Vidharbha, May 24 (KNN) The Maharashtra Government has formed a committee to review the reasons for closure of micro, small and medium enterprises (MSMEs) in Vidarbha and Marathwada regions of the state. Meanwhile, the MSMEs from the region said there are multiple reasons, lack of technology being the most common reason, for the closure of units.

State Finance Minister Sudhir Mngantiwar is heading the committee.

More than 30,000 units in the region have closed down. The Major factor for the MSMEs turning sick is lack of advanced technology, said Atul Pandey, President of Vidarbha Industries Association (VIA).

Talking to KNN, he said, “There are multiple reasons for the closure of units in the region. Some have failed on marketing front, some for finances, lack of business funds, some due to high power tariff and some because of outdated technology.”

Elaborating on the lack of funds, the entrepreneur said, “The funds are getting blocked into supplies to various Government departments.  But another major factor which is emerging is lack of advanced technologies in the industries. Globally, the technological advancements are taking place at much faster pace with which our MSMEs are unable to cope with,” he added.

He presses that much needs to be done for the revival of closed and sick MSMEs.

Pandey, however, appreciated the “genuine intentions” of the Government to help the units revive.

Despite taking lot of steps to boost ease of doing business, the revival of investment on SMEs is not taking place, he added.

The President revealed that in major industrial areas almost 40 per cent of the industries are either struggling or have already closed down.

He said electricity is another major factor for closure of the units.

The states need to do something to cut down the power tariff of the industry in order to make them competitive globally as well as in the domestic market, Pandey said. (KNN Bureau)