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19/02/2020 01:03pm

MSMEs in UP disappointed with state budget

image MSMEs in UP disappointed with state budget

New Delhi, Feb 19 (KNN) The Micro, Small and Medium Enterprises (MSMEs) in Uttar Pradesh expressed their disappointment with state's budget presented by State Finance Minister Suresh Khana on Tuesday.

The MSMEs in Uttar Pradesh contribute greatly towards the economy and employment generation after agriculture. As per the government data, 89 lakh MSMEs exist in the state. In this context the state ranks first in the country in terms of number of MSME entrepreneurs. The state has about 14 percent share in the total MSMEs in the country.

''In the budget presented on Tuesday by the Finance Minister of Uttar Pradesh, budget provisions have been made for agriculture, infrastructure facilities like roads, airport etc., medical facilities, city development, education and social activities. But for micro, small and medium enterprises, there is hardly any budget except Rs 250 crores for One District One Product (ODOP) scheme,'' said Indian Industries Association (IIA).

The industry body also said that in almost all the industrial estates located in Uttar Pradesh, there is a lack of infrastructure facilities like roads, water and drainage etc. Due to which customers coming from outside the states / countries in these industrial areas, gets a poor image. In some places, industries are being closed due to restrictions on ground water extraction and due to non-availability of piped water supply.

''IIA was expecting that in this budget, budget provision will be made to improve these infrastructure facilities in industrial areas. There is no international level exhibition venue in the state capital which is absolutely necessary to promote products of UP Industry. The use of natural gas in industries is required to be promoted for keeping the environment clean for this also we expected that some provision will be made in the budget, which we could not find,'' it said.

Commenting on solar energy, IIA said that the targets of solar energy generation were mentioned in the budget. But Rooftop Solar Installation is viable for domestic use only as net metering is allowed and subsidy is also available. However, for institutional and industrial use neither net metering nor any subsidy is provided.

''Hence to meet the targets and to protect the environment, IIA was expecting to promote use of solar power in institutional & industrial sector and make same provision in the budget which we did not find, IIA added.

However, IIA hoped that since the budget allocation is high it will increase the demand of MSME manufactured goods.

''Compared to previous years, the budget allocation is highest at Rs 5 lakhs 12 thousand 860 crores. It is therefore expected that there will be some increase in the demand of goods manufactured by MSMEs of the state,'' IIA said.

IIA further alleged that no special announcement was found in the budget for the encouragement of young entrepreneurs.

''Provisions have been made in the budget for youth employment and youth Hub at every district. Any young entrepreneur starts his business from micro / small scale only. Initially, these young people need encouragement to set up business, for which nothing special was done in the budget,'' IIA avowed.

The announcement of the establishment of the State Policy Commission on the lines of the Government of India is a welcome step, said IIA.

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