Home ECONOMY Set up separate Corp within MSME dept : UCCI

Set up separate Corp within MSME dept : UCCI


Reported by Sandeep Pattnaik

Bhubaneswar, Jan 14:

The Utkal Chamber of Commerce and Industry (UCCI) Ltd has urged the state government to create a separate corporation under the MSME department  for the growth of micro, small and medium enterprises, among a slew of recommendations on the occasion of its golden jubilee celebration here on Tuesday.ucci

“As IDCO is mainly concentrating on procurement of land for mega and large industries and undertaking contract works for them, hence a separate entity under the MSME department need to be created for the growth of infrastructure in this sector,” President UCCI Ramesh Mohapatra urged Chief Minister Naveen Patnaik, who inaugurated the golden jubilee celebration here on Tuesday evening.

The industry body has recommended rationalization of VAT and giving input credit particularly to down-stream industries pertaining to Aluminium and Steel sector for promoting these industries in the state.

The chamber also urged the Chief Minister Naveen Patnaik to intervene in the matter of applicability of the OTS policy 2009 as announced by IPICOL then to settle the debt of 15 entities, who have already deposited down payment under the scheme. IPICOL is about to introduce new OTS policy replacing the old policy, which might deprive these entities to settle their outstanding dues under the scheme.

Mohapatra was also in favour of drafting of a new Industrial Policy Resolution –IPR 2014 as the present IPR is 7 years old. He suggested to the CM the IPR 2007 be modified to suit the state’s budget and policies.

Ramesh Mohapatra
Ramesh Mohapatra

The chamber also wanted the CM to direct DISCOMs to procure materials from MSMEs in the state as part of the Odisha MSME policy, 2009 by deleting VAT structure and price preference. The higher rate of VAT in the state forces the DISCOMS to procure their requirement from outside parties by paying a mere @2% CST, leaving the MSMEs high and dry.

“This is because the VAT money ultimately goes to the government of Odisha which gives 50% of the total amount to DISCOMs under the CAPEX programme,” President of UCCI Ramesh Mohapatra said.