MADHYA PRADESH Laghu Udyog Sangh (MPLUS) – the umbrella body for small-scale industries (SSI) sector in Madhya Pradesh — has moved a proposal to the State Government towards development of ancillary units, by suggesting an amendment in land rules.
The MPLUS has decided to put its demand for discussion during the Investors’ Meet at Khajuraho, aiming at a blueprint that would enhance productivity and competitiveness of SSIs.
“We have proposed that the surplus land available with industrial units may be utilised for setting up ancillary units meant either for the particular industry or for any other type of industry,” MPLUS president Dr R S Goswami told Hindustan Times.
Explaining the proposal, he said it has often been observed that SSIs have to keep surplus inventory to avoid shortage of components.
“If we can start an ancillary to meet the requirement of components needed for a particular industry, transportation cost to bring the component from other district or state could be saved and thereby increase competitiveness,” Goswami said.
MPLUS has identified food processing, chemicals, pharmaceuticals, non-edible oils, heavy/light engineering and electronics as the sectors with more than 43,000 industrial units.
If the proposal gets implemented, the government would be able to bring growth in industrialisation without allotting additional land or setting up new industrial area, he added.
“The only requirement would be to make amendment in the land allotment rule so that any land owner either use it himself for an ancillary unit or give it to another person. But the purpose of it should be only manufacturing and not any other kind of trading,” he added.
The Association has also claimed that if the proposal is mooted, the State Government is likely to have a financial gain of about Rs 4 crore. The expected growth in production after two years of implementation would be to the tune of Rs 800 crore.
According to banking figures, credit flow in the SSI sector in Y-2003 was Rs 1425 crore, which has gone up to Rs 2222 crore in Y-2006. This is a clear indication of growth in SSI production. MPLUS has planned to leverage the opportunity to its advantage.