MP units demand special schemes

As Madhya Pradesh's small and medium units are coming out of the red, lobbying has begun for special schemes for ancillary industries.

In the absence of proper land allotment rules to set up shop in factory premises, intra-state import of raw material or spares has become a costly affair for units in the state.

SMEs under the banner of Madhya Pradesh Laghu Udyog Sangh, a body with more than 800 members, have launched a dialogue with the state government and are demanding an ancillary development scheme.

Almost all SMEs in the state import spares and components from other states which makes them less competitive. "We will discuss the policy with Industrial Advisory Council at Khajuraho on January 16," Dr R S Goswami, the Sangh president said.

"Two schemes floated earlier for SMEs, Udyog Mitra Yojana and Deen Dayal Rojgar Yojana, fetched some encouraging results. We would like to see the schemes extended," he said.

SMEs, according to him have posted a record production this year. Goswami is upbeat on further growth of the SMEs. "We have readied a road map for the scheme. It will ensure setting up at least 2000 industries in two years and as many as 20,000 jobs will be created. The combined turnover of these ancillary units will be Rs 100 crore. If the scheme is launched, units will be able to control inventories," Goswami said.

Madhya Pradesh has approximately 70,000 SMEs in engineering, automobile, textiles, electric goods and high-density polyethylene (HDPE). The state government had introduced Udyog Mitra Yojana in 2004 for the revival of sick industrial units in the state.

"The scheme benefited 2200 industrial units. But it expired in a year. We want it to be extended for another year so that more industrial units can benefit," Goswami said.

A number of SMEs have reportedly planned to migrate from the state and some of them have already done so. A sangh estimate says that if the government does not take steps immediately, 60 per cent of the units will leave the state.