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Budget Spl: Jharkhand MSMEs expect better infra & disciplined bureaucracy for MSMEs

Updated: Jan 20, 2017 12:22:51pm
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Budget Spl: Jharkhand MSMEs expect better infra & disciplined bureaucracy for MSMEs

Ranchi, Jan 20 (KNN) With the traditional ‘halwa’ ceremony being performed in the Finance Ministry, the speculations about what would be included in the budget and what not is increasing.

Industrialists from Jharkhand, in their wish list to Finance Ministry, have sought a corruption free bureaucracy and priority to small sector industries with better infrastructure.

KNN spoke to various industries in Jharkhand and asked about their suggestions and demands.

Federation of Jharkhand Chamber of Commerce & Industries (FJCCI) told KNN that government is only focusing over large scale industries and it is responsible for the present condition of small industries.

“The whole interest of the government is to facilitate the large sector due to which small Industrial sector is in very bad condition today. The government should provide priority to small sector as it also creates employment,” said Ranjeet Kumar Garodia, General Secretary, FJCCI.

Similar to his recommendations, Secretary General of Jharkhand small industries Association (JSIA) said that government always emphasizing over the welfare of the workers, but policies are needed to facilitate small industries’ as well.

“There should be some social security council for the industries which include modules like health coverage or other benefits because at the time of recession, it is industrial sector to bear the maximum loss,” said Deepak Kumar Maroo, Secretary General, JSIA.

While expressing the reason behind, FJCCI said large industries are able to make good relations with the government, according to him which benefits the large sector.

“Large sector has good relations with the government and for micro & small sector it is not as easy to connect with government,” said Ranjeet.

According to Managing Director (MD) of Kross Manufacturers (I) private limited, cheat of excise exemption need to be countered.

“Excise exemption is one of the thing which has been misused by the industries. One family forms a company under which family members run different companies and enjoy this Rs 1 crore exemption, this is unfortunate of the industries,” said Sudhir Rai, MD, Kross Manufacturers.

 

He said Finance Ministry needs to enhance the exemption limit of income tax.

“Reducing income tax by one or two lakhs is of no use, it has to be minimum exemption of 6 to 7 lakhs and corporate tax should not be more than 28 percent (35% at present),” appealed Sudhir Rai.

 

Emphasizing over the infrastructure of the industrial sector, he said “If Finance Minister would spend on infrastructure, it automatically would benefit the industrial sector”.

While citing the land issue Federation has given an example of Deoria industrial area that after improper allotment of land, small sector is force to sell the alloted land. 

“Land is one of the major problems in the state. One recent case is from Deoria industrial area where small industrialists were left with no other option than to sell the land through auction,” added Ranjeet.

Corruption under the bureaucracy is one of the common issue which comes out after talking with different industries of the state.

According to FJCCI, bureaucracy has eaten up the small units whereas big industries approach directly to them and get facilitated by the bureaucrats.

“At grassroots level, work status is negotiable though Chief Minister wants to do work for the industries but bureaucrats keep on putting obstructions,” said Ranjeet, General Secretary, FJCCI.

JSIA citing corruption, revealed that the laws and order made by central government are not being followed.

“The law and order made by the central government for the promotion of the MSMEs are not reaching the industries, as state has no coordination with the central government because of gap between Centre and bureaucracy,” Deepak Maroo, Secretary General added.

He also told that the association has demanded the government to set up ministry at state level as well because even after providing huge employment opportunities, small industries are being ignored.

“There should be a State level Ministry similar to Union Ministry and government should also set up a committee for the accountability of bureaucracy,” said Deepak,SG, JSIA.

Industries also seemed unsatisfied with single window system, announced in the Budget 2016.

“Single window has also been proved failed. Recently 10-12 units those had applied for the registration, openly said before Chief Secretary that they have to give bribe in each department for clearances,” said Ranjeet, General Secretary, FJCCI.

The single-window system is a trade facilitation idea. As such, the implementation of a single window system enables international (cross-border) traders to submit regulatory documents at a single location and/or single entity.

According to FJCCI, “the mind-set need to be changed as there are multiple problem being faced by the small industries in the state,” General Secretary said.

Secretary General of Jharkhand small industries association (JSIA) appealed government to implement the ‘ease of doing businesses’ at ground level.

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