Govt’s focus on large industries & issues faced by SMEs not being addressed: Industry body
Alleging that small industries in the state are feeling neglected by the state government, a top industry body Thursday warned that it could even decide to boycott the upcoming Vibrant Gujarat Summit 2019 if issues concerning Small and Medium Enterprises (SMEs) are not addressed.
The Gujarat unit of Federation of Industries and Associations (FIA), which represents industries in the state, said that in spite of several representations, several issues faced by small and medium enterprises remain unresolved.
“The state government is keen to attract large industries, but we feel that SMEs are being neglected. The entrepreneurs are hassled since issues are not being addressed. Our demand is that the state government and its agencies should pay as much attention towards SMEs as they do towards the large industries,” Prabodh Patel, president of FIA in Gujarat, told DNA. He said that when local industries have always supported the Summit, they also expect the government to reciprocate.
Citing an example, FIA said that it takes almost three to four years to start an industry, especially if it involves securing environmental clear-ance. “The process of securing environmental clearance alone takes 1.5 to 2 years, which needs to be brought down. Processes related to acquiring land, securing plan approval, getting water and power connections, also need to be speeded up,” he said.
An FIA release, issued by Prabodh Patel, its honorary secretary GK Patel, and north zone’s vice president Ajit Shah, said that India has taken a big leap in World Bank’s Ease of Doing Business rankings, but condition of SMEs in Gujarat is dire.
“Many of the four lakh small units, which form the foundation of Gujarat’s development, are critical. We have no problem with foreign industries coming to the state, but local industries should not be neglected,” it said. FIA cited the example of land transfer policy of Gujarat Industrial Development Corporation (GIDC), which it said has not been revised in spite of assurances by chief minister Vijay Rupani himself. The industry body wrote to the chief minister, who also hands the industry portfolio, and sought immediate action from him.
“The result of our several representations is zero. This is affecting growth of existing industries, and immediate remedial measures need to be taken,” FIA stated.
GIDC VC& MD D Thara, however, said that some of the issues raised by FIA a few days ago have already been addressed.
“We are committed to the interest of MSMEs, and will resolve any remaining issues they are facing,” she said.
Hetal Mehta, president of The Southern Gujarat Chamber of Commerce & Industry, also said that SMEs were not getting the necessary attention. “SMEs are not in good shape. They are working at 40-50% capacity utilisation. Security bank finance is also a huge challenge, especially after a string of corporate defaults,” Mehta said.
FIA said that it has convened a meeting of office bearers of member industry associations in Ahmedabad on December 16 to discuss various issues, and to decide future course of action.
“We will decide whether to protest in the Gandhian way, or through aggressive means by boycotting Vibrant Gujarat Summit, or calling for bandh during the Summit,” it said. The ninth edition of the Vibrant Gujarat Summit is slated to be held at Mahatma Mandir in Gandhinagar from January 18 to 20. It is a showcase investment event, and has attendance of top corporate and political leaders from several countries.
Incidentally, this is not the first time that the industry has voiced criticism of the government’s policies ahead of the Summit. Just before the last edition of the Summit, real estate developers had announced its boycott, alleging harassment by AUDA. However, the crisis was averted, as their issues were sorted out.
IN THE PIPELINE
FIA said that it has convened a meeting of office bearers of member industry associations in Ahmedabad on December 16 to discuss various issues, and to decide future course of action.
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