New Delhi: The government on Monday approved the much-awaited promotional package for micro-small and medium enterprises, likely to be valid for five years.
"The package would provide support for the development and promotion of micro and small sector units, facilitate employment generation and enhance their competitiveness," a government spokesperson said after the meeting of the Cabinet Committee on Economic Affairs (CCEA).
While he did not spell out more details of the package, sources said the package will be for five years and would entail financial commitment of more than Rs 2,300 crore.
The package was initially resisted by the finance ministry as the package has called for fiscal concessions and proposed new schemes.
Apart from fiscal support, the package would provide legislative support as well.
As part of providing legislative support the Micro, Small and Medium Enterprises Development (SMED) Act has already been passed by Parliament and become operational from this week.
The government is also working on a law to provide for Limited Liability Partnerships (LLP). The SMED law and LLP would provide the legislative framework to promote the small-scale sector.
The proposed package would focus on development of clusters and improve their efficiency.
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