Rajasthan will invest Rs 10,000 crore to create 20,000 new MSMEs and 1 lakh jobs.

The Rajasthan government is planning to invest Rs 10,000 crore to facilitate the establishment of 20,000 new Micro, Small, and Medium Enterprises (MSMEs) in the state, aiming to generate employment for 1 lakh people. This initiative is spearheaded by Balwant Singh Ligree, the Executive Director of the Rajasthan Financial Corporation (RFC), an organization founded in 1955 to provide long-term loans to MSMEs at lower interest rates.

Ligree disclosed that RFC has already granted approximately Rs 8,813 crore in loans to 84,421 MSMEs. RFC operates 20 active schemes to support MSME financing, with the Yuva Udyamita Scheme being a prominent one. This scheme offers loans up to Rs 5 crore, with an interest rate of 5.5% for loans up to Rs 1.5 crore and 10% for amounts exceeding Rs 1.5 crore. It caters to entrepreneurs below the age of 45 with higher secondary education.

RFC provides various other schemes, including Saral, General term loan scheme, and more, covering purposes like land acquisition, mechanization, and windmill establishment. These loans are primarily available to industries situated in Reco or urban areas.

The state government is also set to offer several relaxations for MSMEs, including support at the time of incorporation, financial aid, technical upgrading, and entrepreneurship development. Additionally, they have established export and trade promotion zones to help MSMEs find suitable markets. Under the Rajasthan Micro, Small, and Medium Enterprises (Facilitation of Establishment and Enforcement) (Amendment) Bill, 2023, the government has introduced relaxed registration and compliance norms for businesses within the first three years of incorporation.