Working chairperson, EFCAI, Captain Harendra N Mahapatra has urged CM Naveen Patnaik to intervene to boost the MSMEs of Odisha.
In a letter, he said that through policy decisions, the MSME sector of the State can be revived to enrich Odisha substantially. At the same time, the State shall earn revenue and many of its closed units can restart their operations, he said.
Due to unavoidable circumstances beyond the control of the promoters, many MSMEs suffered loss and closed down over the years. With multiple compounding of interest, the outstanding amounts have inflated to around 100 times in many cases which is not possible to be serviced. Unless such accounts are settled under OTS, the employees and the units shall suffer. Hence, he urged the CM to reopen MFD - OTS 07 Scheme and provide a window for about 6 months for those who have missed the opportunity to apply. This should be applicable for both OSFC and IPICOL, he said.
Mahapatra hailed the efforts of the State Government to write to the Union Finance Minister on 26.07.2006 to convert the loan extended by SIDBI to a grant. He said the Centre has unfortunately declined the request and as a result about 500 units in the State are suffering due to non-servicing of the loans, he said. He requested that the outstanding Super Cyclone loans be waived or at least the interest on the Super Cyclone loans be waived by the State for revival of the units which can generate about 25,000 additional employments immediately.
Those MSMEs which are set up on IDCO land and have already operated their units for 20 years or more may be allowed to convert their land to free hold at a concessional conversion rate, he said.
These promoters have dedicated their lives for these industries and have no pension or any other terminal benefits. They have also paid near market values for the plots. In consideration of their services to the State, the State may allow them to exit honorably, he urged.
Further, Mahapatra said many of the MSMEs are in financial crunch since they have not been able to realise their dues from many of the PSUs and Government departments. They are unable to move court for recovery of their dues under MSME Act. Release of such dues shall bring life into many of our State MSMEs which have either become sick or suffering from incipient sickness, he said.
The Government is initiating various measures for strengthening the MSMEs through implementation of various schemes, but the applicability of such schemes is mostly for well performing MSMEs. Realizing that such units constitute about 10% to 20% only, there is an immediate and substantial requirement for robust rehabilitation schemes for revival of potentially-viable NPA MSMEs, Mahapatra urged.