08 December 2019

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Orissa Govt Goes Ga Ga Over MSMEs

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The current economic growth of Orissa at 8.3 % definitely shows that the state has made steady march towards c development. However, there still exists some substantial economic gap. Government of Orissa is taking ample measures to bridge this gap.

One of the significant steps taken by the govt towards bridging this gap is endorsing an inclusive development policy for the Micro Small Medium Enterprises, which can, to a great extent, assure steady economic surge.

The state witnesses today a new wave of industrialisation, especially in the metal, power, cement, petro-chemical,  IT, and tourism sector. 

To start with, the govt has formulated the Orissa MSME Policy in 2009. It aims at dealing with the problems and sickness of the State MSMEs.Following is a summarised account of the fundamental points of Orissa MSME Development Policy 2009: The main objective of the policy is to catalyse the growth of new MSMEs, maximise the growth of existing MSMEs, and revive them. 

To  materialise this, the govt has envisaged a slew of action-oriented strategies, such as fiscal and non-fiscal incentives. The large and mega industries should facilitate setting up of ancillary and downstream units which can generate more jobs.

Through clusterisation of MSMEs, the govt has tried to ensure that the MSMEs’ strive to better their services and products.  Besides this, the policy envisages the setting up of specialised industrial parks for MSMEs, hold MSME exhibitions, establish industry-institution linkages etc. Besides, dedicated industrial parks for women entrepreneurs shall be developed. 

As part of the infrastructure, minimum 20% of the land in any industrial estate will be reserved for the MSMEs. Ten per cent of such land, subject to an upper limit of 200 Ac., shall be earmarked for setting up of MSMEs in cluster mode. New industrial units belonging to MSME sector shall be entitled to capital investment subsidy of 10% of fixed capital investment subject to an upper limit of Rs. 8 lakhs only. SC, ST, PH, Women and Technical (Degree / Diploma holding) entrepreneurs shall be entitled to capital investment subsidy of 12% of fixed capital investment subject to an upper limit of Rs.10 lakhs.

IDCO is chosen as the entitled body to supervise, monitor and upgrade the MSMEs.   Common Facility Centres (CFCs) set up by Special Purpose Vehicles (SPVs) of MSME clusters shall be entitled for allotment of land on free of cost basis at locations earmarked for the purpose by
IDCO. This shall be treated as the State Government’s share.

The District Level Single Window Clearance Authority shall be the competent authority for assessing the requirement of land of MSMEs and for recommendation of the same to IDCO / Revenue Department / General Administration Department / Urban Local Bodies and Urban Development Authorities such as BDA, CDA etc.

A credit monitoring group will be constituted to facilitate flow of institutional credit. The Orissa State Financial Corporation shall revive its operations and resume lending to MSMEs so as to substantially improve the flow of credit to MSME sector. The MSMEs shall be encouraged to increasingly adopt credit rating by reputed agencies such as SMERA. A specific scheme to reimburse / subsidise the rating fees shall be launched by the Government in due course. The flexible Orissa MSME venture capital scheme will support investee companies in the form of equity and quasi-equity.

The G.M. / P.M, DICs shall be the competent authority to assess the requirement of raw materials of MSMEs located within their jurisdiction and for recommending the same to competent authorities of the relevant Central / State PSUs and Govt. Departments through the Director of Industries, Orissa. It shall be incumbent upon the Orissa based PSUs to accord priority in allotment of raw materials to the MSMEs located within the State of Orissa at the lowest rate as extended to any other buyer of the same material inside or out side the State.

As a marketing initiative, the State Govt. Departments and Agencies under their control will have to procure their requirement of these items exclusively from local MSEs with ISO/ISI/EPM certification for the items by inviting limited competitive quotations from such local MSMEs only. Efforts will be made to distribute the purchase order equitably among the participating enterprises prepared to accept lowest negotiated rate keeping in view their production capacity.

The State Government shall undertake a comprehensive district wise drive through Directorate of Industries for identification of potentially viable sick units. Such industries shall be placed on a fast track mode for consideration of rehabilitation assistance by Government and all agencies concerned.


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