MSMEs propose setting up of infrastructure fund

To upgrade infrastructure facilities at the industrial estates, the trade bodies representing the interest of small scale entrepreneurs have pitched for constitution of Industrial Estate Development Fund (IEDF).

They have suggested creation of the fund using the premium money charged on conversion of land from lease hold to free hold status in industrial estates owned by Industrial Infrastructure Development Corporation of Odisha (Idco).

"For providing support to strengthen the clusters including Idco estates, the government should constitute a committee under the chairmanship of MSME minister to decide the premium to be charged on conversion of land in Idco run estates," said Nishikant Mishra, President, Odisha Small Scale and Industries Association (OSSIA).

A portion of this premium should constitute IEDF, which shall be administered by a committee headed by Secretary, MSME department. Money should be provided from this fund in the form of grant to the existing industrial estates for the upgradation of infrastructure facilities. The quantum of assistance will depend on the track record of performance and capacity of respective industrial estates, he proposed.

Mishra was speaking at a workshop on 'Infrastructure of MSMEs- Present & Future' on the occasion of 9th edition of Entrepreneurs Week organized by Idco.

He urged the government to lay down the rules for granting funds from IEDF.

OSSIA also suggested declaration of Idco estates as Notified Areas under the OIID act and to appoint an officer of Idco as notified area authority.

Criticising Idco for laying more focus on procurement of land for large industries, Ramesh Mohapatra, President, Utkal Chamber of Commerce and Industry (UCCI) reiterated his demand for formation of a separate corporation under the banner of 'Small Industrial Infrastructure Development Corporation' (SIIDCO) or a separate division under Idco for the SME sector.

Mohapatra appealed Idco to convert the status of land of the saturated industrial estates like Khapuria, Mancheswar and Chandaka from leasehold to free hold and use the premium earned from this process for construction of new industrial estates in and around Cuttack, Bhubaneswar and Rourkela.

Speaking on the occasion Vishal Dev, chairman cum managing director, Idco, took a dig at the industrialists and said that some land allocated to MSME entrepreneurs are lying vacant for more than twenty years. The allottees are now applying for mutual transfers.

Some have built residential properties while others have built go downs in the allotted land, he added. Idco has formulated various sub-committees to sort out the issues.