MP govt ignores demand for ancillary development scheme

The Madhya Pradesh government seems to be in no mood to concede the demand of small and medium scale enterprises for the introduction of the ancillary development scheme.

To be competitive in the world market, reduce transportation costs, avoid additional land acquisition, and enhancement of productivity, SMEs had for long been demanding the introduction of the scheme.

"A land allotment rule introduced in 1999 bars small and medium scale industries from setting up their own ancillary unit in their premises. As a result 1,63,327 small and medium scale industries in the state today are dependent upon other ancillary units," the MP Laghu Sangathan said in a memorandum, submitted to the state government in January this year.

The issue was also raised recently in a meeting with the state chief minister, Shivraj Singh Chouhan.

The SMEs in the statehave also been offered a minuscule share in bank loan disbursement which is 7.5 per cent of the total bank credit against the national average of 12 per cent.

"As many as 15,993 small scale units have been offered Rs 191 crore without collateral, while 1,691 units have been offered Rs 44.46 crore under the credit guarantee scheme," RS Goswami president of the Sangathan said adding, "An ancillary development scheme will help the state SMEs in creating 25,000 jobs and a combined investment of Rs 400 crore. The state will also be able to earn an revenue of Rs 58 crore as taxes through these new ancillaries."

Officials in the industry department were not available for comment. However, a well-placed government source in state industries department said the demand for the scheme was not exactly a priority with the government.