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MP chases investments with new ministry, policies

Shivraj Singh Chouhan announced the setting up of a ministry for MSME, the latest in a slew of policy initiatives that also include cutting byzantine approval and renewal procedures to promote entrepreneurship.

indore Updated: Oct 08, 2014 21:14 IST
Manoj Ahuja
Manoj Ahuja
Hindustan Times
Madhya Pradesh,Shivraj Singh Chouhan,Global Investors Summit

Chief minister Shivraj Singh Chouhan announced on Wednesday the setting up of a separate ministry for micro, small and medium enterprises (MSME), the latest in a slew of policy initiatives that also include cutting byzantine approval and renewal procedures as well as easier loans to promote entrepreneurship among the youth.

Madhya Pradesh is the country’s fastest growing state with some of its best infrastructure but private investment has not kept pace. The government is hoping to change that by improving the state’s investment climate.

Addressing the inaugural session on the fourth Global Investors Summit, Chouhan said as a ratio of employment generation-to-investment the significance of the MSME sector was greater than that of large industries.

Chouhan announced several measures to improve the ease of doing business in the state. He said all approvals and licenses will be issued within a fixed timeframe and action will be taken against officials responsible for delays.

The government will also make the process of applying for approvals and licenses online in all the major departments such as pollution control. Also, industry will not have to apply for renewal of licenses or permissions every year but only once every five years to 15 years depending on the industry.

"We want to free the industry from the inspector raj," he said.

In a bid to promote entrepreneurship, the chief minister said the government will give bank guarantees to make it easier for the youth to avail loans ranging from Rs 10 lakh to Rs 1 crore for setting up an enterprise. He also announced setting up of Rs 100 crore venture fund to provide equity capital for start-ups with innovative ideas.

The chief minister said that a minimum 20% land will be reserved for MSME sector in the 27 new industrial hubs being developed in the state. The ancillary industries which supply more than 75% of its output to the mother industry will get the same benefits as any large industry.

He exhorted industrialists to make quality products so that people develop blind trust in the "Made in Madhya Pradesh" brand.

Addressing the meet, Union minister for MSMEs, Kalraj Mishra said that small and medium industries are getting attracted to Madhya Pradesh due to an improvement in infrastructure and the state government's industry friendly policies.

"MP's agricultural growth is now highest in the country, and I am sure that one day the state will also lead in the industrial growth," he said.

The minister said the government will set up 500 district-level incubation centres across the country in which people will come and learn how to start new enterprises. The government will set up more than 30 such incubation centres in MP.

Lok Sabha Speaker and Member of Parliament from Indore Sumitra Mahajan also appreciated the efforts taken by state government in industrial development of the state.

State industry minister Yashodhara Raje Scindia addressed the gathering as well. Several foreign dignitaries, including ambassadors, were present on the occasion.

GIS: Day One highlights
Separate ministry for MSME in state
Rs 100 crore venture fund for start-ups
Approvals, permissions to be granted in fixed timeframe
Action against officials responsible for delays
Govt to help entrepreneurs avail loan of Rs 10 lakhs to Rs 1 crore
30 incubation centres in MP for teaching entrepreneurship skills.

First Published: Oct 08, 2014 14:46 IST