Odisha MSMEs urge CM Patnaik to convert industrial lands from leasehold to freehold

Bhubaneswar, Mar 5 (KNN) As many as nine Micro, small & medium enterprise (MSME) associations in Odisha have urged the State Chief Minister Naveen Patnaik to convert the status of allotted lands from leasehold to freehold.

With regard to this matter, KNN India spoke to the President of Uttkal Chamber of Commerce & Industry, Ramesh Mahapatra who stated that that MSME growth has substantially decelerated due to leasehold nature of the land.

He said that leasehold discourages establishment of new enterprises as well as creates trouble for next generation after 30-45 years of leasehold.

Possession of land on freehold has been our long pending demand in the state and this is not new as many other states like Gujarat, Delhi, Telangana and Utter Pradesh have already done it to promote industries in their respective states, he added.

He stated “Lease is not a permanent solution for the challenges being faced by MSMEs in state.”

Apprising the Minister about the troubles being faced by MSMEs due to allotment of land on leasehold, the industry bodies stated that MSMEs growth retarded due to inadequate credit flow, non-availability of real time co-lateral security and the need of various NOCs (No Objection Certificates) due to leasehold nature of the land.

There are around 50,000 MSME units operating in 106 industrial estates in the state where around 4200 units have been allocated nearly 5000 acres of land against due payment. These MSME units provide direct employment to 150,000 workers supporting around 500,000 families.

“Chief Minister in a meeting with industry associations agreed in principle to look into the matter in a positive way”, said MSME associations in a statement.

The associations also requested chief minister to come out with a conversion policy for MSME of the state.

They also suggested that the MSME units may be allowed to apply for conversion of leasehold land to free hold only after completion of five years operation and use the land only for commercial use after paying a reasonable conversion premium.

The associations included Utkal Chamber of Commerce and Industry (UCCI), Odisha Assembly of Small and Medium Enterprises (OASME) and North Orissa Chamber of Commerce & Industry (NOCCI), Odisha Small Scale Industries Association (OSSIA) and Odisha Industries Federation(OIF). (KNN/YV)