Micro, small and medium enterprises feel neglected in AP

Visakhapatnam: Despite the three consecutive Partnership Summits in the coastal city that attracted memoranda of understanding (MoU) in hundreds and investments in lakhs of crores and Andhra Pradesh hogging national limelight for sharing the top slot with Telangana in ease of doing business, many entrepreneurs from key micro, small and medium enterprises (MSMEs) segment say the situation on the ground is starkly different and it’s not an easy task to get approvals if one is not a large or overseas investor.

“At conclaves like this, they paint a rosy picture about the investment climate and ease of doing business. But the reality is different and investors face innumerable challenges right from getting approvals to obtaining incentives. There is no doubt, overseas investors get red carpet welcome and can get everything done fast. But, that’s not the case with MSME investors from India,” an entrepreneur told The Hans India at the Partnership Summit here, requesting not to be quoted.

He went on to buttress his view by saying that the Andhra Pradesh government couldn’t develop a proper new MSME park in the past three and a half years. “It’s an undeniable truth that MSMEs account for the largest chunk of new jobs that the industrial sector generates. A large company creates four jobs for every Rs1 crore investment it makes while in the case of MSME, it’s 24 jobs. Going by this, the MSME sector should get the top billing in the government policies and incentives as we need more and more jobs. But that’s not the case in AP,” he explained.

Another entrepreneur felt that MSME sector was not being given due recognition at the Partnership Summits. “Most of the delegates are from the MSME sector, but their issues are not being discussed here,” representative of an MSME industry body rued. He came prepared to attend the summit for three-days, but disappointed by lack of recognition for small companies, left the city immediately after the inauguration.

He, however, suggested that AP should develop MSME parks at strategic locations across the State, at a faster pace. “The government has signed some agreements for developing MSME parks, but we don’t know whether those parks have been grounded. It will do a lot of good for the State if more and more MSME parks are developed on a war-footing.

Besides, the government should say ‘yes or no’ instead of keeping projects in limbo for months together,” he said. However, G Sambasiva Rao, President, Andhra Pradesh Chambers of Commerce and Industry Federation, has a favourable view of what is going on in Andhra Pradesh. “MSMEs are getting their due recognition in the State as AP offers a conducive environment for their growth.

However, the government is finding it difficult to develop MSME parks due to land litigations. The moment some land is declared as a park, people are approaching courts,” he said. On the MSMEs not being given preference at Partnership Summit, he said the government can’t call MSME entrepreneurs on to dais. “Also Chief Minister can’t be present at MoUs which entail small investments,” he reasoned.

By P Madhusudhan Reddy