Business Standard

Notifications hold up MP sops

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Shashikant Trivedi Bhopal

Representatives of small and medium enterprises in Madhya Pradesh say they have been ignored during the last four years in the state on various issues. The bureaucrats have ignored the announcements of Chief Minister Shivraj Singh Chouhan offering various facilities to the sector. In a memorandum to the state industries department,the Madhya Pradesh Laghu Udyog Sangh has said that notifications pertaining to various announcements, sops, facilities and amendments are still awaited.

The Udyog Mitra Yojna, land allotment rules, no-due certificates from pollution control board, building permissions from local bodies in industrial areas and industrial development centres, the rationalisation of stamp duties, improvements and amendments in labour laws and redressal of grievances in duties are the issues still haunting the MP SMEs.

 

“The state government has not issued notifications pertaining to the change and amendment in various sloppy rules and regulations which have hindered the progress of the SME sector,” an office bearer of Madhya Pradesh Laghu Udyog Sangh told Business Standard. The Sangh members have demanded more land in the industrial area in Tikamgarh, Itarsi, Gwalior and Govindpura (near Bhopal). Industrial areas like Pipalkhiria (near Bhopal), Pratap Pura in Tikamgarh districts lack water supply and other basic amenities.

Govindpura industrial area has 5,000 pending applications for land allotment, while the Gwalior SME sector has been housed in city (Birla Nagar) locality and immediately needs to be shifted to the industrial area. “In the absence of infrastructure in the industrial area, we have no option but to operate in city or close the entity,” said another member of the Sangh.

“Pipalkhiria industrial area had been developed eight years ago, but the department of industries has not arranged basic infrastructure like water, power supply and roads. A number of industries have set up their units and have invested a huge amount in vain,” a small scale entrepreneur said. The pharma unit failed to operate. Small scale industrialists have alleged that state electricity board demands more than Rs 2 lakh as fee for power connection. “Small scale unit of 25 Kw capacity should be provided power connection at no additional cost,” the Sangh has said in its memorandum.

The SME sector has demanded immediate action on amendments in land allotment rules 1974. “The 1974 rules had been amended in 1999. It had an adverse impact on the SME sector. Despite our repeated requests, the state government has paid no attention to our demands,” the industrialist said.

The issues which have been ignored by the state government over 15 years are: funding through collateral security, creation of skilled employment, ineffective single window system and cumbersome documentation process. Petty problems in the industrial area like rag-pickers, waste collection and storage activities in industrial areas, industrial theft, recycling and reprocessing of plastic wastes were also adversely affecting growth in the industrial areas.

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First Published: Sep 29 2008 | 12:00 AM IST

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