BHUBANESWAR: With India gradually making its place as a global toy hub - the latest statistics revealing a 61 per cent rise in exports in the last three years - Odisha is keen to join the country's toy story. Pitching for a fast-mover advantage, the Assembly standing committee on Micro, Small and Medium Enterprises (MSMEs) has recommended the State government to set up mega toy park in Odisha.
The recommendation of the standing committee headed by BJP MLA Mohan Majhi came in the wake of Central government approving eight toy manufacturing clusters in five states at a cost of Rs 2,300 crore last year. The committee emphasised the huge opportunities in the toy industry that will, in turn, give a huge boost to the local MSME sector.
The ongoing stand-off with China and import restrictions on many items including toys from the neighbouring country provides a bigger opportunity for entrepreneurs of the State to invest in toy manufacturing which will generate employment for a large number of people, the committee has stated.
"This opportunity should be grabbed by the government as well as the MSMEs. In order to facilitate this, a mega toy park should be promoted which can be touted as a Toy Hub at the national level," its report said.
The proposed park can house common facilities and service centres to reduce cost of production. Adequate concessions like land, tax rebate for a limited period should be provided to the MSMEs. This will not only create a new generation of entrepreneurs but also boost the industrial atmosphere in the State, the report said.
Noting that MSMEs lack expertise in product development technology adoption and marketing strategy, the House committee said the government should build network of development of service providers that can provide customized solutions to enterprises. Capacity building of the entrepreneurs is an essential prerequisite for development of the sector.
Expressing concern over delayed payment to MSMEs supplying goods and services to the government, the committee said this has severely hit the entire supply chain as most of the enterprises do not have enough liquid funds or access to funds from formal financial institutions.
Most of the MSMEs hesitate to enforce legal provisions available to them under the Micro, Small and Medium Enterprises Development Act due to their low bargaining power. Moreover, they are scared of reprisals from government officials who often resort to vindictive actions, the panel stated.
“A portal may be created for government to private sectors payables. It will not only bring transparency but also help in reducing frauds and misappropriation of data. This will also reduce bureaucratic delays in payment,” the committee recommended.