According to the fourth industrial survey of industries, many small-scale units are on the verge of closing because of lack of funding and adequate infrastructure, said Mr R Karikal Valaven, Commissioner of Industries, Andhra Pradesh.
He said that there was a need to identify the sickness of small-scale industries at an early stage to take necessary remedial measures, delivering the inaugural address at a CII Andhra Pradesh organised seminar on the Finance Availability for Micro, Small, Medium Enterprises here today.
He envisaged the creation of five lakhs jobs and attracting Rs 15,000 core investment into the State every year as objectives of the Andhra Pradesh Industrial Investment Promotion policy 2010-2015.
These objectives can be achieved by increasingly focusing on the manufacturing sector. He was also of the view that there is need to increase the share of manufacturing sector contribution in the State GSDP from 11 per cent to 17 per cent by 2015. SMEs have significant role in increasing the manufacturing sector contribution.
Mr Valaven said the State was encouraging the exclusive SMEs clusters and private industrial estates for setting up of more industries.
Mr Ramesh Datla , Chairman CII National MSME Council & Managing Director Elico Ltd, was of the view that building competitiveness of the MSMEs is necessary to face global competition. In this regard, partnership between MSMEs in Europe, the US and India are necessary capturing business opportunities at global level.
Mr S. Durairajan, Deputy General Manager, Reserve Bank of India, said some of the bank's initiatives include constitution of a standing committee to increase the flow of funding to MSMEs and giving freedom to banks for rehabilitating sick MSMEs. The present monitoring of financing to MSMEs has also been changed from half yearly to quarterly for ensuring greater flow of finance for MSME sector, he said.