Investment on land a burden for MSMEs: cii tg

Hyderabad: Confederation of Indian Industry Telangana in collaboration with knowledge partner, Indian School of Business Hyderabad, released a report on MSMEs Roadmap 2047. C Shekar Reddy, Chairman, CII Telangana referring to the recommendations published in the report said that among many of the hurdles faced by MSMEs in the State the major ones are funding, land, government permissions, and taxation.

Suggesting reforms, Reddy told Bizz Buzz that burden on MSMEs in regard to investing on infrastructure should be brought down by the State government by providing it at a nominal price. “Earlier days, lands at industrial parks were given on plug-and-play basis. A shed to set up the facility, power connection, and water was provided on rental basis or payments were facilitated in installments. Those days, there were many incentives but ‘License Raj’ was applicable which has now faded away,” he pointed out.

Recommending plug-and-play system, Reddy said, “Each MSME may require 500-1,000 sq ft of space and they need not invest on land if plug-and-play model is implemented at different clusters.

GST and other interest on investment of capital on land and building, adds on to the product cost which makes it uneconomical. We are not able to compete with the global players as importing is cheaper while Indian products has turned out to be costly.”

In addition to simplification of all processes, Reddy recommends leverage from the State government, in the form of additional funding support for MSMEs facing delays in receiving payments and fear of ending up bankrupt.

Reddy informed that he has also requested the Telangana Deputy CM Mallu Bhatti Vikramarka to commit guarantees, on the lines of its poll promises, to the MSME and affordable housing sector, after collecting inputs from various industry associations. If the government adheres to its commitment, employment generation and GDP growth will be attainable, he added.

Commenting on TS-iPass, Reddy is of the opinion that instant online permission whether for TS-iPass or TS-bPass should be made mandatory along with upgrading the platform. He went on to say, “We boast of Hyderabad being a technology hub. Then why not upgrade the platforms software. The platform should be linked to all the concerned government departments. For receiving NOC the papers should be uploaded online, in case of discrepancies the department should raise the matter online. After all the documents are cleared, instant permission should be given to MSMEs, industries.”