In the early 1980s, Odisha was lagging behind many other States in industrialisation. Having realised this, the then Chief Minister JB Patnaik declared to promote a thousand industries in a thousand days. The State was vibrating with industrial activities then. The OSFC (Orissa State Financial Corporation) was in its full form of sanctioning term loans to set up industries which even included hotels, transport and trawlers deployed in mostly Paradip for harvesting shrimps for exports. Processing plants were set up, trading houses, consultancy firms and support services were available for meeting the goal of the Government to set up 1,000 industries in 1,000 days. Entrepreneurs from all over the country, especially from West Bengal, rushed to Odisha, to avail several promotional incentives to set up industries.
The then Industries Secretary SB Mishra was practically at the helm of affairs, ensuring proper coordination and implementation of the State policy. The DICs (District Industry Centres) had IAS officers as General Managers in many districts. SlIIC (State level Inter-Institutional Committee) meetings, though with a few proposals, were being held every month not only for resolving banking-related issues but included any other issues required for proper functioning of the industries. Especially, OSFC, IPICOl (Industrial Promotion and Investment Corporation of Odisha ltd) and IDCO (Infrastructure Development Corporation of Odisha) were vibrating with activities. Hundreds of entrepreneurs from within and outside the State were flocking to these offices daily to solve their problems, and many of them from distant places were returning happily the same day after completing their jobs. Senior officials, especially the MDs, Chairmen, etc., were all powerful and their instructions were being carried out diligently and in a timely manner. SB Mishra, as the Industries Secretary, used to interact with the banks’ heads as and when required; and, especially, on Saturdays, a review was being taken. The CGM of SBI had to visit Mishra’s office and report compliance of sanctions of working capitals to various industries. Mishra’s one telephone call was enough for clearing any hurdle in any department of the Government or a bank. The entire Industries Department worked cohesively to ensure timely implementation of the industries.
Setting a few examples with firsthand experience, I was then an employee of Mobil Shipping Company, london, on vacation. Since I always had an urge to return to my hometown and create an enterprise, I casually visited the Baleswar DIC to inquire about setting up industries in Odisha. Having stayed abroad for many years, I was really scared about running from pillar to post to obtain various clearances required for setting up an industry. I Srinivas, IAS, was the Baleswar DIC GM. When I met him and expressed my views of setting up an industry in Baleswar, he was highly encouraging. He gave me a form to be filled up. I did as per his advice and submitted the form to him at around 12:30 pm. The same day around 3 pm, the bell rang in my house. When I opened the door, I found a peon carrying a PRC (Provisional Registration Certificate) from the DIC. For a moment, I was taken aback since it was contrary to my belief that people are casual here and one has to face delay at every stage. This boosted my morale and I decided to proceed ahead with the formalities to set my industry.
Today, the situation is very different. Most DICs are without proper staffs. The OSFC is neither closed nor functioning. The financing portfolio has been inoperative since 2002, but even after repayment of their loan, for issue of NDCs or any other documents, the entrepreneurs are harassed. The officiating MD is functioning from the State Secretariat, and to visit him one has to arrange a pass to enter the Secretariat which is itself a difficult job. There is no one else at the OSFC who could take an effective decision. The staffs are complaining that they have not received their salaries for the last four months.
The IPICOl, an SIDC, which was set up to fund larger projects, mostly medium and large-scale, was also immensely active during the 80s and 90s. This institution has also surrendered its NBFC licence for financing to the RBI. Now, the IPICOl is only engaged in promotional and Single Window Clearance activities.
There is no State-level institution in Odisha which can finance an MSME. The banks operate under the guidelines from the RBI and the Union Ministry of Finance. They generally do not respond to the recommendation of the State Government. As a result, many State MSMEs face financing issues like under-financing, delayed financing or piecemeal financing, which are the prime causes of sickness of MSMEs in Odisha.
Association viewpoints:
MSMEs are the link between the large-scale and the agricultural sectors. Various schemes to promote MSMEs are floated from time to time, but the spirit of manufacturing is diluted since most data of MSMEs are now clubbed with the service sector. This sector may also be important, but it is only the manufacturing and agricultural sectors which generate value addition for the nation. There is a need to revive and revamp Odisha’s SME sector for alleviation of poverty and for prosperity of the State.
The writer is working chairperson, EFCAI, ex-chairman, Odisha Assembly of Small and Medium Enterprises. Email:efcai12@gmail.com) (