Uttar Pradesh has the largest share of medium and small scale enterprise in India at 44 lakh units. Keeping this in mind, the Akhilesh Yadav government has decided to go overdrive to boost MSMEs in the state through new initiatives.
Making its first move, the department of Medium, Small and Micro Scale Industry has decided to replace the District Industries Center (DIC) with totally revamped new set up in all the districts.
Proposed to be named ‘District Industries and Enterprise Facilitation Center’ (DIEFC), it will limit its role of a regulator and, instead, don the cap of a facilitator.
UP’s MSME and Export Promotion Minister Nitin Agarwal is believed to have given directions to restructure the center in such a way that it invokes entrepreneurship and brings more medium and small-scale industries to UP.
“DICs in all 75 districts will soon be restructured and replaced with DIEFC,” MSME and export promotion department principal secretary Rajneesh Dubey said, adding, “The sector happens to be substantial given the fact that more than 90% products exported out of UP are manufactured in the small and medium scale industries. That is where their importance lies.”
Dubey said the department will soon issue a government order asking the DIEFCs in all districts to hold weekly meetings, ostensibly every Friday, to facilitate the entrepreneurs interested in setting up medium and small scale industries.
“Officials from departments like power, pollution control board and revenue will be asked to come together and redress the problems faced by the industries,” he said.
The idea is to change mindset of people about the department which has been known more as a regulator than a facilitator.
Uttar Pradesh is followed by West Bengal (36.64 lakh), Tamil Nadu (33.13 lakh) and Maharashtra (30.63 lakh).
UP also tops the chart in terms of employment. It has 92.36 lakh people employed in the small scale sector, while West Bengal has 85.78 lakh, Tamil Nadu 80.98 lakh and Andhra Pradesh 70.69 lakh.
The Samajwadi Party government’s move comes months after the Center came up with a ‘Scheme for Promotion of Innovation, Entrepreneurship and Agro Industry’.
The scheme, besides seeking to create new jobs, intends to promote entrepreneurship culture, induce economic development at the grass roots, facilitate innovative business solution and promote innovation to further strengthen the competitiveness of MSME sector.
According to latest statistics available with Union Ministry of Medium and Small Scale Industries, in 2013-14, there were around 4.9 crore units in the sector in the country. These units, estimated to have a fixed value of around Rs 13,637 crore, employed 1,114.29 lakh people. The sector contributed to nearly 38% of the gross domestic product.
Image Courtesy : News 18