MSME Council Proposes Plan to Revive Struggling Small Industrial Units in Odisha

The MSME Export Promotion Council (MSME EPC) has recommended a five-point strategy to aid nearly 25% of the 5.36 lakh micro, small, and medium enterprises (MSMEs) in Odisha that are facing financial struggles. The study, titled ‘Revival & Development of MSMEs in Odisha,’ aims to revitalize these enterprises, which play a crucial role in the state’s economy.

According to DS Rawat, Chairman of MSME EPC, the strategy emphasizes the need for systemic reorientation to ensure the development of a diverse pool of MSMEs. Currently, Odisha has 5,35,910 MSMEs, with 59.48% located in rural areas and 40.52% in urban regions. These businesses have a combined investment of over Rs 25,655 crore, providing jobs to skilled, semi-skilled, and unskilled workers. However, around 25% of these enterprises are struggling for survival, necessitating urgent intervention.

The five-point strategy proposed by the council includes:

1. Customised Interventions for specific MSMEs, including schemes for new-age companies, manufacturing, services, formalisation through Udhyam registration, financing, and risk mitigation.
2. The creation of a single-window payment system, self-certification, delegation of powers to lower levels of authority, and the establishment of specialized start-up centers with facilities like product testing, fabrication, and assembly labs.
3. Introduction of innovation funding schemes, equity for start-ups, and equitable financing through NBFCs and banks, with support from fintech companies and direct lending from state-sponsored institutions.
4. The development of a platform that helps MSMEs connect with large buyers, public and private vendors, and experts, and provides shared services and access to raw materials.
5. The state government should monitor adherence to its purchase preference policy and create a mechanism to capture data on both the demand and supply of labour within MSMEs.

Rawat emphasized that entrepreneurs, particularly those in the micro and small categories, are often well-equipped to manage their businesses but require sector-specific training and interventions to thrive. He urged the state’s MSME department to implement targeted plans to train these entrepreneurs based on the unique needs of each sector.

Disclaimer: The information provided in this article is based on publicly available reports and statements. Readers are advised to verify details independently before making business or financial decisions.