The modified version of 'Rejuvination, Modernisation and Technology Upgradation' (REMOT) scheme of Coir Board would pave the way for modernising the sector at the micro level, Union MSME Minister Kalraj Mishra said today.
"REMOT is a unique scheme which provides for 40 per cent government subsidy for setting up of modern coir units in the spinning and tiny sectors of the industry," he said after launching the modified scheme at the 'Conference on MSME Funding-Opportunities and Challenges and New Initiatives in Coir Sector' here. The meet was jointly organised by the Confederation of Indian Industries and Coir Board.
he Minister said there was a lot of inadequacies and problems in achieving the target while implementing the scheme during the 11th Plan period. "One of the constraints faced by the beneficiaries was the non-availability of funds for working capital. In the revised scheme, I am glad to inform that the working capital assitance has also been subtly incorporated. The total outlay of the project has also been doubled from the earlier amount of Rs five lakh to Rs 10 lakh," he said.
Considering the difficulties faced by the beneficiaries in arranging working capital, a component of 25 per cent on the project cost has been added as working capital, he said. It was the only credit-linked subsidy scheme available in coir sector with 55 per cent bank loan, 40 per cent subsidy from the Centre and 5 per cent beneficiary contribution, he added.
Stating that MSMEs were the backbone of the country's economy, he said the sector contributes 7.5 per cent of the country's GDP and provides livelihood to more than 60 million workers. Though the government schemes of MSMEs were aplenty, lack of proper awareness check entrepreneurs from utilising it, he said adding that skill development and technology upgradation were necessary for the Chairman of Coir Board Surendra Nath Tripathi and Senior Vice-President of National Stock Exchange of India ltd Ravi Varanasi were also present.