+
Gujarat’s Low Utilization of Central Funds for MSME Development Raises Concerns
ECONOMY & POLICY

Gujarat’s Low Utilization of Central Funds for MSME Development Raises Concerns

Despite being a leading state for micro, small, and medium enterprises (MSMEs), Gujarat has been criticized for its poor utilization of central government grants meant for MSME development. According to official data, Gujarat received Rs 5 crore for preparing a Strategic Investment Plan (SIP) and Rs 47.06 crore under the Raising and Accelerating MSME Performance (RAMP) program from the central government. These programs, launched by the Prime Minister on June 30, 2022, are aimed at scaling MSME operations and fostering innovation.

As of June 30, 2024, Gujarat has utilized only Rs 0.66 crore of the Rs 5 crore allocated for SIP and has not used any funds from the Rs 47.06 crore earmarked for RAMP initiatives. Government sources stated that the preparation for SIP is still underway, and efforts are being made to expedite its implementation.

The SIP scheme aims to enhance the capacity and outreach of MSMEs, with a focus on improving market access and scaling up guarantees to women-owned micro and small enterprises. While 25 states and union territories have already received grants under RAMP, Gujarat’s low utilization of funds is raising concerns about the state's ability to fully capitalize on these opportunities.

Despite being a leading state for micro, small, and medium enterprises (MSMEs), Gujarat has been criticized for its poor utilization of central government grants meant for MSME development. According to official data, Gujarat received Rs 5 crore for preparing a Strategic Investment Plan (SIP) and Rs 47.06 crore under the Raising and Accelerating MSME Performance (RAMP) program from the central government. These programs, launched by the Prime Minister on June 30, 2022, are aimed at scaling MSME operations and fostering innovation. As of June 30, 2024, Gujarat has utilized only Rs 0.66 crore of the Rs 5 crore allocated for SIP and has not used any funds from the Rs 47.06 crore earmarked for RAMP initiatives. Government sources stated that the preparation for SIP is still underway, and efforts are being made to expedite its implementation. The SIP scheme aims to enhance the capacity and outreach of MSMEs, with a focus on improving market access and scaling up guarantees to women-owned micro and small enterprises. While 25 states and union territories have already received grants under RAMP, Gujarat’s low utilization of funds is raising concerns about the state's ability to fully capitalize on these opportunities.

Next Story
Infrastructure Transport

Second Hebbal Flyover Loop to Open by November

Karnataka Deputy Chief Minister DK Shivakumar on Monday announced that the second loop of the Hebbal flyover, connecting Esteem Mall to Mekhri Circle, will be operational by November. The new addition is part of a larger effort to ease traffic congestion at one of Bengaluru’s busiest junctions.The announcement came as Shivakumar inaugurated a new flyover loop connecting Outer Ring Road to Bellary Road. Built at a cost of Rs 800 million, the 700-metre ramp increases the number of lanes on the Hebbal flyover from two to six. Once the second loop is completed, the total project cost will reach ..

Next Story
Infrastructure Transport

PM to Inaugurate Aunta–Simaria Highway Project with Six-Lane Ganga Bridge

Prime Minister Narendra Modi will inaugurate the 8.15-km Aunta–Simaria highway project on NH-31 in Bihar tomorrow. The project includes a 1.86-km six-lane extradosed cable-stayed bridge across the Ganga, constructed at a cost of over Rs 18.70 billion. The new link will connect Mokama in Patna district with Begusarai, easing traffic congestion and reducing travel distances for heavy vehicles that were earlier diverted due to the closure of the old Rajendra Setu.With a width of 34 metres and advanced design features, the bridge is one of India’s widest of its kind and is built to withstand h..

Next Story
Infrastructure Urban

Allcargo Launches 1.5 Lakh sq ft Built-to-Suit Warehouse in Bengaluru

Allcargo Logistics, part of the Allcargo Group, has unveiled a Grade A built-to-suit (BTS) warehousing facility for a Swedish multinational in the electrification sector at Alur, Nelamangala, near Bengaluru. Developed under Allcargo Supply Chain (ASCPL), the 1.5 lakh sq ft facility will handle storage, distribution, and management of electrical components, serving as the company’s largest warehouse in India.Strategically located for superior connectivity, the facility is designed with multi-tier shelving, heavy-duty racking, customised handling equipment, and advanced scanning systems to ens..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?