All is not well with the MSMEs in Kerala, Govt Claims of EODB falls flat : CAG report

New Delhi, May 24 (KNN) The report by the Comptroller and Auditor General on Public Sector Undertakings that was released recently revealed that the Micro, Small and Medium Enterprises (MSMEs) in the state have had difficult times due to improper functioning of government’s bodies such as KSIDC, KFC and Industrial growth centres.

The CAG report said that there is a stunted growth of the MSME sector due to the lack of appropriate infrastructure. There have been long delays in the completion of multi-storeyed industrial estates that were supposed to house the MSMEs, thus resulting in haunted growth of the sector.

The proposed Common Facility Centre under the MSME-Cluster Development program was found not in place.

The report further stated that the existing industrial parks were found under-utilized. Actual utilisation of developed land in the industrial growth centres established by the KSIDC was less than 50 per cent. The main reason for the poor turnout of the MSMEs in the Industrial parks could be the lack of appropriate infrastructure in these parks.

The government’s claim of ease of doing business and one window clearance seems to fall flat as per the CAG report. The audit reveals that in Palakkad, Pathanmthitta and Kozhikode districts of Kerala, out of 252 applications that were received for single window clearance, only 16 were cleared in the designated time period, while the rest of the applications took up to 3 years for the clearance.

Also the report revealed that majority of the MSMEs in the state didn’t have access to the Single Window mechanism, responding to which the Commerce and Industry officials said that the delay was due to the State Pollution Board taking long to give the clearance.

(KNN/ DA)