Govt in favour of a separate MSME department

Bhubaneswar: Realising that only small industries could provide adequate employment, the state government on Thursday said it was seriously considering to set up a separate department to deal with micro, small and medium enterprises (MSME).

"A committee is set up to examine into different aspects associated with MSME sector. The committee will suggest the state government on requirement of a separate department for MSME," chief secretary B K Patnaik told reporters after attending a meeting on re-organising industry sector.

Stating that there were above one lakh micro, small and medium industries in the state, Industries secretary T Ramachandru said "the committee will visit different states like Tamil Nadu, West Bengal and Uttar Pradesh where separate MSME departments are functioning."

Though MSME was under the Industries department, a separate and dedicated department for the sector could be helpful, Ramachandru felt.

Of the above one lakh units in the MSME sector, about 50,000 were working well while others faced several setbacks.

10,000 units had already been declared defunct of which the government had bailed out about 2,000 of them with financial assistance and waivers.