MSME Board suggests reforms in six industries

The Micro,Small and Medium Enterprise Development Advisory Board put forward some crucial recommendations in a report recently,ahead of the Vibrant Gujarat Global Investor Summit scheduled for January 2013.

The Micro,Small and Medium Enterprise (MSME) Development Advisory Board put forward some crucial recommendations in a report recently,ahead of the Vibrant Gujarat Global Investor Summit (VGGIS) scheduled for January 2013. The MSME Advisory Board,an apex authority in charge of MSME development in Gujarat consisting of industry representatives,sector experts and government officials,put forward recommendations primarily on the states six major MSME sectors. The sector-wise recommendations include:

Textile and apparel :

*The state government allow the use of second-hand imported machinery.

*Duty of 12-30 % on imported garment machinery be removed.

*To increase the value addition of cotton and establish spinning zones and a technical textile mission.

Engineering sector

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*Establishing a special engineering estate at Sanand to promote the establishment of major automobile plants and start tailor-made courses for workers

*Removal of the 1.75% VAT on sale of engineering products in other states.

Plastic Industries

*Establishment of a dedicated plastic park in the auto-hubs of Sanand and Bahucharaji.

*Use of plastic parts in machines to save power is to be promoted in the state.

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*Dhoraji of Rajkot district to be developed as plastic recycling hub.

Gems and Jewellery

Local youths be provided training to suit the latest trends in jewellery manufacturing.

*The diamond industry needs a common facility or godown for a constant supply of diamonds. GMDC should tie up with diamond mine owners and ensure supply to Gujarat diamond industries.

*Government also needs to establish an export facility near Surat and establish an international standard Gemmology testing facility in co-operation with Gemological Institute of America (GIA).

Food & Agro-processing

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*Present credit plans for these industry needs to be made more effective.

*An export promotion facility for the food and agro-processing industry.

*An increase in the grant of Rs 50 crore for a mega food park and Rs 10 crore for a cold storage chain in state by the Ministry of food processing. The state government shall also give financial incentives.

*The VAT of 15 per cent on food processing and cold storage chain products needs to be removed or reduced

Minerals and Ceramics

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State shall allow the use of non-used bauxite for any upcoming aluminum plants in state.

The state is likely to amend the industrial policy before the upcoming Vibrant Gujarat Global Investor Summit in 2013, said a senior officer at the State Industry Department.

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