VISAKHAPATNAM: To strengthen the MSME sector in the district, the district administration has appointed a 12-member committee, including former chairman and managing directors of RINL, BHPV and HSL Siva Sagara Rao, Venkateswarlu and RL Bhatiya respectively. Though there are several large-scale industries in the district both in public and private sectors, MSME products do not have demand in the district.
The major PSUs like the RINL, BHEL, Hindustan Shipyard and NTPC, procure over `5,000 crore worth of MSME products annually. However, the local MSME is not getting its share as most of the materials being procured by the industries are from other districts and states. The Union government has prepared a public procurement policy-2016 in which, the government clearly mentioned that every PSU should procure at least 20 per cent of its material from MSME sector. The Centre has also asked the state government to prepare its own policy to promote the MSME sector.
Post-bifurcation, Visakhapatnam has emerged numero uno in the industrial sector. However, the sale of MSME products in the district does not even cross five per cent. The Centre has clearly mentioned that by strengthening the MSME sector GDP will increase and asked the State governments to take measures towards strengthening the MSME sector.
To create more employment opportunities and to increase the GDP, the district administration has appointed the committee to prepare a State policy to boost the MSME sector. Collector is the chairman while general manager, Industries department, is convenor of the committee. The committee will have discussions with the PSUs and major industries and register their needs and standards and will suggest further measures to upgrade the MSME products.
“The former CMDs of RINL, BHPV and HSL will study the entire scenario of the sector and the needs of the industry. Though there are thousands of MSME units in the district, sales are not much. The committee will study the problems of the PSUs to procure local MSME products. The issues in the MSME sector like standards of the products, manpower, finance and upgradation of technologies will be studied and the committee will submit a report to the government. The report is not only for the Visakahpatnam MSME sector, it will be a State policy document to boost up the sector across the State,” said Ramalinga Raju, the convenor of the committee and general manager of the Industries department.
Collector Pravin Kumar also promised the sector to ensure 16 major PSUs to buy the MSME products locally. The collector said that loans, lack of marketing skills and experience were hurdles in the setting up of MSME units. There was a need to provide training to the MSME entrepreneurs both in finance management and technical aspects, Pravin Kumar said. The newly-appointed committee would submit its report.