'Neglected' MSMEs threaten to boycott GIS 2014

BHOPAL: Medium small and micro enterprises (MSME) at state's backyard feel neglected and have threatened to boycott global investment summit to be held in Indore from October 8 to 10. This, as chief minister Shivraj Singh Chouhan is luring investors and boasts of involvement of seven countries as international partners for the event.
MSME representatives have charged the state government with not keeping up promises made in last 10 years.
In every election from 2003 to 2013, BJP promised a separate department for MSMEs in its manifesto, but it never turned into a reality. In last 10 years, state's focus has been on big and mega industries. MSMEs are no where in picture", said president of Association of Industries, Dewas, Ashok Khandelia.
Government has now promised a lot, including reforms in land allotment and industrial policy- both to be MSME friendly- but how much is delivered is yet to be seen, he said.
On August 28 in a meeting with industries commissioner, VL Kantha Rao in Bhopal, a large number of representatives of MSMEs were angry over land allotment policy for MSMEs. Many threatened to boycott GIS as MSME sector was completely neglected for years.
"Their entire focus is on GIS and they are visiting international markets seeking investments, but there is no focus on state. It is an eyewash. They call us just for participation and nothing happens thereafter," said Deepak Sharma, president of Madhya Pradesh Laghu Udhyog Sangathan (LUS) who was also present at the August 28 meeting.
He said MP government has not adopted in letter and spirit MSME Act passed by Parliament in 2006 that was to be adopted by states till 2010. Besides, government has not revised its store purchase rules since 1976.
"Whatever, is being talked about during the GIS sounds good. But there is nothing on the ground for MSMEs. Look at Govindpura Industrial Estate. It is like a hell," said Ashok Patel treasurer of LUS.
"I am ashamed to let my clients from abroad visit my unit in Govindpura", he said. "I remember during our last meeting with local MLA and former MP Kailash Joshi, when the issue of encroachments was raised, the MLA objected saying they were his voters."
"Government is focused on mega industries which get land at subsidized rate and come with highly modern machines generating employment for about 100- 150 people. But maximum employment is generated by MSMEs" Said Khandelia of Association of Industries, Dewas.
For record there are about 1.09 lakh registered MSMEs generating employment to 45 to 50 lakh people in state.
MP Laghu Udhog Sangathan president Deepak Sharma said, "Craters on Govindpura Industrial Area is an example of the plight of MSMEs in MP. The only industry that can flourish here is fisheries in the ponds and potholes of the roads during monsoon."
Talking to TOI, industries commissioner VL Kantha Rao said, "We have probably the best scheme for the MSMEs. Mukhya Mantri Yuva Udhami Yojana is all about promoting them where assistance up to Rs 1 crore is given and the government takes the guarantee."
Besides, he said, "MSMEs have been put at par with other industries. It started with special convention of MSMEs in 2012. It would continue this year also, they are not at all neglected."
Rao said in every aspect of policy, interests of MSMEs are taken in account. According to him, MSME Act has been implemented in state. Facilitation council for MSME is the best in MP and has been appreciated by Centre too. "Quasi-judicial proceedings take place in the council and I myself have cleared as many as 50 cases in favour of MSMEs."
Rao said "a comprehensive investment promotion policy is coming along with land allotment policy. They are going to be simplified and investor friendly. We have sought objections and comments on the policy before we finalise it."
Rao also said government developed land and then gave to MSMEs. Government is also considering transferring industrial areas under district industries centre to Audhogik Kendra Vikas Nigam, but the MSMEs are objecting.
"A final decision is yet to be taken", he said.
He said majority of incentives are available for MSMEs in state including interest subsidy facility. For MSMEs in the state government developed land by its funds and then hand over to them at subsidised rate.