SAIL launches 'Ispaati Ilakon ka Vikas: SAIL ke Sath' scheme for MSME sector

“Mission Purvodaya” is aimed at spurring the growth and development of the eastern region of the country. The steel ministry has announced several developmental steps like an integrated steel hub encompassing the eastern states of Odisha, Jharkhand, Bihar, Chhattisgarh, West Bengal and Northern Andhra Pradesh and “Ispati Irada”-a collaborative campaign aimed at promoting usage of steel in the country

In this connection, the national steel-maker launched its scheme "Ispaati Ilakon ka Vikas: SAIL ke Sath" with the aim to contribute towards overall socio-economic development of the districts in which the steel plants are located, boost commercial activities through nurturing and developing the local industries and act as a catalyst for employment generation, said a statement from SAIL.

The scheme aims to provide the local MSMEs based in the districts in which SAIL Plants are located, the required impetus to be competitive and encourage new industries to come up in the region.

SAIL will arrange to hold inventory for the MSMEs who are registered under the Scheme based on their monthly consumption so that the burden of holding inventory and requirement of large working capital are reduced.

Further, on these materials delivered from the warehouse, special incentives will be extended on the price of the material.

Besides these incentives, MSMEs will be extended the same volume-based incentives as extended to large customers from the same branch locations.

These incentives are expected to provide a relief of Rs 700-800 per tonne of steel for MSMEs under the Scheme.

Besides these price-based incentives, SAIL is planning to extend a flexible annual MOU with quantity-based turnover discount, interest-free credit, cash discount and consistency benefit.

In order to make cheaper funds available, SAIL will provide comfort for company’s channel financing schemes in which eligible consumers can have access to credit at relatively lower rates of interest.

These non-price based incentives have opportunity advantages in the range of about Rs 200-400 per tonne.

Besides these benefits, local steel plants shall help in skill development, knowledge enhancement, local promotions and other consultation opportunities etc.

Even for new industries that are going to come up in these Plant-based districts, an additional tapering incentive scheme shall be extended by SAIL.

“The Scheme will go a long way in boosting economic activity in the Purvodaya States and provide these natural resource-rich states with the ideal framework for achieving socio-economic development.”