SME Times News Bureau | 30 Dec, 2019
Two leading exporters’ association of the country have
proposed to set up "plug-n-play" facility on the lines of Kenya and
Ethiopia to start instant production without being stuck in getting regulatory
clearances.
"Small countries like Ethiopia and Kenya have created world class infrastructure
of plug-n-play where even the businessmen from Bangladesh are going to produce
garments. We need to look into this," said Ajay Sahai, Director General
& CEO at the Federation of Indian Exports Organisation (FIEO).
In the IT sector, plug-n-play offices refer to facilities where Internet, power
supply and conference areas are provided. The exporters and small manufacturers
want government to provide ready infrastructure for starting production.
They have made a strong case for it in their discussion with Finance Ministry
officials and want a plan to be announced in the upcoming Union Budget for
2020-21.
"Start-ups or a new person entering into manufacturing cannot afford the
high land and building cost in the beginning. So, if plug-n-play infrastructure
is provided on a modest lease rent, they can come and start working," said
Animesh Saxena, President of the Federation of Indian Micro Small & Medium
Enterprises (FISME).
The plug-n-play infrastructure is set to minimise the risk for investors as in
case the business fails, the investors can move without any liability.
"We have suggested this for the MSME sector. It will be a good step if
government provides it," Saxena said.
Among other suggestions, the exporters' body has suggested to nominate a nodal
officer to help firms investing $10 million or more in manufacturing.
"Government may nominate nodal officer for every investor investing beyond
a threshold limit whose job should be to provide all clearances/approval to the
investor from the statutory agencies," the FIEO is learnt to have told
Finance Ministry officials.