Vyavasaya Nadham April 2013 - KSSIA Kottayam

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Total Investment Rs 7000 Crores
Total employment 4 lakhs
(Working group report on MSME AND
TRADITIONAL INDUSTRIES published by State
Planing Board in July2012).
Going forward the two biggest challenges to the
industry’s growth will be shortage of skilled people
and good governance. There is no room for unskilled
labour now.
The business model in manufacturing sector has
undergone a change and become technology oriented.
Technology is very important to an entrepreneur.
Entrepreneurship and the technical development
are related.
Labour oriented industries of traditional type and
garment based industries, textile parks like SITP.
could employee a large number of semi skilled
labourers. Both together would give shape to a Kerala
Model for the manufacturing sector and this could
ease the problem of unemployment.
NEW PROGRAMMES INITIATED
BY THE STATE GOVERNMENT
1. Self employment programme for
un-employed youth
This scheme intends to give assistance
to young educated entrepreneurs preferably
technically qualified and skilled youth
to set up MS enterprises both manufacturing
and service industries for having total
project cost up to Rs..10 lakhs BY AVAILING
LOANS FROM National/ Scheduled/ Co
operative banks including rural banks.
Margin money of 20% of the project cost
limited to a maximum of Rs 1 lakh per
person.
2. To give special incentive to the fruits
and vegetable processing units in the
State.Subsidy of 5%OFTHE ANNUAL TURNOVER
will be given to manufacturing units.
engaged in production of Pickles, Jam ,
juice, squash, jelly, and other fruits
and vegetable products.(eco friendly and
green industries)
3.Turn over subsidy to agro based
industries.(launched 2011-2012.
4.Scheme for power tariff subsidy. For MS units
for a period of three years
from commencement of commercial production.
STATE BUDGET FOR 2013-14
Money has been set apart for :
1.setting up incubation centres in engineering
and professional colleges
2.placement cells
3. entrepreneurial development programmes in
association with educational institutions.
4.Start up subsidy for innovative projects
5.Upgradation of IT parks.
Suggestions.
Considering the great demand for skilled
labourers, the Government will have to take
active steps to produce more technically skilled
youth.
Considering the high demand of power, the
State will have to actively support alternate
power generation projects.
Government will have to take proper steps in
industrial waste management including
electronic waste.
The Government have to seriously consider
improving the availability of industrial land at
reasonable cost. Multi-storied industrial
buildings with all basic infrastructure facility
should be set up for consuming less space and
reducing pollution at least two in every district.
Mini industrial estates sould be developed in
all panchayats.
Marketing incentives should be given to attract
investors for a period of 5 years at least.
The uninterrupted power supply has to be
ensured by the Government for all enterprises.
The delay in power connection should be
minimised.
On the side of finance, it has to be ensured that
entrepreneurs get seed working capital without
any difficulty.
The bank interest rate has to be reduced. For
this purpose proper action should be initiated
with banking institutions to make available fund
at reasonable rate of 5% per annum. This could
also help in reducing NPA to the minimum.
The Government have to consider seriously, the
issue of high loading-unloading charges.
The Government should take initiative to
arrange entrepreneurial development
programme to entrepreneurs at a nominal cost.
The Government may arrange awareness
programmes regarding schemes of the
Government like Credit Guaranteed Fund
Scheme and on GST.
12 THE HOME JOURNAL OF KERALA STATE SMALL INDUSTRIES ASSOCIATION, KOTTAYAM