Mangalore, Jan 5: Although Micro Small and Medium Enterprises (MSMEs) are the lifeline of Indian economy, only 5% of MSMEs have obtained registration from the government which is a cause of concern, said M Prabhu, Additional Director (MSME), Department of Industries and Commerce, Government of Karnataka.
He was delivering the keynote address at the inaugural ceremony of the National Vendor Development Programme Seminar cum Industrial Exhibition, organized by the Ministry of MSME, Government of India, at Karnataka Government Polytechnic, Mangalore, on Saturday.
About 40% of the manufacturing output and 35% of India's exports come from MSMEs. They contribute to investment, the GDP of the country and generate employment. However, only 5% of the MSMEs get themselves registered with the government. Serious thought needs to be given as to why they do not come forward and register themselves and if there has been a lacuna in communication in this regard, Mr. Prakash said.
Another problem that the MSMEs face is the delay in receipt of payments. The government has set up a facilitation committee which accepts proposals from such small companies if there are complaints of delay in payments after holding a court like sitting and hearing out the supplier as well as the taker. The MSMEs must make use of such facilities, he said.
P P Upadhya, Managing Director, MRPL, Mangalore, said in his inaugural address that unlike large industries, small scale industries do not face hurdles like environment clearances besides several other major hurdles. Mangalore being an environment sensitive area, it comes about as a plus for small industries which they should encash upon, he opined. Stating that the MSEZ has already acquired 1,800 acres of land, Mr. Upadhya said that there is land available for small industries to be set up in Mangalore.
Mohammed Ameen, President, KCCI, Mangalore, Santhosh D'Souza, Joint Secretary, KASSIA, Bangalore, S M Jamkhandi, Director, Government of India MSME DI, Bangalore, S G Hegde, Joint Director, DIC, Mangalore, were present among others.
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