State MSMEs Demand Model Industrial Estates
Micro, Small & Medium Enterprises (MSMEs) of the State have called upon the 14th Finance Commission for creation of model industrial estates with infrastructure adequacy along with several fiscal and tax incentives for the sector.
Underlining the importance of infrastructure development to spur small enterprise in the State, the Odisha Industries Association (OIA) has suggested identification of five potential industrial estates and lacing them with roads, water, power, tech hubs, R&D facilities, labour and housing and community centres.
The existing industrial estates are in pitiable condition sans basic amenities like roads, water or even sanitation. Once developed, these can prove a breeding ground for modern MSMEs, giving a tremendous boost to productivity and employment. The Centre should provide for 100 per cent funding for infrastructure development of the model estates, the leading MSME body of the State has stressed. In a memorandum submitted to the Commission, headed by chairman YV Reddy, which held meeting with the State Government here, OIA president Abani Kanungo called for special attention to developing States like Odisha for development of MSMEs.
Though the single largest contributor to manufacturing and employment generation, MSMEs in Odisha have been hamstrung by lack of required support in terms of infrastructure, finances and marketing.
There are around 15 lakh MSME units in Odisha of which, almost the bulk is unregistered. The sector has generated employment for a whopping 33 lakh people. The Government of India has made a policy to procure 20 per cent of its requirement from MSMEs. However, the policy continues to be in papers only. The Commission should recommend making it mandatory for both the Centre and the State Governments. It may also consider waiving a portion of income tax as encouragement for MSME sector. A special rebate of 15 per cent on the accumulated tax may be allowed for individuals and firms and private companies declared as MSMEs.
"We have also suggested the Commission to consider turnover limit for getting out of the ambit of Central Excise raised to `5 crore from the present limit of `1.5 crore for Odisha", Kanungo said. Investments made by MSME for environmental pollution measures and research may be kept out of tax computations. A fixed low-rate term loan interest may be fixed for acquiring machinery and setting up industry housing and sheds, OIA has put forth before the Commission.
■Centre should provide for 100 pc funding for infrastructure development of model estates
■ Government of India has made a policy to procure 20 per cent of its requirement from MSMEs