MSMEs will no more have to tackle the shortage of land, for the government is likely to very soon come up with Land Banks for small and medium industries in every state, for the affordable availability of land. An action plan is being prepared in this regard by the Ministry of Micro, Small and Medium Enterprises (MSMEs), which will be sent to the Cabinet, Ministry sources said.

Where did the proposal come from?

According to the Ministry sources, Prabhat Kumar Committee had recommended the formation of Land Bank for MSME Sector. The committee, headed by former Governor Prabhat Kumar, was given the responsibility of preparing the National Policy for the MSME Sector. In a draft, the committee had said that the small and medium industries are either unable to acquire land or the high prices compel them to set up in unauthorised areas, where they do not find adequate facilities. To tackle this, land banks will be created for the sector in every state.

Approval from Board

This recommendation of Prabhat Kumar Committee was brought up in the National Board Meeting for MSMEs, held under the chairmanship of Union MSME Minister Kalraj Mishra. The proposal then received approval.

According to Ministry sources, after the board’s approval, the proposal is now being considered, and soon a policy may be drafted and sent to the cabinet. After approval of the Cabinet, this policy will be appealed to be implemented in the states. According to the Ministry officials, some states are already passing positive vibes towards its implementations.

What will be the advantages?

If the government is successful in the application of this policy, on lines of Special Economic Zone, some areas can be marked separate in cities where only the micro, small and medium industries can be allotted land. Apart from this, lands will also be reserved for MSME sector in every industrial area. With this, small businesses will get land on easy and affordable prices, while the government will not have to tackle with factories engaged in unauthorized areas.