The union budget is likely to propose an industrial area development scheme focused on micro, small and medium enterprises with funds to not only expand and upgrade existing industrial areas with common infrastructure but also develop new industrial areas.
These industrial areas would act like industrial parks specifically for the small businesses, said two people aware of the development.
The Centre would provide most of the financial support needed for setting up and upgrading the industrial areas, said one of the two people mentioned above. Apart from getting support from states, and allowing a state implementing agency to set up the projects, multilateral lenders such as the Asian Development Bank and International Financial Corporation of the World Bank would also be asked to participate in financing these projects.
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