Entrepreneurship Ecosystem Overview
Andaman & Nicobar Islands
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Levers of change – Entrepreneurship
Following are the key levers of change which determinewhether a state’s policy, education, legal framework, financialsystems, business markets, cultural and social ethos areaugmenting Entrepreneurship Growth:
1. The Entrepreneur
2. Govt. & Regulatory Support
3. Access to Finance
4. Educational & Cultural Preparedness
5. Mentoring & Networking
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The Entrepreneur
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Andaman & Nicobar Islands ranks
#31 in India on ‘Ease of Doing Business’ index 2017-18 of the
Department of Industrial Policy and Promotion's (DIPP). Full detailsof reforms taken can be read in this link: http://eodb.dipp.gov.in/
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Govt. & Regulatory Support
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• ANIIDCO• Single Window Portal forMSME’s• A & N Islands, District Industries Centre (DIC)
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ANIIDCOAndaman and Nicobar Islands Integrated Development CorporationLimited (ANIIDCO) was incorporated for rapid economic growth of theIslands. The main objective of the Corporation is to develop andcommercially exploit the natural resources for the balanced andenvironment friendly development of the territory.
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http://aniidco.and.nic.in/about-anidco.php
Single Window Portal of Industries Department
• The Directorate of Industries is nodal department of A & N Admin for developmentof MSME sector in A & N UT. This Portal has been developed to provide a “SingleWindow” interface of A & N Admin to all Enterprises functioning under MSMEcategory units in UT.
• The portal provides information of MSME schemes and subsidies and onlinefacilitation system for online applications for the MSME’s in the UT.
• Entrepreneur can download release of “ Subsidy order “ of A & N Admin directly from portal.
• “Digital Locker” of MSME’s etc.
8http://andssw1.and.nic.in/industries/msme/index.php
A & N Islands, District Industries Centre (DIC)
• A & N Islands, District Industries Centre (DIC) is the Nodal department forimplementing EoDB project in Andaman & Nicobar Island.
• It facilitates Online Application, Processing and providing Digital Clearances to theentrepreneurs.
9http://andssw1.and.nic.in/swc/
Access to Finance
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Schemes:
• PACKAGE OF INCENTIVES AVAILABLE FOR DEVELOPMENT OF INDUSTRIES• Andaman & Nicobar Islands Infrastructure Subsidy for Micro, Small & Medium Enterprises 2017
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PACKAGE OF INCENTIVES AVAILABLE FOR DEVELOPMENT OF INDUSTRIES
• Loan to Tiny Cottage and SSI Industries at reduced rate of Interest:Acomposite loan upto a maximum of Rs.5.00 Lakhs is made available totiny cottage and SSI Units @7% of the interest on term loan and @10%on working capital per annum for purchase and erection of plant andmachinery, construction of factory, sheds, wells, tanks and other civilworks, purchase of raw materials and for land development.
• Subsidy on installation of D.G. Set, land development and installation ofwater harvesting equipments: All Small Scale Industries and Small ScaleService & Business Enterprises registered with Directorate of Industries,A&N Administration are eligible for 50% subsidy of the cost of the D.G.sets and 50% of the expenditure on the development of land subject to amaximum of Rs.1.00 Lakhs in each case and 50% of the cost of in-housewater harvesting equipments subject to a maximum of Rs.50,000/-.
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• Interest free loan for procurement of D.G. set/in-house waterharvesting equipments:All SSI units registered with the Directorate ofIndustries are eligible for a loan up to 90% of the actual cost of the D.G.
• Mainland Island Transport Subsidy Scheme:90% of the freight chargesare reimbursed to the eligible small scale industries for transporting rawmaterials from mainland port to the location of the Units and fortransporting finished goods from the location of the units to themainland ports. The units which are eligible under the Central TransportSubsidy Scheme of Govt. of India are not eligible under this scheme.
• Inter Island Transport Subsidy Scheme:90% of the freight charges arereimbursed to the eligible small scale industries for transporting rawmaterial from any inter island port/jetty of A&N Islands to the locationof the unit and for transporting finished goods from the location of theunits to the Inter Island port/jetty.
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• Island Capital Investment Subsidy Scheme:Capital investment subsidy of25% subject to maximum of Rs.25 Lakhs is being given to the small scaleindustrial units and the small scale service and business enterprises whichare registered with the Directorate of Industries/Department of IndustrialPolicy and Promotion, Ministry of Industry, GOI. Only such units which areset up after 1.4.1995 are eligible for subsidy under the scheme. Unitswhich go in for provides their production capacity is increased by 25% arealso eligible for subsidy.
• Interest free loan for promoters contribution for Industrial Unitsmarketing its products on Mainland:All Small scale units registered withthe Directorate of Industries are eligible for interest free loan upto 10% ofthe project cost towards promoters margin subject to maximum of Rs.50,000/- provided they market at least 30% of their products in mainland.The promoters own contribution shall be 5% of the project cost.
• Credit Guarantee Scheme: It has been the experience that the localentrepreneurs face problems of providing collateral security to obtain loansfrom Nationalised Banks/Financial Institutions. The Administration hasguarantee to the Banks/Financial Institutions to cover bad debts upto Rs.10 Lakhs per unit.
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• FISCAL INCENTIVES:There is no sales tax in this UT and the industries avail thisconcession. Octroi is exempted for the SSI Units on plant andmachinery/equipments used for industrial purposes.
• The relief and concession extended by the Govt. of India for the industriallybackward areas Category `A' like a five year tax holiday for new industrialundertakings, concessional excise duty etc. are also made available to the units setup in these Islands.
• Financial Assistance and Awards to Crafts Persons for Development of Innovativedesign:In order to encourage craftsmen to develop new designs in handicrafts, thedepartment implements an scheme awards as a measure of recognition of theexpertise. Besides, best craftsmen are also awarded prize money and certificatesevery year.
15http://www.dcmsme.gov.in/policies/state/an/pstan07x.htm
Andaman & Nicobar Islands Infrastructure Subsidy for Micro, Small & Medium Enterprises
2017
• The scheme shall remain in operation till 31st March 2020.
• After obtaining Udyog Aadhar Memorandum, the unit shall apply online and furnish the hard copy to the Directorate of Industries along with other documents to avail the subsidy.
BENEFIT:
• Grant of subsidy on fixed capital investment excluding land and vehicle, shall be reimbursed to MSMEs at 50% subject to maximum of 100 Lakhs INR.
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http://andssw1.and.nic.in/industries/msme/IncentivesDox/MSME%20Infra%20Subsidy.pdf
Education & Cultural Preparedness
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Educational Institutions Promoting Entrepreneurship
• ICAR-CIFT imparts entrepreneurial skill to unemployed rural youths ofAndaman and Nicobar: ICAR-CIFT conducts a skill based in-house trainingprogramme on ‘Post- harvest technology for preservation and value additionof marine resources’ for the unemployed rural youths of the A&N Islands.
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Mentoring & Networking
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Startup Incubators, Co-Working Spaces
• Micro, Small and Medium Enterprises Development Institute, Port Blair acts as anursery for the development of entrepreneurial talent by appropriately hand-holding and providing necessary guidance to set up or upgrade the enterprises.
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