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2014-08-29

UCCI seeks formation of MSME Task Force in Odisha

Stressing on the potential of MSMEs in job creation and skill development in Odisha, UCCI sought formation of a Task Force for redressal of problems faced by the sector and chalk out a plan for start-up units.

Stressing on the potential of MSMEs in job creation and skill development in Odisha, Utkal Chamber of Commerce and Industry (UCCI) sought formation of a Task Force for redressal of problems faced by the sector and chalk out a plan for start-up units.

 

Pointing out that the MSME sector was "languishing" both in the field of start ups and existing units in Odisha, UCCI President Ramesh Mahapatra said in a letter to Chief Minister Naveen Patnaik, "To overcome such difficulties in MSME sector, we would request you to kindly form a Task Force under the chairmanship of Chief Secretary to draw out a proper plan both for start-up Units and also redressal of difficulties of the existing units." 

 

Stating that the industries department of the state and MSME were planning to bring out a new IPR & MSME Policy, the UCCI president claimed that most of the clauses of the IPR and MSME Policy declared in 2007 and 2009 had not been implemented in the absence of notification by concerned departments. 

 

Therefore, before unveiling a new policy, the Task Force should go through the reasons for non-implementation of the earlier policy and talk to different departments, PSUs and agencies, the letter said. 

 

After ascertaining the reasons for non-implementation of the policy by different departments, the Task Force should suggest remedial measures to be incorporated in a new policy to ensure its implementation, the letter said. 

 

On problems related to land, the UCCI said many educated engineers and youths were planning to start new ventures in MSME sector but the burning problem was to get land, the letter said. 

 

"The MSME units cannot purchase stand-alone private land and would not be in a position to develop infrastructure to run an MSME unit. So, ideally they should be located inside the industrial estates. But, for the last 15 years, IDCO has not built industrial estates to house the MSME sector, in spite of repeated requests of entrepreneurs," it said. 



The Task Force would find out the reasons for this and either prevail upon IDCO to build new industrial estates or can suggest for a separate MSME infrastructure wing in IIDCO exclusively for the development of industrial estate for the MSME Sector, or even create a separate Infrastructure Development Corporation for the MSME sector, it said. 



Stating that MSME associations have time and again sought steps to rationalise VAT structure in comparison with the neighbouring states, the chamber said MSME sectors of the state are in a disadvantaged position and are not able to market their product due to disparity in VAT structure.

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