UCCI pitches for task force to look into issues of MSMEs

Expressing concern over the difficulties faced by the micro, small and medium enterprises (MSME), Utkal Chamber of Commerce and Industry (UCCI), the apex industry chamber of the state, has urged the Odisha government to set up a task force to redress the issues of the MSME units.

In a letter to Chief Minister Naveen Patnaik, the chamber urged him to set up a task force under the chairmanship of Chief Secretary to draw up a proper plan for redressal of difficulties faced by both, start-up units and the existing ones.

While the state government is planning to bring out new Industrial Policy Resolution and MSME policy, UCCI rued the non-implementation of the various clauses of the prevailing policies namely IPR-2007 and MSME Development Policy-2009, have hindered the industrial growth.

"Most of the clauses of the policy have not been implemented in the absence of notification by concerned departments. Therefore, before publishing a new policy, the task force should go through reasons for non-implementation of the earlier policy and talk to different departments, PSUs and agencies. After ascertaining the reasons, the task force should suggest remedial measures which should be incorporated in a new policy so that its implementation becomes full proof and different incentives declared in the policy reaches the door-step of the entrepreneur", read the letter to Patnaik.

The industry body pointed out that the engineers and youths willing to start new ventures in MSMEs are facing problems in getting the land. Despite repeated requests made by the industry bodies, the state-owned Odisha Industrial Infrastructure Development Corporation (Idco) has not set up new industrial estates in last 15 years.

"The task force will find out the reasons for this and either prevail upon Idco to build new industrial estates or can suggest for a separate MSME infrastructure wing in Idco to ensure development of exclusive industrial estates for the MSME sector", UCCI said. It also pitched for creation of a separate infrastructure development corporation for the MSME sector.

UCCI sought government intervention for the rationalization of Value Added Tax (VAT) for MSMEs, so that it is in tune with the prevailing rates in neighbouring states.

"Large and mega industries prefer to buy their requirement from outside the state by paying Central Sales Tax (CST) @ 2 per cent rather than from the local industries where they have to pay VAT ranging from five to 13 per cent", the letter said.

The industry body pleaded for regular review of the MSME sector, at least once in a quarter by the Chief Secretary and half yearly by the Chief Minister.