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Collaborate PSUs, SMEs for better prospects, says MSME Director

Mangalore: Jan 6, 2013 DHNS

A collaborative scheme of Public Service Units (PSUs) and Small and Medium Enterprises (SMEs) will make both sectors competitive, said Micro Small and Medium Enterprises Director S M Jamkhandi in Mangalore on Sunday. He was delivering his presidential address in the valedictory of National Vendor Development Programme - Seminar Cum Industrial Exhibition organised by MSME at Karnataka Polytechnic campus.

In order to strengthen the Small and Medium Enterprises, a plan has been drawn so as to enable the collaboration of Public Service Units and SMEs. A list of services of PSUs which could be outsourced to SMEs is being drawn in this regard and designs are invited by the interested SMEs, he said.

Delayed payment or non payment by the non-SMEs and the lack of new schemes or policies to address the requisitions of young entrepreneurs are the two main problems which are often unaddressed in this sector.


He said that due to delayed payment and non payment by non-SMEs, many SMEs are forced to close down and the issue should be addressed immediately. He meanwhile assured that he will table the issue in the coming meetings with the Government and will make a request to implement tough laws towards non-SME defaulties. He felt that industry associations have to be aggressive regarding their demands.

Stating that NVDP is a component in the market side, he said one should be particular about the consequences of National Vendor Development Programme and there is a need to establish the NVDPs as a continuous process and he opined that through the regular organisation of NVDPs, the SMEs will get a stronger voice.

District Industries Centre Joint Director S G Hegde said that in Karnataka Small Scale Industries need protection and nourishment. He said that DIC being a development department, will address the problems of SME entrepreneurs and the aspirations of small scale industrialists will be forwarded by DIC recommend to the State level single window system.

He told that Reserve Bank of India has given directions to all banks to sanction the loan up to Rs 10 lakh without any security or surety under CGTMS scheme, towards the establishment of small industries.

Speaking on the occasion, Udupi Chamber of Commerce President Prasadraj Kanchan said that though Government is keen on insisting the industries to control their pollution levels, the execution is not possible by the small scale industries due to the lack of the facilities since there are no processing units in the district to process the industrial affluents.

He opined that necessary laws should be developed by the ministry concerned for the upliftment of SMEs. Though SME contribution towards Indian economy is 40%, the people who are working in small scale industries are neglected. It is true that the plastic ban addresses environmental concerns.

But due to a sudden close down, without a prior notice, many families which were dependent on the plastic industries are in distress. The Government should have provided the plastic industries with an alternate scheme or should have given time to the industries at least, by serving a prior notice, he said.

Karnad Small Scale Industries Association President N J Shetty said that though 60% of the employment of industrial sector is generated by SMEs, the Government has failed to support them. Single window sytem has no authority and also there are problems faced by the entrepreneurs regarding the infrastructure.

He urged the Government for the decentralisation of power in the sector and to establish the MSME  specialised bank branches which are exclusively meant for the support of Micro Medium and Small Scale Enterprises.

Kanara Small Scale Industry Association President M J Shetty, MSME Deputy Director K Socretes, Mangalore DSIA President K Jayaraj Pai, KASSIA, Bangalore Joint Secreatary Santhosh D’Souza, Karnataka Government Polytechnic, Mangalore Principal Karunakar Rai were present.

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