New Delhi, Nov 28 (KNN)  Large scale employment generation by promoting small and medium enterprises through an eco-system that sweeps hurdles off their way in doing business should be a promise made by the Congress Party in its manifesto for the next general elections in 2011, V K Agarwal, Lucknow-based entrepreneur and a pioneer in the MSME sector has said.

“The Indian National Congress (INC) should promise a radical step of giving a huge boost to employment by creating an eco-system that will sweep all the hurdles in the way of small and medium enterprises and thus encourage young generation of India to opt for entrepreneurship as a career of choice,” he said while making suggestions for the election manifesto of the largest constituent of the UPA Government.

Agarwal, who founded Shashi Cables Ltd that manufactures ACSR conductors, said, the UPA, if re-elected, should give a huge makeover to the administrative set-up so that an immediate redressal is available to the MSMEs in case they run into any administrative difficulty.

“To realize the promise, the administrative set up in the country will be given a huge makeover. The key elements of the plan will be setting up of ‘Grievance Redress and Reforms Cells’ in every government office with which the small enterprise owners have to deal with in setting up and running their enterprises.  Any complaint or grievance an entrepreneur may have against a department, its process or personnel could be sent to this cell. Every complaint so received will be put on a website”, he said.

Agarwal, a Science graduate from St Xavier College, Kolkata who also did his LLB from the University Law College, Kolkata  would like a  commitment from the major political parties to help create an environment in the country, which is conducive  to entrepreneurship.

As per his suggestions, a status report on complaint resolution would be regularly posted on the website and could be viewed by the complainant or any member of the public, subject to permission of the complainant to this effect. These cells will receive and dispose off complaints of entrepreneurs in a strictly time bound manner. The issues not settled at the level of the concerned department will be escalated to next level of an empowered committee until the issue is decided fully and finally.

“These cells will not only provide succour to entrepreneurs but also provide a wealth of information which will be collated across suitable matrices to evolve systemic solutions in the form of new processes,” Agarwal, who has been a Visiting Faculty to the prestigious IIM, Lucknow, said.

He said such a scheme can be a game-changer for the small entrepreneurs, the way the UPA flagship Mahatma Gandhi National Rural Employment Guarantee (MNREG) scheme not only gave breather to the poorest of poor of India living in the rural areas but also raised wage levels of the lowest paid employees and workers across the country.

The wage level was increased more through market forces, influenced by the MNREG, which proved to be an Indian equivalent of the economic stimulus given in the western nations which directly came under the global financial crisis in 2008.       

“This is extremely important – regulations are circumvented but market forces cannot be avoided, hence the rise in wages this time has come to stay for good. Maybe only a few realize that the MNREG was the scheme that helped the central government to save the country from the economic meltdown witnessed in the rest of the globe. It proved to be the Indian equivalent of economic stimulus that perfectly met our long term needs as well,”

Likewise, he said the Food Security Law which gives a legal entitlement of rice and wheat at ultra-low cost, will be the saviour for poor.  Along the way, by giving nourishment to the deserving it will usher in a new generation of people - sound and strong in body and mind and thus bring lasting benefits to the country.

Another “revolutionary” step initiated by the UPA Government was the Right to Information Act (RTI). “The RTI is a revolutionary step in the annals of democracy anywhere in the world.  Aam Admi in India can now participate in governance at all levels. The Act has shaken up the ‘SYSTEM ‘ even though only a fraction of its potential  has been utilised so far,” Agarwal, also member of the National Social Security Board for Unorganised Workers, said.

He has also served as the President of the Federation of Indian Micro & Small and Medium Enterprises (FISME).   (KNN/PC)