aspects of an enterprise’s value chain.

Some of the key collaborations across various functional areas will facilitate MSMEs access to markets, technology, Ànance and export promotion.

With a view to initiating focused conversations on digital enablement, empowerment and enhanced market access for MSMEs, the State Government has signed a Memorandum of Understanding (MoU) with leading national and international e-commerce players–-eBay, Power2SME and TradeIndia. Through these collaborations, the State Government intends to provide handholding and capacity building support to over 3,000 MSMEs, at district-level, across Haryana.

In order to facilitate MSMEs access to newer markets, the State Government has collaborated with Walmart and Flipkart to support MSMEs to grow their domestic and global markets through the Walmart Vriddhi Supplier Development Program (Walmart Vriddhi).

In order to fuel MSME growth and development by providing enhanced access to Ànance, the State Government has tied up with National Stock Exchange (NSE) and BSE to assist small and medium enterprises in raising capital through the SME exchange, i.e. NSE Emerge and BSE SME, respectively.

Additionally, the State Government has also partnered with SIDBI with the objective of development of the MSME ecosystem in Haryana, particularly focussing on areas such as equity support, interest subvention, resolution of stressed MSMEs, etc.

To provide Àeld-level handholding, facilitation & advisory support to MSMEs and traders, a network of District MSME Centres (DMCs) in each district has been set-up under the Directorate. This shall help in strengthening the State’s connect with the MSMEs and widen the communication channels for faster resolution of matters of importance.

The State Government has launched a unique online registration portal, i.e. Haryana Udhyam Memorandum (HUM), for all the industrial enterprises registered in the state of Haryana.

To facilitate recovery of delayed payment of micro & small enterprises (MSEs) of the State from their buyers located anywhere in India, Haryana Micro and Small Enterprises Facilitation

Council (HMSEFC) was constituted.

The Union Ministry of Food Processing Industries, under the Prime Minister’s visionary Aatmanirbhar Bharat Abhiyan, has launched a progressive Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme. The scheme aims to enhance competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry; promote formalization of the sector and provide support to Farmer Producer Organizations, Self-Help Groups as well as Producers Cooperatives along their entire value chain. Applications of 700+ enterprises are being processed under the scheme in the current Ànancial year.

Given the policy interventions and personal interest the Chief Minister has taken in their growth, MSMEs can look forward to a great future in Haryana.