The Small and Medium Enterprises Development Authority (SMEDA) has resumed the matching grant process for the establishment of industrial stitching units across the country.
Chief Executive Officer of SMEDA Hashim Raza has said in a statement that the grant is part of a public sector development program (PSDP) funded project being implemented by SMEDA under the Federal Ministry of Industries and Production for the establishment of 1000 industrial units, for which the grant has already been issued to 93 SMEs.
The project, he said, aims to provide financial assistance to boost value addition in the field of textile garments manufacturing through matching grants to new business startups as well as existing small & medium enterprises (SMEs) having adequate experience in textile-related manufacturing.
CEO SMEDA observed that the textile sector had a significant role in the development of the national economy and the enhancement of value addition, productivity and innovation could steer this sector to increased exports and more job creation. The financial assistance to be provided through this grant will help the industrial stitching units share more contribution to the growth of the economy, he added.
The project is targeted toward establishing 1000 industrial stitching units in the long run and is passing through the first phase of its three years operation, under which 93 units out of a total of 150 have so far been completed successfully. The current process of the grant aims to support 57 units, after which the first phase of this project would stand completed.
Notably, the said grant is disbursed in the form of machines, ranging from seven to 18 in number, as per the requirement of the applicants. The project provides a grant facility on a cost-sharing basis, under which 40 percent of the cost of the machinery is borne by the applicant and 60 percent is provided through the project.
The application forms for the grant are available on the SMEDA website and the interested SMEs have to submit their applications in SMEDA offices in their regions before 4th November 2022.