Entrepreneurs in the SME (Small and Medium Enterprises) sector in the state have sought a hike in investment subsidy from Rs 10 lakh at present to Rs 15 lakh and also the increase in subsidy cap from Rs 8 lakh to Rs 15 lakh.
They have also demanded the creation of a Technology Upgradation Corpus Fund to the tune of Rs 20 crore for 2010-11 and have pointed out that a budgetary fund needs to be made for this purpose.
Speaking at an Open House Session held on the concluding day of the Sixth Entrepreneurs' Week-2010, Niranjan Mohanty, past president, Utkal Chamber of Commerce and Industry (UCCI) said, “The MSME Development Policy of the Orissa government is not competitive compared to neighbouring states like West Bengal. While the investment subsidy ranges from 15-30 per cent in West Bengal and 20 per cent in Andhra Pradesh, it is only 10 per cent in Orissa.” He stressed on the need to make the MSME Policy of the state competitive to attract investments in the sector.
SME entrepreneurs have also called for the constitution of a separate ministry in the state for Micro, Small and Medium Enterprises (MSMEs).
“There should be a separate ministry for MSMEs in the state. A separate ministry for the small scale units at the Centre has been working successfully for the past 13 years”, said Sarat Sahoo, president of Orissa Small Scale Industries Association (OSSIA). Responding to the concerns of the MSMEs, T K Mishra, Chief Secretary, Orissa government said, “A committee has been formed by the state government to constitute a separate ministry for MSMEs. This committee will have a meeting after the Assembly session of the Orissa Legislative Assembly and will study the best practices of the MSME ministries of other states.”
On the demand for restructuring of the Directorate of Export Promotion and Marketing (EPM), Mishra, an empowered committee has been constituted to take up this issue.
On issues pertaining to marketing, the SME entrepreneurs said, “The procurement policy is not applicable to the purchases made at the DGS&D (Directorate General of Supplies and Disposal) account and this should be deleted. Moreover, the price preference of 10 per cent for the SMEs is considered only against competitive offer from the medium and large enterprises and this preference should be given for any other tender.”
In case of composite tenders, the concerned department should procure the goods covered under EPM rate contract directly and rate contact items should not be included in the tender, they stated.
