Micro, small and medium enterprises (MSMEs) in Dakshina Kannada should take the opportunity to start industries because they need not meet the strict environment guidelines set for large industries, P.P. Upadhya, Managing Director, Mangalore Refinery and Petrochemical Limited (MRPL), Mangalore, has said.
He was speaking after inaugurating a national vendor development programme, seminar and industrial exhibition at Karnataka Polytechnic here on Monday. The event was organised by the Union Ministry of Micro, Small and Medium Enterprises. Other than opportunity, large industry alone is not sufficient (for the economy). “For the MSMEs, there are no hurdles, they should take the opportunity”, he said.
Mr. Upadhya said there is scope for the MSMEs in petroleum with MRPL providing opportunities in products such as polypropylene and coke that MSMEs can use. The company sources up to 20 per cent of its requirements from the MSMEs. It gets 350 items supplied only by the MSMEs. It imports crude oil and manufactures finished products and 45 to 50 per cent of the finished products are for the export market. It extends all benefits to MSMEs as per Government of India guidelines. This includes exemption of earnest money deposits (EMD) and preferential rates in the tender process when compared to large industry.
Mr. Upadhya said there was a need to encourage diploma-holders and provide them with choice in their field of study. “Diploma-holders are required and the response is not that encouraging”, he said. Other than MRPL, the issue concerns other industries and MSMEs, which are unable to get diploma-holders.
In MRPL, 50 to 60 per cent of the employees are diploma-holders. Priority is given only to higher education and more opportunity must be given to students to choose from while studying diplomas.
“Engineers can’t do diploma-holders’ work but diploma-holders can do an engineer’s work — that is possible”, he said.
Santhosh D’Souza, Joint Secretary-II, Karnataka Small Scale Industries Association (KASSIA), Bangalore, said that while there is a facilitation mechanism for MSMEs, its decision is not binding so large industries need not implement what it advises. Unless its decision is made binding, it is of no use to MSMEs, he said.
The government gives large areas of land to businesses that come through events such as the Global Investors Meet (GIM) but the MSMEs find it difficult to get lands even in cents for setting up industry, he said.
S.M. Jamkhandi, Director, Government of India, MSME-DI, Bangalore, said the Government of India was trying to bring a law for non payment or delayed payment to be treated as a criminal offence.