Chief Minister Naveen Patnaik has urged the central government to help the states in reshaping defunct Micro, Small and Medium Enterprises (MSMEs) by providing financial assistance and framing conducive policies.
“Sickness is very common in MSMEs. The state government may be supported by the Central government to set up Rehabilitation Funds and operationalise appropriate schemes for the rehabilitation of units temporarily rendered sick due to circumstances beyond their control,” Patnaik said at the inaugural ceremony of ‘Entrepreneurship Week’, the flagship programme of the Orissa government, recently. Apart from liquidity problems, the small industries in the state are often found to be unaware of various schemes and subsidies provided by state and central governments. The Chief Minister said, the newly-formed MSME department in the state, is expected to take care of the problem.
“I am sure the new MSME department would work towards creating an enabling environment, promoting a veritable enterprise culture, developing a favourable financial environment for MSMEs and finding innovative means to support MSME development,” he said during the function, which also marked the official opening of the MSME department of the state government, which will work under the Ministry of Industries.
According to an estimate, there are about a million MSMEs currently working in the state and are providing jobs to around two million population.
Speaking on the occasion, the industry minister lashed out at bankers in the state for not providing enough credit to MSME sectors. “The fourth census of the MSME indicates that more than 85 per cent of MSMEs have not been able to avail the credit from financial institutions. This is a serious lapse and our bankers should examine the reason and take necessary for making more and more credit to MSMEs,” said Raghunath Mohanty, state minister for steel and mines.