Odisha targets 300,000 jobs via 60,000 new MSMEs

The state government has set a target to generate 300,000 jobs through 60,000 new MSME (micro, small & medium enterprises) in 2015-16.

The decision was taken at a meeting to discuss credit facilitation to MSMEs. The meeting was chaired by chief secretary, GC Pati.

The state government has drawn a district industries centre (DICs) wise plan to achieve the objectives. The state intends that minimum 80 per cent of the enterprises promoted should be in the manufacturing sector.

"It was decided that the target for promotion of the new MSMEs in the state and districts are to be furnished to the SLBC (State Level Bankers' Committee) for fixing the target for individual banks to facilitate credit", Panchanan Dash, secretary, MSME department wrote to convenor, SLBC.

The state government has set a tentative target to advance loans of Rs 12,000 crore to the 60,000 new MSMEs in 2015-16 for the growth of the sector.

Last fiscal, the banks had advanced Rs 8,038.60 crore against the target of Rs 5,719.13 crore given in the annual credit plan for the financial year to micro and small enterprises (MSEs). The public sector banks have disbursed Rs 5,421.60 crore to the MSE sector.

Private sector banks and regional rural banks have advanced loans of Rs 1,011.79 crore and Rs 1,572.61 crore to the sector respectively.

There are about 1.5 million MSME units in the state providing jobs to 3.3 million people. Odisha ranks among the top 10 states in terms of providing employment in the MSME sector. The growth rate of MSME in Odisha is 32 per cent against the all India rate of 28 per cent. Similarly, the growth rate in creation of jobs opportunities in the sector is 29 percent against the national average of 26 per cent.

The other leading states in terms of MSME job creation are Uttar Pradesh (9.23 million people), West Bengal (8.578 million), Tamil Nadu (8.09 million), Andhra Pradesh (7.069million), Maharastra (7 million), Kerala (4.96 million), Gujarat (4.77 million), Karnataka (4.672 million) and Madhya Pradesh (3.36 million).