MP clusters fail to attract investments. new units

Small scale industries (SSIs) have witnessed an approximate 35 per cent growth in Madhya Pradesh in the last four years. The number of small scale units has increased from 1,083 in 2004 to 1,469 so far this year. A total investment of Rs 763.96 crore came in the small scale segment, up from Rs 588.42 crore. The total number of employment has also increased from 30,112 to 35,060 in this period.

However, Kheda, Sonwai (Indore), Pilukhedi (Bhopal) and all food parks managed by Auyogik Kendra Vikas Nigam — a subsidiary of Madhya Pradesh State Industries Development Corporation — failed to attract any SSIs. Industrial areas like Pithampur (Indore) attracted 111 small industries, Indore readymade complex 120, Dewas 13, Mandideep (Bhopal) 64, Malanpur (Gwalior) 13, Banmor (Gwalior) 23, among others. Those areas which managed to attract very few industries were Sidhgawan 6, Boregaon (Jabalpur) 4, Rewa 8, Baidhan (Sidhi) 5, and Porena only 2.

A total of 66 units were revived in all industrial areas under a new scheme Udyog Mitra Yojana launched by the state government in 2004. As many as 30 sick SSI units were revived in Mandideep industrial area, 15 in Banmor, 2 in Borgaon, 1 in Maneri and 5 in Rewa.

Though State Industrial Development Corporation, the sick entity of the state government, failed to come out of the red, its subsidiaries in Gwalior attracted Rs 123 crore in the SSI sector and created 406 jobs. Similarly, Bhopal attracted investment worth 1,222.76 crore and created 3,806 jobs; Indore Rs 1,050 crore and 500 jobs, Boregaon Rs 100 crore and 175 jobs, while Rewa-Baidhan area attracted investments worth Rs 7.38 crore in the sector and created only 25 jobs.

“Had the state government extended the Udyog Mitra Scheme, the SSI segment would have been booming in the state,” said RS Goswami, president, MP Small Scale Industries Association.

Advances to micro, small and medium enterprises (MSMEs) surged by 55 per cent from March to December last year by Rs 1,961 crore to reach 5,364 crore. The credit flow to SSIs could have been better if the bankers had adopted an aggressive strategy.

Despite an overall good performance in the sector, credit extension, technology upgrade, availability of skilled labour as well as training and exports were not satisfactory. “The implementation of various schemes could not pick up the pace. As a result, the SSI sector in the state has suffered, particularly in the pharmaceutical sector,” Goswami added.