New MSME Policy 2024 launched by Telangana Chief Minister Revanth Reddy

Current Context: Telangana Chief Minister Revanth Reddy recently unveiled the MSME Policy 2024 on September 18, 2024. This policy aims to significantly boost the Micro, Small, and Medium Enterprises (MSME) sector in the state.

• Here are some key highlights:
• Financial Support: The government has allocated ₹600 crore over the next five years to support MSMEs.
• Key Focus Areas: The policy addresses six critical areas: land acquisition, finance, raw materials, skilled labour, market access, and technology.
• Incentives: Special incentives include a 50% subsidy on land costs for SC/ST entrepreneurs and a 25% subsidy for other MSMEs. Women entrepreneurs receive an additional 20% subsidy.
• Industrial Parks: Five out of ten new industrial parks will be exclusively for MSMEs, with one park reserved for women-owned enterprises and another for innovative start-ups.
• Technological Advancement: Establishment of a ₹100 crore Yantram Fund to support MSME adoption of new technologies.
• Employment and Skills: Initiatives like the Telangana Skilling University and the Digital Employment Exchange of Telangana (DEET) aim to enhance the skill set of the workforce.

This policy is part of Telangana’s broader goal to become a $1 trillion economy.

Question:

1 What is the total financial allocation made by the Telangana government to support MSMEs under the MSME Policy 2024?

• A) ₹500 crore
• B) ₹600 crore
• C) ₹700 crore
• D) ₹800 crore

Answer: B) The government has allocated ₹600 crore over the next five years to support the MSME sector under this policy.