While Odisha has excelled in several sectors, MSME being a very essential and deserving sector has somehow slipped attention of our Government. The risk taking, ever struggling and hard working small entrepreneurs of our State are lagging behind. The second generation entrepreneurs of our State are gradually getting extinct.It is mostly policy decision that can bring in a sweeping change in this sector. Investments if any shall be meager as compared to the revenue it can generate for the State. The call for making Odisha the friendliest MSME State in the country can be achieved.
The OSFC and IPICOL contributed to the promotion of industries in the State but due to various issues, mostly due to non availability of need based working capital, several units suffered loss in spite of their best efforts.
As a result OSFC and IPICOL dues could not be paid in time.The Government of Odisha realizing the same floated various OTS policies providing exit option out of which MFD OTS 07 policy approved by the Cabinet was the most successful. Vide this policy many industries revived and OSFC also recovered their pending dues from many of their assisted units.The assumption that the OSFC made large sacrifice in this OTS is notional since most dues were inflated because of multiple compounding of interest. Presently, the situation of our MSMEs in the State is alarming especially due to Covid-19 related pandemic. We also need to provide employment to our Migrant Workers for which we suggest the following:
State level funding agency
It is requested that State level funding agencies like OSFC and IPICOL may be revived to resume their funding activities. We need at least two such agencies for MSMEs in our State. In most other States, there are about two or three such agencies.
Exrention of MFD OTS 07 scheme by OSFC
The present OTS 2011 policy is extremely stringent and impractical. Hence it is requested that the MFD OTS 07 scheme approved by the Cabinet of Odisha be extended with a six month window so that such units who have not been able to apply for the same in time or with fund constraints may avail the opportunity to pay their dues under this policy and revive their units.
Implementation of MFD OTS O7 by IPICOL
The OTS scheme approved by the Cabinet was implemented by OSFC where as IPICOL though communicated this scheme to seventeen of their assisted companies and collected the ID (Initial deposit) of 10 percent from them, against this scheme, this scheme has not been implemented yet.The new scheme, OTS-2016, with its stringent clauses is unviable and extremely difficult for the units under reference to settle their dues under since most of these units are NPA and closed as on date. It is therefore requested that the IPICOL may kindly implement the MFD OTS 07 scheme for those units against which the ID has been collected.
Waiver of interest for Super Cyclone loan
The Super Cyclone loans sanctioned to many of OSFC/IPICOL assisted units after the devastating Super Cyclone in 1999 were actually adjusted against their outstanding dues and as a result these units actually did not receive the required disbursements whereas they had to carry the loan burden.
These loans with accrued multiple compound interest has grown to several folds with notional figures, impractical for about 500 such units in our State to service.
The Chief Minister was kind enough to write to the Union Finance Minister on July 26, 2006 to convert the loan extended by SIDBI to grant, which was unfortunately declined. As a result about 500 units in the State are suffering due to non-servicing of these loans.
It is therefore requested that the outstanding Super Cyclone loans be waived or at least the interest on the Super Cyclone loans be waived for revival of such units which can generate at least 50,000 additional employments for the migrant workers.
Conversion of Idco land from leasehold to freehold
Many units established on lease land provided by Idco and which has been already operated for about 20 years may be allowed conversion of such land to freehold on payment of conversion cost. Realising that the promoters of such units have already dedicated their entire career in development of their enterprise and that they have no terminal benefits, being senior citizens today, this conversion may kindly be allowed at a reasonable cost.
Release of MSMEs dues pending with Govt dept, PSUs
Many of our MSMEs are suffering severe financial crunch since they have not been able to realize their dues from many of our PSUs and Government Departments. They are unable to move court for recovery of their dues under MSME Act being incapacitate. Release of such dues shall bring life into many of our State MSMEs who have either become sick or suffering from incipient sickness.
Supply of steady, quality power
It is extremely important that our MSMEs are provided with steady power supply of standard quality which can only ensure required productivity and quality of the product besides ensuring minimum wastage. Unfortunately, frequent power cuts, low voltage, single phasing etc. have been constant problems in our State.
Resolving the issues will not only revive our State MSMEs, it will also ensure that our migrant workers are retained and employed in our State.
(The writer is working chairperson, EFCAI, ex-chairman, Orissa Assembly of Small and Medium Enterprises. Mob: 9437057659, efcai12@gmail.com)