No progress as council fails to meet regularly

MP: WHO WILL INVEST?

The state advisory council, which was constituted to promote investment in Madhya Pradesh, has failed to organise its review meeting. The council, which has some prominent industry members on its board, organised its first meet in Khajuraho during an "investors' meet" on January 16 this year.

Chief Minister Shivraj Singh Chouhan had decided to organise the review meet at a regular interval of four months so that the state government could monitor the progress of investment in the state.

"Even after nine months I have not received any information from the state government if the meet is to be organised," said a member of the council adding, "the council had not only decided to meet regularly to monitor the progress of industrial development and target double-digit growth (at least 15 per cent) in the industry."

Many of the issues, which the council meet had discussed, have now been ignored.

The council had also decided to launch a new Ancillary Development Scheme for Small and Medium Enterprises (SMEs), amend Land Allotment Rules 1974 (amended in 1999) for Industries, follow the 45 day payment rule for SMEs. "No progress has been made so far," said the member.

The council had also urged the state government to follow the 45-day payment system, introduced by the Centre in case of payments to small and medium enterprises that manufacture and supply various items for the state government.

The public sector undertakings (PSUs), various government agencies and departments purchase materials from the small scale industries and small and medium enterprises but make delaye in payments ranging from 90 days to 120 days. "The system of payment in 45 days has not been implemented properly since no one is there to monitor the outcome of the council meet," the member said.

Under the new 45-day mandatory payment system if a PSU or state government agency fails to make payment to an SME in 45 days, a penal-interest of four times of prevailing bank rates will be levied from the buyer.

Along the lines of "Vibrant Gujrat", orgnised by the Gujrat government and the Federation of Indian Chambers of Commerce and Industry (FICCI), the Madhya Pradesh government will have final showdown at Indore next month. FICCI and ailing Madhya Pradesh State Industrial Development Corporation will jointly orgnise the show. Senior officials in the department of industry were not available for comment.