By TIOL News Service

NEW DELHI, AUG 23, 2014 : AN interactive daylong Conference with State Ministers and Secretaries (Industries/ MSME) under the Chairmanship of Mr.Kalraj Mishra, Minister for Micro Small and Medium Enterprises (MSME) was held here today. The conference discussed the State specific issues, the implementation of key schemes and programmes of the Ministry of MSME.

Mr. Kalraj Mishra in his address emphasized the crucial role played by MSMEs in the economic and social development of the country. He emphasized on skill for every hand and employment for every hand. He said that the Sector contributes 8 per cent of the country’s GDP, 45 per cent of the manufactured output and 40 per cent of its exports. The MSMEs provide employment to about 60 million persons through 26 million enterprises. The employment potential is much higher than that in large industries.

Welcoming the State Ministers and Secretaries, the Minister said that the Government is committed to the growth of MSME Sector. While the Ministry is making all out efforts to promote and develop this Sector, the support and cooperation of the States/ UTs is very much needed. In addition to implementation of the Schemes, the Ministry also needs States’ and UTs’ support and suggestions in policy making.

The Minister further added that our first asset is skilled youth who have done Engineering, MBA, Polytechnic or ITI. In our country, about 16 lakh students pass out from such institutions every year. In this way, about 1.6 crore people have been trained technologically in the last 10 years. They are capable of setting up the enterprises provided they are given proper guidance. For this, States can play a vital role.

Every year, collateral free loan of Rs. 20,000 crore is provided to about 14,000 entrepreneurs. Kerala and Chhattisgarh have taken a lead in this aspect. Mr. Kalraj Mishra called upon the states to setup a mechanism for new entrepreneurs. He added if the states provide Rs. 100 crore for this, a collateral free loan of Rs.1000 crore can be made available through all banks.

The Minster also said that our second asset is infrastructure specially industrial parks and estates located in the States. As per the information compiled, more than 40,000 industrial plots are lying vacant in the country. Also, more than 20,000 plots are lying vacant in the SEZs. We can succeed in setting up millions of new enterprises on these vacant plots by formulating an appropriate policy. He informed that some states, particularly, Madhya Pradesh, have taken the lead in this direction.

The Minister also said that the process of simplification of forms and online registration will prove to be an important step for setting up new enterprises in the country.

The Minister highlighted some of the important initiatives of the Ministry- Credit Guarantee Fund Scheme, CLCSS, Cluster Development Scheme, National Manufacturing Competitiveness programme etc. and also outlined the 100 days initiatives of the Ministry.

Speaking at the Meeting, Mr. Madhav Lal said that the States role is far more significant in the implementation of various schemes and programmes of MSME.

Different wings of the Ministry of MSME i.e. O/o DC (MSME), SME Division and ARI Division made short presentations about their schemes and programmes. In the open discussion, various issues such as need of a single window registration mechanism, best practices in EM filing, utilisation of land at the State level came up. Some State Governments informed about their best practices in policy making and implementation of schemes for the promotion and development of MSME.