MSMEs feel they have got little space in UP's new industrial policy

New Delhi, July 7 (KNN) The Uttar Pradesh government recently announced the new industrial policy for the state. While the government projects that this will prove to be as a road map for development of industry in the state, there are mixed opinions among the MSME entrepreneurs. 

Talking to KNN, Sunil Vaish, President of Indian Industries Association (IIA) said that the new Industrial Policy is beneficial for the large industry whereas the Micro, Small and Medium Enterprises (MSMEs) seem to be missing from the framework of the government while drafting the policy.

“Initial assessment suggest that the focus of the government is to enable growth of the units that have huge investments, we feel that the MSME sector is not well considered while the formation of the document” said Vaish.

Citing the various incentives that the government has given under the new policy, he added that these incentives aren’t meant for a micro or small enterprise. For instance the new policy provides incentive on EPF reimbursement up to 50 per cent of employer’s contribution but the eligibility for the incentive is that the unit must engage 100 or more skilled jobs which directly mean that the micro and small units aren’t eligible.

Also there is a provision of additional EPF reimbursement up to 10 per cent on employer’s contribution but again the eligibility criteria for the incentive of having minimum 200 skilled and unskilled labours can’t be met by the MSMEs.

Vaish informed that his Association has met Anil Kumar, Additional Secretary, MSME State Department, in this regard. Responding to which the Secretary has assured that a separate policy for the MSMEs is likely to be introduced in the State.

Contrary to this, Naveen Jain, MSME entrepreneur from Muzzafarnagar said that the initial assessment of the policy suggests that the policy is comprehensive.

Commenting upon the decision of the government to divide the state into four zones, he said that this is a positive thing and area specific program might help the sector grow further.

Jain however maintained that this is just the initial assessment of the framework.

Earlier this week the Uttar Pradesh government announced the long-awaited Industrial policy for the state. Key focus of the policy includes creating banks, promoting industrial parks aiming at attracting FDI. Also a number of incentives were announced in the policy. (KNN/ DA)