MSME sector facing sickness under Akhilesh Yadav regime: IIA

The beleaguered MSME sector in the state is facing flight of industry to other states

The beleaguered Micro, Small and Medium Enterprises (MSME) sector in Uttar Pradesh (UP) is facing flight of industry to other states and sickness amongst industries under the present Akhilesh Yadav regime, an apex MSME body claimed on Friday.

Indian Industries Association (IIA), representing the over 3 million strong MSME space in UP, said the long standing grievances of the sector had not been resolved under the Akhilesh dispensation, despite assurances, public announcements, government orders (GO) and the new Infrastructure & Industrial Investment Policy 2012, which had replaced the erstwhile policy framed in 2004.

"It seems the state government is not at all serious about manufacturing and MSME sector, which is facing tough times," IIA President Manish Goel said.

He lamented although IIA had made several representations to the chief minister, who had also participated in MSME conclaves and made announcements, yet the ground situation had not changed.

Goel said there was no single window clearance system for industries, while industry interface Udyog Bandhu stays toothless.

Listing top irritants facing industrial growth, he said land allotment to industries was the biggest hurdle due to "rampant corruption" in UP State Industrial Development Corporation (UPSIDC), which is mandated to provide land to eligible industrial units.

"Besides, power tariffs in UP are high compared to other states, while the policy framework for industries is not lucrative enough to spur investment," Goel added.

He said the prevailing state of affairs was causing the flight of industries to other states, notably Uttarakhand, Madhya Pradesh and Bihar.

Kush Puri of Puri Industries of Muzaffarnagar said almost 60 rolling mills had closed down in the district and shifted to the neighbouring Uttarakhand due to cheaper energy tariffs and conducive policies.

"This has affected the livelihood of about 1,50,000 workers directly and indirectly, while power connection of 100 Mw had been surrendered due to the closure," he claimed.

Goel said Akhilesh government was holding industrial summits to attract investment, while neglecting MSMEs, which was the backbone of UP economy, providing direct and indirect jobs to nearly 150 million people.

"The government has signed MoU with the private companies, but actual investments are yet to come," he added.