Orissa to take cluster approach

In a bid to accelerate the development of micro, small and medium enterprises (MSMEs) in the state, the Orissa government will soon draft a new policy for the sector.

The policy will focus on the revival and development of existing industries in the MSME sector, development of ancillary and downstream industries, infrastructural development and networking the units.

"However, a cluster approach for providing marketing competitiveness to MSMEs will be the central theme of the policy," an official of the state industry department said.

The government had already notified 19 clusters for development and the process was likely to gain momentum in future, he added.

The proposed policy will provide the infrastructure and marketing support to make MSME units competitive in the local market.

According to the state government figures, there were 87,861 small scale industries (SSIs) in the state in 2005-06. Out of these, only 1,200 units had an investment over Rs 1 crore. The total investment in all the SSI units was Rs 2,554 crore. These units provided employment to around 5.36 lakh people.

The Orissa government's Industrial Policy Resolution (IPR), 2007, aims to incentivise investment in priority sectors with a view to maximising value addition, employment generation and revenue augmentation.

In the micro enterprise sector, the policy aims to promote the linkage with micro-finance institutions, product development through design and technology support.

In the small and medium enterprise sector, the policy seeks modernisation of SMEs, rehabilitation of potentially viable sick industries and facilitation of greater institutional credit.

Industrial estates, which mostly house small and medium enterprises, are set to be overhauled with the government finalising an action plan for providing infrastructural facilities. The units occupying sheds in these estates had been demanding better infrastructural facilities since a long time.

To protect the units in the MSME sector from unhealthy competition, the state has introduced a government rate contract system. It has also introduced consortium procurement of inputs and consortium marketing of final products for these units.

Besides, efforts are being made to increase exports from this sector, which depend on large export houses in Kolkata, Mumbai and Delhi.

"To promote exports from the MSME sector, we plan to set up an export research centre and are in the process of formulating a new export policy," the government official added.

According to Hemanta Sharma, director of industries, Orissa government, SSI units in the state are provided marketing support by the Directorate of Export Promotion and Marketing (DEPM) while infrastructural support is given by the Orissa Industrial Infrastructure Development Corporation.

"These units are provided entrepreneurial assistance through the Small Industries Service Institute, Cuttack. Training assistance is provided by the Entrepreneurship Development Institute, Ahmedabad. Besides, the Directorate of Industries gives them various incentives from time to time," Sharma said.

To develop ancillary and downstream industries, the government has decided to upgrade five district industrial centres (DICs) at Raygada, Jharsuguda, Rourkela, Kalinganagar and Anugul.

These DICs will be conferred the status of regional industrial centres (RICs). An officer of the rank of joint director may head these DICs with three-four supporting staff. The state government has also chalked out plans to improve the service delivery of these centres.

While efforts are being made to promote downstream and ancillary industries in the metal and non-metal sectors, item specific parks are also being promoted.

As a part of this initiative, the state government is in talks with the National Aluminium Company Ltd (Nalco) for an alumina park at Anugul. Similarly, an auto component park is being set up at Choudwar.