MP Global Investor Summit to boost Micro Small and Medium Enterprises

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  • Creation of a new ministry for the MSME sector
  • Availability of INR 10 lacs to 1 crore in loans at low rates to boost entrepreneurship
  • Focus on cluster development for better resource utilisation
  • Licence registration deemed approved if not catered within specified time frame
  • Venture fund of INR 100 crore to boost entrepreneurship in MSME sector
  • Creation of 27 new industrial areas in the state

MP Global Investor Summit to boost Micro Small and Medium Enterprises (1)Indore, 8 Octorber 2014: The Madhya Pradesh Global Investors Summit kicked off today, with the national convention on the MSME sector. A mega event, over 3,500 delegates will attend the Summit. The event churned out unprecedented developments to facilitate the ease of doing business for the sector.

Chief Minister, Shivraj Singh Chouhan flagged off the convention, laying the ground work for the MSME sector. Urging MSME players to create products and services of quality he stated “MSMEs are bigger employers of local talent and critical to inclusive & balanced growth of any country. Therefore, we will facilitate the creation of a new ministry for the MSME sector” A highly vibrant and dynamic sector for the state economy, MSMEs play a crucial role in providing large employment opportunities, industrialization of backward/rural areas and help in sustainable development. The sector contributes 8% to the national GDP, creating over 100 million jobs across the country. The session provided a unique platform for policymakers, the industry and other critical stakeholders to come together to create new frontiers for the sector.

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The Government of Madhya Pradesh is taking conscious steps to transform the economy from an agrarian to an industrial one. In order to facilitate faster growth for the sector, the Chief Minister announced a host of initiatives. A new Mantralaya/Ministry for MSMEs, a venture capital fund of INR 100 crore, easier financing norms for new ventures are some of the steps taken to boost the sector. “Madhya Pradesh is simplifying laws and streamlining procedures for MSME. My government has radically minimised the registration process and abolished Inspector Raj.”

Industry Minister Yashodhara Raje Scindia reiterated the Chief Minister’s call to provide fillip to the MSME sector. “Dreams of the entrepreneurs are dreams of the government. In order to boost the sector loans at low rates will be provided to individuals aged between 18-40 years old. Also, the government is in the process of starting the investment corridor,” she said. Ms Scindia took the opportunity to acknowledge the substantial work by start-ups in the state that have helped ignite the fire of entrepreneurship among the young.

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“We do not believe that anything is impossible,” quoted the Chief Minister, inspiring the audience to believe in Madhya Pradesh’s potential to become a leader among states. He emphasised on the value of enterprise among the citizenry stating that through self-employment, agri, agri-based and cottage industries can flourish, which in turn can boost the manufacturing sector. For good manufacturing practises the permission will be required once in 5 years and to add new products the permission will be granted in 2-5 days. Progressive schemes like the Madhya Pradesh Yuva Swarojgar Yojana will guarantee a disbursal of anywhere between INR 10 lacs to 1 crore to upcoming entrepreneurs.

In terms of land resources too, the state has reserved 20% of the industrial land for the development of MSMEs. 544 types of small scale industries will be given online clearance of pollution and that will be valid for 5-15 years, based on the nature of the industry. In sync with the
developments, the incumbent annual renewal process is being abolished. The state government is also taking conscious steps to ensure e-governance for easy facilitation of business. Like, for issuing license and permission by the Food and Drug Administration, an online system will be launched by January 2015 and till then the permission will be given on mail.

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Union Minister for MSMEs, Kalraj Mishra lauded the Shivraj Singh Chouhan government’s initiative to make Madhya Pradesh the heartland of business investment. He laid focus on the Central government’s decision to develop incubation centres to train upcoming entrepreneurs.
“The Government of India wants to establish at least 30-40 incubation centres in Madhya Pradesh to help young entrepreneurs set up their businesses,” he said. Mr Mishra also decided to establish a new tool rooms to the tune of INR 150 crore in Madhya Pradesh.

Lok Sabha Speaker, Sumitra Mahajan, went all out to acknowledge Shivraj Singh Chouhan’s efforts to reform industrial and business policies in the state. She stated, “I am impressed with the land bank information prepared by the government showing the already available land in different districts of the state, as well as showing the power and water availability – This is unique”. She personally appealed all the entrepreneurs in the state to produce the quality product so that the global market may recognise them.

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In what culminated to be a perfect closure to the session, the Chief Minister reiterated that progressive initiatives would be taken by the government to channelize the vast pool of resources towards the development of the MSME sector in Madhya Pradesh. Single window clearances, entrepreneurship incubation centres, investor-friendly policies and patronage by the state would go a long way in ensuring that Madhya Pradesh becomes a powerhouse for MSMEs.

 

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