MSMEs urge Odisha government to raise allocation in state Budget
BHUBANESWAR : Ahead of state Budget 2026-27, the MSMEs and entrepreneurs’ associations have urged the state government to increase allocation for the sector and ensure better credit facility and market access for securing their growth and generating more employment.
While the allocation for the sector in 2025-26 Budget stood at a little over Rs 1,500 crore, the associations have urged Chief Minister Mohan Charan Majhi to substantially increase the allocation focusing on improved credit facility, infrastructure, skill development and market support, especially for the MSMEs operating in rural, tribal and backward districts.
Odisha Young Entrepreneurs’ Association president Mihir Kumar Kanungo said funds should also be allocated to strengthen all directorates and district industries centres under MSME department.
“The government should also introduce a separate MSME service sector policy to formally recognise and support service enterprises such as IT, logistics, facility management, healthcare support, tourism, pest management, etc., with sectorwise targeted schemes,” Kanungo said.
Focus should also be on skill development programmes and technical courses for service sectors to boost employability. There should be expansion of collateral-free loans through state-backed credit guarantee and working capital-based financing along with interest subvention to ease liquidity constraints of MSMEs and small service enterprises.
“The government should also work on simplification of compliance for ease of doing business and set up district-level incubation centres, seed funding support and structured mentoring networks to promote youth-led startups and innovation-driven enterprises,” he said.
Orissa Small Scale Industries Association (OSSIA) president Samarjit Mohanty said the Budget should prioritise development of MSME industrial parks and clusters in all districts to improve competitiveness.
“Establishment of common facility centres (CFCs) including testing labs, tool rooms, warehouses and logistics facilities and provision of basic amenities and worker hostels in industrial estates also needs to be prioritised,” Mohanty said.
The government should also take steps for creation of a state-level MSME payment facilitation and monitoring mechanism and introduction of interest subvention or working capital support schemes for MSMEs supplying to government agencies, he added.
Delayed payments, particularly from government departments, PSUs and CPSUs, continue to choke MSME cash flows. Strict enforcement should be in place for time-bound payments to MSMEs, he said.