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NorthEast.9.thmb.jpg 'Shift thrust from big industries to MSME sector'

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SME Times News Bureau | 15 Jun, 2012

The Forum of Industries and Commerce Ministers of North Eastern States (FICMNES) Thursday asked the central government to shift the thrust from big industries to micro, small and medium enterprise (MSME) sector to develop the region.

"The North East Industrial and Investment Promotion Policy (NEIIPP), 2007 is a very unique policy and proved beneficial for the whole region. However, none of the northeastern states are in a position to give land to private parties to set up big industries," chairman of the forum and Assam Industry Minister Pradyut Bordoloi said.


He was here to participate in the mid-term review of the NEIIPP.


"Some of the northeast states also have the problem of hilly terrain and so it is difficult to give land to private industries to set up big industries. So we feel that the government should shift the thrust from big industries to MSME sector," Bordoloi said.


The Assam industry minister, however, defended the NEIIPP, 2007 and said that the unique policy had invited about 336 investment proposals in the entire northeast region in the last five years amounting to Rs.38,000 crore.


"Out of the total proposals, Assam got the major investment proposals amounting to Rs.21,152 crore followed by Meghalaya and Nagaland," he said adding that this excludes proposals by the central sector projects like the gas cracker project in Assam, alone worth about Rs.900 crore.


"All the states in the region have resolved that the economic development of the northeast region will mainly depend on MSME sector due to problems like availability of lands," said Bordoloi.


The forum also appealed to the central government for efforts to set up dedicated MSME bank branches in all district headquarters of the region.


"This is being urged to the centre as it will help the first generation entrepreneurs of the region for whom, now, it is difficult to get a bank loan to start any entrepreneurial venture," he said.

 
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The Incentives given are bogus
Navin Gulgulia | Fri Jun 22 14:03:34 2012
The Tax holidays given to the SME sector in the north east are actually a eye wash. The SME's have to ultimately pass on the benefit to the customer because the large players bend the rules in their favour and keep their prices lower. The incentives in fact is more cumbersome on the SME as the owners of the small units round the clock have to sit with pen and paper complying with hundreds of laws and norms set by the central and state governments for a unit to run. In fact above that the monetary burden of huge sums of bribe to be paid for complying with norms is setting the SME sector back in the north east. There has been a talk of single window clearance for all SME's since last 10 years and still nothing has come up in the North East. The Governments are favorable to the large entrepreneurs who kind directly deal with the top brass but the small units have to polish the boots of the local chapter as the Ministers, Secretaries, etc are in approachable for them. So I firmly believe that their should be no incentives for the North East and then i guess the growth will be 10 folds for the SME's as their will be less norms to comply and less pockets to fill.


 
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