Build private MSME parks under PPP mode, FSME to AP Govt

Visakhapatnam/Vijayawada: Federation of Small & Medium Enterprises (FSME) has urged the Andhra Pradesh Government to allot APIIC lands under PPP basis to establish private Micro Small and Medium Enterprises (MSME) parks.

Giving suggestions on behalf of the stakeholders in the MSME sector for incorporation in the industrial policy to encourage the MSME sector, FSME president APK Reddy said APIIC is in possession of over 40,000 acres. Allotment of part of it for MSME parks will give a big boost to encouraging local entrepreneurs generating thousands of jobs mainly after the sector faced heavy damages due to the long spell of the pandemic.

He told Bizz Buzz on Tuesday that FSME-India heartily welcomes the move to make the industrial policy more investor-friendly under the leadership of Chief Minister YS Jagan Mohan Reddy for the development of the MSME sector for AP.

He also said the government should take necessary action to provide one Industrial Promotion Officer for each mandal and to develop MSME parks with a minimum extent of 50 acres each in all the mandals to ensure balanced development across the State. He said the existence of MSME parks developed by the government and private parks will help function in a competitive environment.

The MSME units in the park will utilise the local resources for the industrial development as industrial promotion should be part of village secretariats.

Reddy said the Industries Department and District Industries Centers are unable to reach the targets due to lack of adequate staff. He stated the Government of India under Public Procurement Policy for micro, small enterprises (MSEs) order 2012 under Section 11 of MSMED Act, 2006 envisaged for 25 per cent of the procurement by the government departments/PSUs and government-aided organisations from the local MSEs.

The State Government has also issued the GO in this connection. In practice, this is controversial and not being implemented strictly, he pointed out and suggested evolving a procedure/policy for strict implementation of 25 per cent purchase preference from the MSEs exclusively.

Reddy said Andhra Pradesh Government should enact a Procurement Act mandating payment due within three months after receipt of the goods or products from MSMEs. Appropriate penalties should be incorporated in the Act if payments are delayed. Further, all the large industries and government departments should procure 50 per cent of their requirements from MSMEs.

He said in this legislation, a verdict by the Commissioner of Industries should be made final and binding if there is any dispute between companies and its MSME vendors. He said the Procurement Act mandating 50 per cent procurement from MSMEs. It should mandate prompt payments to vendors and appropriate penalties in the event of delays.

Reddy said the APIIC is the sole agency for development of Industrial parks/estates in the State. Unless the infrastructure is developed and developed plots are allotted in time, the entrepreneurs cannot start their projects. The MSMEs are completely dependent on the IPs of APIIC. More than 80 per cent of MSMEs in the State are set up in IP of APIIC only. Such a critical infrastructure cannot be ignored, he opined.