Declaration of Chief Minister sanctioning Rs.289 crore COVID package to boost MSMEs is far from truth.

 

Declaration of Chief Minister sanctioning Rs.289 crore COVID package to boost MSMEs is far from truth.

No such information is available with Govt., exposed under RTI

 Dear friends

 On 16.12.20, Govt. of Odisha made a press  release which  was  covered  and highlighted  in almost all news papers  that Chief Minister Naveen Patnaik approved  Rs. 289.42  crore package for  the pandemic-hit Micro, Small and Medium enterprises ( MSMEs). While approving, the Chief Minister declared that the Package comes with assistance like interest subvention, top-up subsidy , reimbursement  of state GST and waiver of annual institutional maintenance  charges.  The Package will benefit several entrepreneurs, mostly women  and those  from weaker sections of society  in the MSME sector  which faced huge crisis due to unexpected  challenges  of COVID-19.

 I had a little  bit  doubt  about  this  declaration.  I have  witnessed many times false information released  by Govt. of Odisha  to media  and media without verifying authenticity  of  information simply  highlighted it in their front page  and as breaking news  in electronics media.  

 On 12.5.21, I had  filed RTI Application  to the PIO, Dept. of MSME , Govt. of  Odisha  seeking following information  in my usual pursuit of verifying authenticity of information declared  by Chief Minister  and  highlighted  in media.

i.  Date  on which  Rs. 289  cr  sanctioned  as  per  the  declaration of Chief Minister  and its  purpose

ii.  Details of  source  from which  this  amount  was  sanctioned.

iii. List  of  the  entrepreneurs  which   have  benefitted  under  this  package ,  details of  amount  released  to  each of them  and purpose  like  interest  subvention, top-up  subsidy , reimbursement  of state  GST ,  waiver  of annual  institutional  maintenance  charge.

iv. Provide  total amount  already  utilized  by May 21 .

 RTI Application was  forwarded to the office of Director of Industries  to supply  the  information.  On 24.6.21, the PIO, Director of Industries  vide letter  No.  Estt-VIII-RTI-54/2021 .No. 4686  supplied  the  following  information.

i.  Date  on which  Rs. 289  cr  sanctioned  as  per  the  declaration of Chief Minister  and its  purpose.	Top-up Subsidy  under Prime Minister’s Employment Guarantee  Programme  amounting to Rs. 27 crore  is sanctioned  vide   no. 202019136545 dt. 5.2.21  and  communicated vide Government  tn MSME  Department  letter  number  892  dated 5.2.21  declared  by Hon’ble  Chief Minister , Odisha  under COVID package
ii.  Details of  source  from which  this  amount  was  sanctioned	40- Demand  Number  for Micro, Small  & Medium  Enterprises  Department -2851 –VILLAGE AND SMALL  INDUSTRIES  -00-102-SMALL SCALE INDUSTRIES -403053-000-Prime Minister’s Employment  Generation  Programme -21-SSS—1-voted -2-District  Sector in the R.E. for the year 2020-21.
iii. List  of  the  entrepreneurs  which   have  benefitted  under  this  package ,  details of  amount  released  to  each of them  and purpose  like  interest  subvention, top-up  subsidy , reimbursement  of state  GST ,  waiver  of annual  institutional  maintenance  charge.	List of 3577 beneficiaries  is  attached.
iv. Provide  total amount  already  utilized  by May 21 .	No  information was  supplied.

Besides  that the PIO has also provided  that as per the declaration of Hon’ble  Chief Minister’s COVID package, an amount of Rs. 5.00 crore  has been sanctioned by MSME Department , Govt. of Odisha  under Pradhan Mantri  Formalisation of Micro Food processing  Enterprise ( PMFME) during the year 2020-21.  Vide issue no. 1363 dt. 18.2.21.  This amount has been drawn  and transferred  to APICOL  as State Nodal Agency ( SNA)  under PMFME for providing  additional  15% top-up subsidy  to the sanctioned beneficiary  under credit linkage  scheme  of PMFME.

  Rs. 32.00 crore  have been disbursed  to 417 units towards reimbursement of net SGST / reimbursement  of VAT  and interest  subsidy  under the COVID -19  Package  during the year FY 2020-21.

 In another  Reply , the Additional Director of Industries ( Hqr) supplied  that  “ Due  to COVID -19, as per the  special package announced  by Hon’ble  Chief Minister for MSME sector, there is a target of State Government  to provide  interest subvention  of Rs. 108 crore  to the account assisted  under ECLGS ( Emergency Credit Line Guarantee  Scheme @ 2% for men and 5% for women  enterprises  for  the year 2020-21 , which  will be  effective  when  the moratorium is over. It  means  this amount  has not been  released  to any entrepreneur.

 Analysis

A.  It is  proved   that   news  about Chief Minister sanctioning Rs.289 crore COVID package to boost MSMEs following  Govt. press  release  is   completely  false. Because  the  PIO  precariously failed to   supply  any  information about  it.

 B.   Only an  amount  of  Rs. 64  crore  has been  disbursed as COVID package to 417 enterprise Units  and 3577  entrepreneurs.  Out  of it, An amount  of Rs. 32 .00 crore  is central Govt. fund  released  by Govt. of  Odisha  under Prime Minister’s Employment Guarantee  Programme  and PMFME.

 C.   An amount    of Rs. 108 crore  has been earmarked  but not  disbursed by Govt.  to provide  interest subvention  to the account of enterprises   assisted  under ECLGS ( Emergency Credit Line Guarantee  Scheme). 

    
Pradip Pradhan

        M- 9937843482 

         Date- 28.6.21

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