SME City

Dr Gautam Kothari
Dr Gautam Kothari
Problems that SMEs face in Madhya Pradesh at present:

There is a fast growth of MSMEs in Madhya Pradesh a part from independent industrial unit ancillaries. High Cost of Operation - Due to continuous increase in cost of electricity, costly transportation, continuous increase in minimum wages, higher taxes and local taxes, SMEs are facing competition with SMEs of other state. Non availability of skilled labor and low productivity is making the cost of production high. 

Poor Infrastructure and Connectivity

In industrial growth centre an industrial areas the local infrastructure is very poor. Due to poor road rail connectivity industries are facing problem in procurement of raw materials and dispatch of goods to other destinations.

Lack of Social Infrastructure in Industrial Growth Centre-

SMEs in MP face various financial and marketing problems due to unawareness of Govt.Policies. The government machinery in the state is known for its lackadaisical approach towards Commerce & Industries which is primarily because of the absence of requisite infrastructure, ambiguous tax module and bureaucratic red-tapism etc.

The State Govt. is trying to ensure good governance in the state and solve infrastructure problems of industrial growth center by raising 481 crore loan which will be provided to respective development agencies. For good governance Govt. is going to introduce Citizen Charters in the Govt. Departments which will be reviewed time-to-time.

Activities undertaken by PAS:

With the increasing growth in services and activities, PAS acts as a catalyst for "thought, plan and action" on all issues of concern to the member industry. Individual attention is paid to the problems of member units.PAS regularly organize meetings with local administration for smooth operations and solutions of problems if any.

PAS is actively participating in various programs like Seminars, Symposiums, Exhibitions organized for industrial entrepreneurs by Govt. undertakings like MSMEDI, MPSIDC, MPAKVN, MPLUN, MPFC, SIDBI and other banking institutions. Sangathan also organizes focused meetings with Govt.departments for formulation of policies, budgets and for right implementation of the same.

An Industrial Directory is published every 2-3 years so as we cover various relevant information regarding industrial policy, latest amendments rules & regulations of area, member industries etc. Besides industrial directory, PAS brings out a ‘Weekly Bulletin’ which is regularly circulated to all members, Govt. departments and other business organizations.This weekly bulletin has proven a worthy and effective
communication media between industries, other related business enterprises and Govt. dept. as well.

PAS also organizes need based seminars, symposiums, training programs, in which the members associate with appropriate organizations in private sector, NGOs and Govt. undertakings.
Special Services

In addition, PAS provides special services to its members like
(a) Buy& Sell-Product, Services, underutilized or unused assets.
(b)Match making - need based so as to optimize utilization of production capacity    
(c) Vendor Development Support    
(d) Consultancy in the field of ISO, Energy audit etc.    
(e) Arbitration support.
My Role and Responsibilities as a President:
I have been the President of PAS since its inception in 1988. I have a key role in the organization and I am responsible for executing directions of the Board.
Key Achievements of PAS:
Pithampur Audhyogik Sangathan has been regular in

•    Submitting budget proposal
•    Elimination of Inspector Raj
•    Introduction of Single Window in state of Madhya Pradesh.

Sangathan played an important role in Promoting SPVs like Pithampur Auto Cluster Ltd., created a State of Art Tool Room, with an investment Rs. 47crore, ITI and Business Development Centre at a cost of Rs. 17crore, Hazardous Waste Disposal facility in Pithampur at cost of Rs. 36crore.

Future plans for 2012:

Apart from increasing existing activities, Sangathan is proposing to enhance activities in the field of skill development, improving Govt. ITIs which is at present governed by industries Representative Committees. Looking to the double digit growth of Industrial Area, Sangathan has to play an important role in the development of local infrastructure, trying to evolve projects under PPP mode.

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