Orissa reserves 20% land in industrial estates for MSMEs

To meet the infrastructure needs of micro, small and medium enterprises (MSMEs) on a priority basis, the Orissa government has reserved 20 per cent of the area in all industrial estates, industrial parks, industrial corridors and land banks for such units.

Further, the state-owned Industrial Infrastructure Development Corporation (Idco) will promote new exclusive zones for MSMEs in all major industrial hubs of the state.

The locations where exclusive industrial parks will be promoted include Kalinganagar, Barbil, Jharsuguda, Sambalpur, Dhenkanal, Rourkela, Baragarh, Balasore, Dhamara, Gopalpur, Chhatrapur, Raygada, Kalahandi and Choudwar.

Such exclusive zones will also come up near the Special Economic Zones (SEZs) in the state.

“The government has notified reservation of 20 per cent land in all industrial estates for MSMEs”, a senior official of the state industry department told Business Standard.

The government has also decided that wherever land is provided to large and medium industries, 10 per cent of the land, subject to a maximum limit of 200 acres, will be earmarked for setting up MSMEs. This will facilitate the setting up of ancillary and downstream units, preferably in cluster mode, a source added.

This condition will be applicable to companies that have already signed a memorandum of understanding (MoU) with the state government and those who are expected to sign MoUs later.

Sources said that Common Facility Centres (CFCs), to be set up by the Special Purpose Vehicle (SPV) constituted for the MSME clusters, would be entitled for allotment of land free of cost at various locations in the state.

Idco, the land acquisition arm of the Orissa government, will earmark these locations. The CFCs’ land cost will be treated as the state government’s shareholding in the SPV.

To provide assured sources of raw material for such units, the Orissa Small Industries Corporation (OSIC) and the National Small Industries Corporation (NSIC) will set up raw material banks.

The two organisations will act as nodal agencies for MSMEs and public sector resource companies will accord priority to OSIC and NSIC in supply of raw materials, which will be made available to MSMEs at the lowest possible rate.