n a major decision to provide relief to small and micro entrepreneurs and boost the micro, small and medium enterprise (MSME) sector in Uttar Pradesh, the Yogi Adityanath cabinet on Wednesday approved the ‘Chief Minister’s Micro Entrepreneur Accident Insurance Scheme’.

The scheme will facilitate provision of financial assistance to micro entrepreneurs in unavoidable circumstances. For example, in case of death or disability of a micro entrepreneur, claims of up to Rs 5 lakh can be made under the scheme, Finance Minister Suresh Khanna told reporters after the cabinet meeting.

On partial disability, the relief amount will be given according to the percentage of disability as mentioned in the disability certificate issued by the chief medical officer.

Khanna added: “Under the Mukhyamantri Micro Udyami Accident Insurance Scheme, micro category entrepreneurs aged between 18 and 60 years can apply to avail its benefits. Micro entrepreneurs, who are not eligible for the Traders Accident Insurance Scheme run by the Goods and Service Tax department, will immensely benefit from the scheme.”

Only about 15 per cent of the total MSME units established in the state are formally registered on the Udyam registration portal and 85 per cent of the units are working informally. Since registration on the Udyam portal is not mandatory, the data of these units are not formally available. Besides, due to non-availability of formal data, the economic contribution of this sector is not reflected in reality, while policy formulation also faces difficulty. For all these reasons, the Yogi Adityanath government has decided to launch the scheme.

In case of an accident, a copy of all the forms will be submitted to the deputy commissioner (industries) of the district concerned after the victim’s family has applied for it through the online system. In the event of an accident of a registered micro-entrepreneur, after receiving the recommendation of the claim amount from the deputy commissioner (industries), the insurance amount will be made available through DBT (direct benefit transfer) within a maximum of one month to the nominated heir of the entrepreneur from the directorate level, as per the prescribed procedure.

The cabinet also approved the establishment of medical colleges in six districts, namely Baghpat, Mainpuri, Hathras, Kasganj, Mahoba and Hamirpur, under the Viability Gap Funding (VGF) scheme of the Government of India.

Khanna said that under this scheme, medical colleges would be opened in those districts where no medical college was established. Medical colleges in these districts will be set up under the PPP (public-private partnership) model.

“With the establishment of medical colleges in the above districts, the residents of the district will be able to get excellent medical and health facilities smoothly. Apart from this, educational and non-academic cadre employment will be created related to the medical college,” the minister said.

In another decision, the cabinet has given approval to the proposal to set revised guidelines in relation to grant-in-aid for renovation, repair, reconstruction, construction and facilities of non-government aided secondary Sanskrit schools under the Secondary Education department.

The responsibility of getting the work completed in time in the schools of the state will be of the director, secondary education of Uttar Pradesh. Arrangements have also been made for third party inspection/supervision at four levels (i.e. foundation filling, plinth construction, lintel casting and roof casting) to maintain the quality of construction works.