Recognising the MSME (micro, small and medium enterprises) sector as the true vehicle of inclusive growth and balanced economic development in Orissa, the state government is in the final stage of formulating a new MSME development policy which will offer fiscal as well as non-fiscal incentives to the MSMEs.
The policy is also being framed with the objective of developing the ancillary and downstream units in the state to optimise the multiplier effect of the upcoming large industries, particularly in sectors like iron and steel, alumininum and power.
“According to the new policy, 25 per cent of the land in all upcoming industrial estates will be earmarked for the MSMEs. The policy also envisages that 10 per cent of land acquired for big industrial projects in the state needs to be reserved for the MSMEs”, said Hemant Sharma, director of the industries department of the Orissa government.
The MSME development policy has also proposed a venture capital fund to be floated by the state government with a corpus of Rs 50 crore for providing financial assistance to the MSMEs and later on financial institutions like Orissa State Financial Corporation (OSFC) and Small Industries Development Bank of India (SIDBI) will be roped in as financial partners for this fund. “A credit monitoring group headed by the state Chief Secretary will be constituted to monitor the requirement and supply of credit to the MSMEs. This group will scrutinise the loan proposals of MSMEs pending with the various financial institutions”, Sharma added.
For development of ancillary and downstream units by the large industries in Orissa, the state government is mulling to incorporate a clause in the MoU (memorandum of understanding) signed with the private players.
The efforts made by the mother industries in the private sector to promote the ancillary and downstream units will be monitored by officials like district collectors and revenue district commissioners.
Sharma was talking to media persons on the sidelines of SME Connect, as seminar on development of ancillary and downstream units of steel industry in Orissa, organised jointly by the state government owned Industrial Promotion and Investment Corporation of Orissa Limited (IPICOL), Confederation of Indian industry (CII) and the United Nations Industrial Development Organisation (UNIDO).
Apart from providing financial support to the MSMEs, the new policy seeks to strengthen the single window clearance authority at the district level. The district level single window clearance authority (SWCA) has been started on a pilot basis in four districts of the state- Cuttack, Bhubaneswar, Jajpur and Jharsuguda and the state government aims to set up district level SWCAs in all districts by the end of 2008-09.
It may be noted that the district level single window clearance authority is empowered to clear projects involving investment up to Rs 50 crore. The state level SWCA can give the go ahead for projects, entailing an investment in the range of Rs 50-1,000 crore while projects over Rs 1,000 crore are cleared by the High Level Clearance Authority.
For providing marketing support to the MSMEs, the policy has identified state government agencies like OSFC, Orissa Computer Application Centre (OCAC) and the Orissa Tourism Development Corporation (OTDC) which will act as consortium leaders of different MSMEs to promote their products. Another state government body, Orissa Small Industries Corporation Limited (OSIC)would set up as many as 12 raw material banks in different areas of the state for the benefit of the MSMEs, said Sharma, who is also the managing director of OSIC.
