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UP MSMEs blame Akhilesh Govt for manufacturing activity slowdown, policy paralysis in state

Updated: Aug 26, 2016 11:15:05am

UP MSMEs blame Akhilesh Govt for manufacturing activity slowdown, policy paralysis in state

Mussoorie, Aug 26 (KNN) The MSME entrepreneurs from across Uttar Pradesh, which is set to go on Assembly polls next year, feel that there is hardly any manufacturing activity taking place in the state mainly due to failure of the state government in implementation of the policies effectively.

More than 150 entrepreneurs from all over Uttar Pradesh participated in a recently concluded two day Annual General Meeting of Indian Industries Association (IIA) at Mussoorie.

The live examples of pain and frustration experienced by the delegates while dealing with the “Government Machinery” in the state overshadowed the proceedings, IIA General Secretary Pankaj Gupta said in a statement.

The general feeling was that in spite of the interest of Chief Minister Akhilesh Yadav in industrial development, as evident through some policy measures though often tilted in favour of large business, implementation has failed miserably, IIA said adding that as a result of this, hardly any manufacturing growth is taking place commensurate with the size of the state.

IIA members said, near absence of the interaction of the Chief Minister with the MSMEs is being taken by the bureaucracy as a signal that the MSMEs in the state hardly matter, the industry body said.

The ground level functionaries are so emboldened as to force entrepreneurs to pay up for even routine matters and rightful work some of them even claiming their close proximity to the CMO. The Government Machinery has become dysfunctional at different levels and across key departments related to industry, Gupta said in the statement.

The entrepreneurs feel that Udyog Bandhu has been reduced to a routine government department, just watching movement of files from one to the other department.

UPSIDC the main instrument for providing vital inputs for Industrial Development of the state, IIA said, is functioning like a modern day “zamindar” exploiting entrepreneurs on every count and, not letting the CM release them from its clutches to sub-serve the vested interests of just a few.

Industries in U.P are being harassed by it through exorbitant increase in the maintenance charges, denial for allotment of industrial plots to deserving & needy entrepreneurs, delays in approving industrial maps, plot transfers and harassment of lessees of industrial plots for one or the other reasons, said IIA.

“The institution today is an epitome of lack of transparency,” it added.

Further, the MSMEs pointed that land is not available for setting up industries; the condition of industrial areas is so pathetic -due to poor or no maintenance- that entrepreneurs hesitate to invite their buyers to their factories especially foreign buyers.

In the districts, the municipal corporations and development authorities by sitting on the files for approval of building maps etc and in the name procedural matters are exploiting entrepreneurs with impunity.

While electricity tariffs are being reduced in some of the forward looking states, Uttar Pradesh has not been able to stop itself from further burdening the LMV-6 consumers the category of Micro & Small Industries.

“The state continues to enjoy the status of one of the costliest electricity suppliers to the industries. Inefficiencies of the DISCOM's which are increasing by the day are being loaded on to the consumers by way of regular increases in the electricity tariff besides regulatory surcharges, Demand and Minimum charges,” IIA said.

Absence of empowered authorities who can be approached in case of blatant misuse of power, is leading to unbridles corruption.

Example was cited where someone implicated falsely by unsocial elements and in spite of authorities knowing the facts, the innocent has no option but to pay bribe or else be subjected to face the trial in the court.

Laws made to give some succor to MSMEs are not implemented. One of the examples quoted by the delegates is of MSMED Act 2006 which provides that the delayed payments of MSE’s will be facilitated through MSE Facilitation Councils constituted in the states. Meetings of the Councils headed by the Director & Commissioner Industries have not been held in UP for several months since September, 2015. As if to show their apathy to aggrieved entrepreneurs, the meeting dates decided in advance, are cancelled at the last moment resulting in further harassment to the Micro & Small Entrepreneur who had traveled from far off places. As a result the pending cases in UP MSE Facilitation Council has swelled to 200 in June, 2016 compared to 54 September, 2015.

The problems and issues taken up with the Government are kept pending indefinitely and there is no monitoring of the disposals at any level, the members discussed.

Government orders related to purchase & price preference or the provisions of the procurement manual for MSME's are being flouted by the Government Department and complaints against such irregularities also go to the dustbin.

It was decided in the Annual General Meeting of IIA that the rapidly declining confidence of entrepreneurs as exemplified by some of the above issues, will be brought to the notice of the Chief Secretary, the Advisor to the Chief Minister, and the Chief Minister himself.

“If the situation does not improve, IIA will have no option but to resort to path of agitation all across the state,” the statement said. (KNN Bureau)


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