MSMEs Seek AP’s Support To Sustain, Survive

Vijayawada: Micro, small and medium enterprises (MSMEs) have urged the state government to help them out as they are facing several hurdles in their efforts to sustain themselves in Andhra Pradesh.

The state has nearly 20 lakh MSMEs. Out of them, a majority are unable to perform well for “want of sufficient support” from the state government.

They sought a revamp of the state Industrial Infrastructure Corporation (APIIC), as it does not have 'own' staff members at higher levels. “Those available are outsourced hands, and some middle rank officers like tahsildars are holding the position of zonal managers.”

Those who are working allegedly lack accountability for their acts of omission and commission, which, in turn , results in a lack of transparency in allotment of land.

MSMEs have proposed deputing the excess young staff members from the village and ward secretariats and those from the panchayat raj to the APIIC as they “are having requisite technical skills.”

It is noted that the MSMEs are having arrears of ₹3,400 crore in relation to incentives like 25 paise interest rate on loans, power subsidy and tax concessions from both the central and state governments. They propose that a quantum of arrears be taken for book adjustment and urge the central government to extend 75 per cent of arrears of the incentives as a grant.

They also proposed that the state government sanction 20 per cent of the arrears as a matching grant so that the MSMEs would get financial support to run their units.

District industries centres, it is noted, are also facing a staff crunch even at the higher level of general managers with no proper infrastructure support like computers, vehicles and other amenities.

MSMEs want the industries department to be strengthened. Though the state government has constituted the AP MSME Corporation, they want a senior officer in the rank of a secretary to be appointed on a regular basis to monitor the day-to-day functioning of these units.

It is explained that MSMEs in the state mainly deal in areas like automobile, engineering, food processing, rice mills and others.

Though the AP government is promoting major industries in a big way by adopting the procedures like Ease of Doing Business and Speed of Doing Business and has even set up a single window system to expedite issual of several clearances to set up units, MSMEs have been excluded from such favours.

MSMEs plead that they too be given similar support to contribute their share in the state’s industrial production and employment generation.