In order to provide better infrastructure and level playing field to small scale industries, the Madhya Pradesh government will soon create a new department for the sector. On the other hand, state small industries association does not subscribe to the idea and has said the government must create a separate ministry for the sector.
Earlier, it was planned to bring medium scale industries under the ambit of this department but later it decided to focus on small scale industries only. The department is likely to be created by next month.
Speaking to Business Standard state chief secretary Avani Vaish said, “Creation of a new department will help us understand problems of small scale sector in a better way and we will be able to provide more facilities to the sector so that it can ensure a better growth as we will be able to take benefit of various central government sponsored schemes. Further, we will make our entities like Madhya Pradesh Laghu Udyog Nigam (MPLUN) accountable to small scale sector.”
Currently, MPLUN has a limited role of procuring materials for government. It also procures medicines for government-owned hospitals. “The new department will look into matters like cluster formation for small scale industries,” Vaish said. “The department is likely to be created by November this year.”
The department will also look into land allotment for small scale industries in existing and proposed industrial areas. The government does not require additional staff for the purpose. Large and medium scale industries are now looked after by MP trade and facilitation corporation (TRIFAC).
Small scale industries association MP Laghu Udyog Sangh has a long pending demand of creation of a separate ministry. “Creation of department will not serve the purpose we are crying for an — an exclusive ministry for the sector. The ministry will work purposely while the department will hardly deliver anything,” said Dr R S Goswami, president of the association. He added, “If they (government) really wants to create at least 500,000 new jobs, they should create a separate ministry.”
According to the association, there are approximately 355,000 small scale industries in the state, of them 108,000 units have access to funds which has now reached Rs 25,000 crore. Of which fund-based units have Rs 18,000 crore bank credit. A large number of industries are under financial stress due to costlier funds.
