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Odisha mulls new MSME policy

Aiming for vibrant growth of the MSME (micro small and medium enterprises) sector, the state government plans to formulate a new MSME development policy, apparently laced with new subsidy sops for the sector.

The MSME Development of Policy -2009 will be replaced with a new MSME policy to be formulated in 2015, said Panchanan Dash, state MSME secretary. We will seek views from all the stakeholders, he added. As per latest census, there are about 1.5 million MSME units in the state providing jobs to about 3.3 million people and Odisha ranks among the top ten states in terms of providing employment. The growth rate of MSME in Odisha is 32 per cent against the all India rate of 28 per cent. Similarly, the growth rate in creation of jobs opportunities in the sector is 29 percent against the national average of 26 per cent.

The other leading states in terms of MSME job creation are Uttar Pradesh (9.23 million people), West Bengal (8.578 million), Tamil Nadu (8.09 million), Andhra Pradesh (7.069million), Maharastra (7 million), Kerala (4.96 million), Gujarat (4.77 million), Karnataka (4.672 million) and Madhya Pradesh (3.36 million).

During 2012-13, 5,931 MSMEs had gone into production in the state with investment of Rs 432.90 crore and 27,104 persons got employment in the sector, according to the Economic Survey report-2013-14.

For growth of the sector, that generates largest employment after agriculture in the country, the state government has been organising trade fair under the banner of Odisha MSME Trade Fair for last three years. The state government is contemplating setting up of a separate cell at the Odisha Small Industries Corporation Ltd (OSIC) for taking up infrastructure development for the MSME sector.

OSIC is preparing the bye laws for execution of the infrastructure projects for the MSMEs. Officials said, with the state turning out to be a favoured destination for large scale industries, the scope for the growth of MSMEs is fairly large by way of downstream and ancillary units.

The plan for formulating new MSME policy is a welcome step and timely as both the state and the Union government have identified it as a thrust sector. The emphasis should be given on ease of doing business in the new policy, said Ramesh Mohapatra, president, Utkal Chamber of Commerce and Industry (UCCI), the apex industry chamber of the state.

SOURCE: Business-Standard

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