Assocham bats for venture capital creation

The apex trade body, the Associated Chambers of Commerce and Industry of India (Assocham), has pitched for creation of venture capital for the knowledge and technology based industries in Odisha.

"Venture Capital is ideal for knowledge and technology based industries. The IT (information technology) sector- software industry and related business such as e-commerce, networking, multi-media, data communication and value added communication services- is a growing sector and SME (small & medium enterprises) units venturing into these areas need to be assisted," the industry body said in a report titled 'Odisha-Promoting SMEs for sustainable growth - A Knowledge Study'.

Assocham has offered a string of recommendations for growth and development of SMEs in Odisha.

"Different steps have been taken to promote and develop MSMEs in Odisha by the state government, other agencies and financial institutions. But it is unable to boost up completely in the globalised environment," the study said.

The chamber has urged the state government, leading micro-finance institutions and non-governmental organizations (NGOs) to come forward for providing small loans to the micro entrepreneurs, especially for hand loom and handicrafts entrepreneurs.

Assocham has also stressed on promotion of rural hubs in the state to help local people and link them with state and national level organizations.

It said, Sonepur district may be considered as rural hub since it is known for the traditional sarees.

The apex chamber has suggested for providing incentives to SMEs for setting up industries in areas where there is abundance of crops.

The study cited that surplus production of mango in Angul and Dhenkanal districts are sold at throwaway prices without any value addition due to lack of processing industries.

Similarly, the chamber has also made recommendations for up-gradation of technologies, improvement of quality and competitiveness, cluster developments, marketing, skill development, rehabilitation and revival of viable sick units, financial inclusion and investor friendly industry policy for the development of the MSME (micro, small & medium enterprises) sector in Odisha.

As per the final report of the fourth Census of MSMEs 2006-07, out of the total of 10,61,705 such units in the state, only 19,606 are registered.

Assocham says, there are 19,606 working MSME units while 5,744 units and 1,123 units are closed and non traceable respectively in the state. The operational units include 18,840 micro units, 745 small units and 21 medium units.

"The state government should play a more significant role by upgrading social and physical infrastructure, thereby making the whole environment conducive and investor friendly," said Manas Kumar Thakur, Central Council Member, Institute of Cost Accountants of India (ICAI) at a seminar on 'Odisha-Destination for Sustainable and Inclusive Growth organized by Assocham'. ICAI was the knowledge partner of Assocham in the event.