PARLIAMENTARY STANDING COMMITTE MEETING WITH INDUSTRY ASSOCIATIONS

Shri V.Hanumantha Rao, Hon'ble Member of Parliament & Chairman, Parliamentary Standing Committee on Industry visited MSME-Development Institute, Hyderabad on 28-06-2008 to attend a Meeting with Industry Associations to review the status of Industrial Enterprises in the State of Andhra Pradesh.

Sri Vijaya Kumar, Director, MSME-DI Hyderabd inviting
Sri V.Hanumantha Rao, Hon'ble MP and Chairman, Parliamentary Standing Committee on Industry.

Shri V.Hanumantha Rao was given a warm felicitation.  Shri Vijay Kumar, Director, MSME-DI Hyderabad gave a detailed presentation on the activities of the Institute and the different Promotional Schemes available for the benefit of MSMEs in the country including the State of Andhra Pradesh.

Hon'ble MP with Director, MSME-DI and Industries Association Leaders

The Chairman appreciated the training programmes organized by the Institute, especially for the socially and economically backward sections of the society. He requested the Industry Associations to avail the MSME-DO schemes like setting up a Mini Tool Room, IPR Facilitation Center, International Trade Fairs, ISO 9000 Reimbursement Scheme, Quality Management Scheme, Bar Coding, Business Incubators and Rajiv Gandhi Udyami Mitra Yojana.

Sri V.Hanumantha Rao, Hon'ble MP and Chairman, Parliamentary Standing Committee on Industry
planting a sappling in the premises of MSME-DI Hyderabad.

The Chairman enquired whether bankers are providing small loans to micro & small enterprises without collateral guarantee or not.  After having the views from the members, he expressed his unhappiness on the the way the bankers are maintaining the negative attitude in respect of loans to the micro & small sector enterprises.  He informed to the members that shortly he would meet the Finance Minister on this issue.

Sri V.Hanumantha Rao, Hon'ble MP in Chair of the Meet.  Sri Vijay Kumar, Director, MSME-DI on his right and Sri Shujaiat Khan, Principal Director, CITD on his left.

The Chairman also wanted to know the details in regard to the sickness of the units and the reasons of sickness in small scale sector in the country and in particular Andhra Pradesh.  He suggested to the associations to prepare a revival package for the sick units.

Sri Vijay Kumar, Director, MSME-DI Hyderabad giving presentation on the activities of the Institute

Later Shri Shujaiat Khan, Principal Director, MSME-Tool Room also gave presentation on the activities of the MSME-Tool Room - CITD, Balanagar, Hyderabad.

Shri VLN Reddy, Chairman, Federation of A.P. Small Industries Association (FAPSIA) informed to the Chairman that since ssi units are the backbone to our economy, the Government must pay attention on regular power supply, easy availability of latest technology, easy availability of loans from banks, availability of trained manpower etc. since these facilities are not adequate to safeguard the interests of the Micro & Small Enterprises.

Smt. K.Rama Devi, President, Association of Lady Entrepreneurs of AP (ALEAP) stated that a proper co-ordination between Central and State Governments is required for effective implementation of policies and programmes of Central Government.  She recommended separate department for small scale industries in the State of A.P.  She also stated that the land of sick units of women entrepreneurs are taken away by the commercial agencies.  This process should be stopped and land be allotted to new women entrepreneurs who have already own small scale units.  Smt. Rama Devi also requested the Chairman to get the loan allotted in the form of SEZ exclusively for the women entrepreneurs.

The Chairman assured to take up the matter with the Chief Minister of A.P. and the bankers.

Shri R.K.Raju, Chairman, All India Manufacturers Organisation (AIMO) informed to the Chairman that the development of the industry in the State is very slow.  This is because of the paucity of supply of coal and power.  Coal is not available to the industry and coal based industries are suffering.  Sri Raju requested the Chairman to help such industries.  The increasing cost of steel is also one of the reason.  He requested the Chairman to make available the steel to micro & small enterprises on subsidized rates.

Shri M.M.Sri Ram, Chairman, Federation of A.P. Chamber of Commerce & Industry (FAPCCI) informed that while there is a fast growth of small scale industries in Tamilnadu but in Andhra Pradesh it is not the same.  The production of Tamilnadu is more from the small scale sector than from large industries.  This is because of the availability of the sufficient electricity for the MSMEs in Tamilnadu.  He also informed to the Chairman about the coming up of new cluster in the State for the Aerospace and Defence items / components.

Shri Sirish Dhopeshwar, President of Laghu Udyog Bharathi informed to the Chairman that the guidelines framed by Reserve Bank of India are not being followed by banks, due to which micro & small scale units are running here and there and not getting the loans in time.  He demanded that the micro & small scale units should be informed now by the bankers whether they are willing to follow the guidelines of RBI or not.