MSME sector needs govt support: MCCIA

Dr Firodia said,“we believe slowdown is a result of our inability to bring in the reforms required in the Industrial and fiscal policies of the state.” According to Dr Firodia,they had several meetings with the CM and Deputy CM on various issues concerning the problems faced by the industry and initiatives required to achieve higher growth and also to attract industries from over the world to Maharashtra. “However,we feel pertinent to reiterate some of the points we had presented before the government for favorable consideration before the final presentation of the state budget,” he said.

The MCCIA said the Macro,Small and Medium Enterprise (MSME) is the most important segment of the state and is facing the brunt of the global competitive economy. “The sector needs nurturing and government support by way of improved infrastructure including uninterrupted,quality power supply,labour reforms,abolition of levies such as octroi and legislations such as Mathadi Act. The MSME segment deserves lean schemes like manufacturing cluster subsidies,subvention in taxes such as MVAT,” said Dr Firodia.

Firodia said to strengthen the modernisation and expansion plans of the MSME segment,it is necessary to establish parity with regards to industrial FSI applicable to Industrial units outside MIDC in zone B,C,D,and the existing units in MIDC area which enjoy a FSI of 1. “This will enable the industry to come over the scarcity of land in the industrial areas of the state. Whilst on this point the entire Industry in the state is demanding the abolition of octroi and an acceptable remedy could be merger of octroi in the MVAT.”

To strengthen the production and productivity of the Industrial units and achieve higher growth especially in industrial,rural and semi urban areas on mixed agri-industry power feeders,the MCCIA said the budget should at least provide Rs 50 crores in the first instance for converting the power feeder to industrial feeder.

Keeping in tune with the National Manufacturing Policy being formed by the central government,Firodia said the state budget should encourage mini industrial park as a PPP initiative on a minimum piece of land of about 50 acres. These mini parks are allowed either in B.C.D,zones or beyond 30 km.

As regards to the industrial infrastructure of Pune region,MCCIA has demanded an immediate allocation of about Rs 300 crore for Pune International airport at predetermined site and a provision to provide additional funding if required for speedy implementation of the project. “We also demand a time-bound execution programme for the Pune International airport project,” Dr Firodia added.