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CM Chouhan’s new MSME policy fails to woo the sector, lot more needs to be addressed: MPSSIO

Updated: Nov 18, 2017 06:05:57am

CM Chouhan’s new MSME policy fails to woo the sector, lot more needs to be addressed: MPSSIO

New Delhi, Nov 18 (KNN) In an attempt to boost the Micro, Small and Medium Enterprises (MSMEs) of the state of Madhya Pradesh, Chief Minister Shivraj Singh Chouhan rolled out the new MSME Policy at the inaugural day of the ongoing MSME and Entrepreneurship convention, however the policy fails to meet the expectations of the MSMEs, M.P. Small Scale Industries Organization informed.

Talking to KNN, Vipin Kumar Jain, Secretary General of Madhya Pradesh Small Scale Industries Organization (MPSSIO) informed that the MSMEs of the state were expecting a lot more from the government, but the announcement hardly touches on any of the expectation.

Explaining further, he outlined the major concerns surrounding the MSME sector that the policy failed to address.

Land: Lease hold – Free Hold

The MSMEs of the state, time and again have been demanding the government to permit the land holding from the lease hold mode to the free hold mode in order to assist the sector, despite assurances from the government, the norm failed to show up in the new policy, Jain said

Dual Taxation

Jain further lamented that at present, the industry pays tax at two levels on the land, one being the property tax and the maintenance tax, adding to the burden on the micro and small units.

The government must have taken cognizance of this demand in the policy, Jain said.

40 per cent grant provision

Commenting over the government announcing 40 per cent grant to the MSMEs, Jain expressed that the announcement is in line with the demand of the sector, but the rollout is not very comprehensive.

As per the announcement, the MSMEs will be disbursed the grant over a period of 5 years, this nullifies the purpose of the grant. If a unit needs the grant immediately and it is being given to him in instalments, it does no good, Jain said.

Industrial Estate Development Fee

At present the MSMEs are charged the industrial estate development charge and the units pay it willingly. But it hardly translates into any assistance for the unit. Each time a unit approach for the basic electricity connection, it is over-burdened with the task of setting its own transformer and infrastructure.

Factory License Fee

Jain informed that over the past years, the factory license fee has gone up by as much as 100 per cent. While at once it was two to three digit fees, it has multiplied every year. The industry sought exemption or if not assurance of it being constant, but the new policy doesn’t make any mention of it.

Jain informed that the main reason for the gap in the new policy is that each time the industry body made representation to the government, the government did assure action, but it got diluted due to the intra-department gaps within the state machinery, as a result of which the MSMEs are not able to be productive. (KNN/ DA)


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