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Kerala to Roll Out State-supported Insurance Scheme for MSMEs

In Business, Kerala
June 28, 2023
In a major boost to the Micro, Small and Medium Enterprises (MSME) in Kerala, Minister for Law, Industries & Coir P.Rajeeve today announced that an insurance scheme for the units in this segment will be rolled out soon, with the State Government bearing 50 per cent of the premium with a monetary cap.

THIRUVANANTHAPURAM:
In a major boost to the Micro, Small and Medium Enterprises (MSME) in Kerala, Minister for Law, Industries & Coir P.Rajeeve today announced that an insurance scheme for the units in this segment will be rolled out soon, with the State Government bearing 50 per cent of the premium with a monetary cap.

Inaugurating the International MSME Day celebrations here, Rajeeve also unveiled a clutch of other schemes that will rev up the MSME sector considering its vital role in the state’s economic development. The event was organised by the Department of Industries and Commerce in association with Directorate of Industries and Commerce, Kerala Bureau of Industrial Promotion (K-BIP) and Kerala State Industrial Development Corporation (KSIDC).

The Minister said government will provide Rs. One lakh each to 1,000 MSME ventures of more than three years of existence for preparing scaling up projects. As part of this, up to Rs. Two crore will also be given as capital investment for approved projects, Shri Rajeeve said.

“The insurance scheme and other projects in the offing will substantially help the MSME sector, especially the budding enterprises, Rajeeve said.

As part of the ambitious One Local Body One Product (OLOP) project, launched during the ‘Entrepreneurship Year,’ the Department of Industries and Commerce will provide Rs. 50,000 each to Local Self Government Institutions (LSGIs) to meet the expenses for preparing the detailed project reports (DPRs).

The government also planned to institute annual awards for the best MSME unit and panchayat. Developing a software that can detect the problems being faced by MSMEs in their functional areas is under active consideration, he said.

Aiming at encouraging entrepreneurship at a young age, a proposal to grant Campus Industrial Park status to engineering colleges having at least five acres of land at their disposal is on the anvil. Chief Minister Pinarayi Vijayan has given in-principle approval to the scheme and discussions will be held with Higher Education Department to work out the details, before its official launch in July, the Minister informed.

Rajeeve said MSME sector has made the state proud through the outstanding achievement of starting around 1,39,840 ventures last year. Sustaining the momentum, as many as 4,184 new enterprises have been added so far this year.The initiative has succeeded in boosting the confidence of entrepreneurs.

Presiding over the function, Transport Minister Antony Raju said the government has implemented novel ideas to promote ‘Made in Kerala’ products, in which MSMEs have immense possibilities.

Chief Secretary, Government of Kerala, Dr. V. P. Joy, who was the Chief Guest, said the government has ushered in an industrial revolution in the state, which enabled MSMEs to make major strides.

Joy, who is retiring from service by this month-end, was felicitated by Rajeeve on the occasion.

In his address, Principal Secretary, Industries, A. P. M. Mohammed Hanish, said coordination of various departments and LSGIs is important for further strengthening the MSME sector.

Director, Industries and Commerce, S Harikishore, welcomed the gathering.

International MSME Day is celebrated to honour the role of MSMEs in achieving the Sustainable Development Goals (SDGs).

Officer on Special Duty, Industries, Anie Jula Thomas; SLBC Kerala Convenor S. Premkumar; RIAB Chairman Dr. R. Ashok; Kinfra Managing Director Santhosh Koshy Thomas; KSSIA State Vice President Fazeeludeen; CII Kerala Representative Ajay George Varghese; and TiE Kerala President Damodar Avanoor were also present.

After the inaugural session, Joint Director, Directorate of Industries and Commerce, Rajeev G gave a presentation on “Strength of MSME Ecosystem in Kerala.”

A panel session on “MSME Ecosystem of Four Key Sectors and Way Forward” was also held on the sidelines of the programme. Moderated by Director of Trinity College, Arun Surendran, the panellists included Pius Varghese, CEO of Vinvish Technologies (Defence & Aerospace); Bipha (Ayurveda and Biotechnology) CEO Ajay George; Keltron (ESDM) Executive Director Hemachandran; and Terumo Penpol (Medical Devices) Innovation & Development-Head Shinu Nair.