The Uttar Pradesh government is collating a detailed district-wise database of micro, small and medium enterprises (MSME).
This is likely to benefit the 3.1 million-strong MSME sector in the state by facilitating easier flow of information and intra/inter business networking. The database would be uploaded on the departmental website in 2-3 months. Mukul Singhal, principal secretary, small scale industries and export promotion, UP, said the state industry facilitation council would also be revived by next month.
The government, said Singhal, is also considering re-vitalising the UP Financial Corporation (UPFC) and Pradeshiya Industrial & Investment Corporation of UP. The UPFC owes about Rs 800 crore to the Small Industries and Development Bank of India (Sidbi). “An investment of Rs 50,000 is needed to generate employment for 1 person in UP, which is quite less compared to Rs 1 lakh investment in other states,” added Singhal.
Singhal was speaking here at the Confederation of India Industry (CII) MSME conclave organised in partnership with the UP government, Sidbi and the National Small Industries Corporation (NSIC).
The conclave brainstormed issues of finance, marketing, exports, technology, quality, skills up-gradation among others which posed challenges to the growth of the MSME sector, the backbone of industrialisation in India.
Earlier, SSI and export promotion minister Bhagwat Saran Gangwar urged entrepreneurs to invest in UP. “The state has the potential to lead MSME sector growth.” He assured all support in establishing new units and making the sector competitive.
On the forthcoming state Industrial Policy, he informed that discussions with all stakeholders had been completed. The concerns of industry were being addressed in the proposed policy and several supportive provisions for the growth of MSMEs were being incorporated.
CII UP State Council chairman Alok Saxena said MSME sector accounted for 8 per cent of the State Gross Domestic Product (GSDP) of about Rs 6 lakh crore.
UP accounts for 12 per cent of India’s MSME base, but the sector needed technology up-gradation, innovation and better quality control to compete in the global markets. SIDBI chief general manager K M Nair admitted UP had low credit flow and the Non Performing Assets (NPA) level was as high as 31 per cent.
