The credit flow of banks to medium scale industries in Odisha has dropped by whopping 23.5 per cent in 2013-14 even as it grew by 29.2 per cent for micro and small enterprises."If we take bank finance as an indicator of growth in this segment, the credit flow  to micro and  small enterprises in Odisha has registered an increase of 29.2 per cent from Rs 13,789  crore to Rs 17, 810 crore during 2013-14, against  an all India growth of 23.1  per cent. However, credit flow to medium scale industries registered a decline of 23.5 per cent to Rs 2616 crore with the opening of new accounts registering sharp decline of 66 per cent", said KM Trivedi, Chief General Manager, State Bank of India(SBI), Bhubaneswar circle. He was speaking at the 3rd edition of MSME Summit Cum Expo-2014 organised by Indian Chamber of Commerce (ICC).On the slow growth of MSME sector in Odisha, he said, unrealistic projection in the project reports, unrelated expansion and excess capacity creation have caused the premat

Credit to medium scale units drops by 23.5% in state

BS Reporter

The aluminium utensils industry in Jagadhri in Haryana is feeling the heat of competition from low-cost substitutes, with the share of aluminium utensils in the utensils industry shrinking viz-a-viz stainless steel. As a result, capacity utilisation has come down to 60 per cent in the last few years. The cluster comprises around 100 aluminium utensils manufacturers, a majority of them in the micro, small and medium enterprise (MSME) category.The industry wants the state government to offer protection with regard to the levy of VAT/CST and the Central government to abolish Central excise duty, apart from classifying aluminium utensils in the exempted category in the proposed Goods and Services Tax (GST).Tarun Goyal, president, Federation of All India Aluminium Utensils Manufacturers, told Business Standard, "The overall percentage of aluminium in the utensils sector is shrinking viz-a-viz stainless steel, mainly on account of low-cost stainless steel in grades other than 302/304, which

Aluminium utensils industry feels the heat of competition

Business Standard

This is perhaps the first time Indian SMEs have associated with a university in an export market to boost the reach of their products

US varsity crafts business plan for Tirupur exporters

Creation of a vibrant entrepreneurial ecosystem could help increase the contribution of the micro, small and medium enterprise (MSME) sector to India's GDP from the current 8 per cent to 15 per cent by 2020, and increase the sector's share of employment from the current 28 per cent to over 50 per cent of total employment across the agricultural, manufacturing and services sectors, according to a new KPMG-CII study.The distance India needs to travel in this regard is clear from the fact that in 12 other countries mentioned in the study, titled, The New Wave Indian MSME: An Action Agenda for Growth, the MSME sector's GDP contribution varies from a low of 22 per cent in Brazil to a high of 85 per cent in Taiwan.The only countries with lower employment shares than India are Argentina (15 per cent) and Russia (23 per cent). Others vary from UK's 52 per cent to Canada's 90 per cent. India's 46 million MSMEs employ 106 million people; the study says appropriate policies can take this number u

MSME share of GDP can be raised to 15 pc by 2020: Study

CRISIL has studied the performance of 2,100 micro, small, and medium enterprises (MSMEs) rated by it in the trading sector in 2013-14 (financial year April 1 to March 31). The study was conducted to understand the sector's working capital patterns, which indicates that these enterprises depend more on credit provided by suppliers than on short-term borrowing from financial institutions (FIs). About 41 per cent of their aggregate working capital is financed by supplier credit, in comparison to 30 per cent arranged by FIs.MSMEs in the trading space consider supplier's credit as the best option for funding inventory owing to the lack of timely and collateral-free credit from FIs. MSMEs generally have limited access to credit, which forces them to borrow from suppliers or unregulated sources, and thus they end up paying much higher interest. This impacts their profitability and also leads to product overpricing. Availability of credit at affordable cost is therefore critical for MSMEs in t

Trading MSMEs rely more on supplier credit

Complimenting the prime minister and his government for announcing several labour policy reforms, Sanjay Bhatia, president, All India Organisation of Employers (AIOE), an allied organization of Ficci, has said that the ongoing 'Inspector Raj' and procedural complexities had stifled the potential of micro, small and micro enterprises (MSME).This was stated by a news release issued by the Federation of Indian Chambers of Commerce and Industry (Ficci), of which AIOE is an allied organisation.The reforms, riding on technology, therefore, constituted a significant milestone, Bhatia said. He hoped that these efforts would improve compliance drastically. However, providing training to rural-based enterprises on application to the portal would be critical for the success of the scheme.Improving the apprenticeship system would require facilitating enterprises through incentives to encourage them to enroll more apprentices. It was a matter of concern that while the number of enterprises in the c

'Inspector raj' stifled MSMEs: AIOE

In an industry conclave in Lucknow last month, Akhilesh Yadav had promised to meet industrialists
once a month

UP small, medium units want grievances addressed

The United Nations Development Programme (UNDP) is implementing a project by which India's steel re-rolling mills can use advanced energy-efficient technologies called second generation (SG) technologies for energy conservation, according to Knowledge News Network, a media platform that focuses on the Indian micro, small and medium enterprise (MSME) sector.The project is a part of the programme, 'Upscaling energy-efficient production in the small-scale steel industry in India', being implemented with support from Australian Aid and the Union ministry of steel. UNDP has identified five SG technologies in selected steel re-rolling mills in India for energy conservation and will support their adoption.The five identified SG technologies are power generation through waste heat recovery from flue gas, effective furnace atmosphere control through automation, high-performing insulation for re-heating furnaces, coal drying using waste heat available in flue gas and energy efficiency in motion

UNDP to aid energy efficiency programme

Fly ash, residue generated in the combustion of coal at power plants, is available in plentyThe slowdown in the realty sector owing to tepid demand has hurt suppliers of construction material but small entrepreneurs manufacturing fly ash-based bricks have their hands full."There is no dearth of demand and I supply one lakh bricks every day. I am utilising the full capacity of my plant," said Vinu Paul, director of Paul Bricks Limited, Nagpur.Fly ash, which is a residue generated in the combustion of coal at thermal power plants, is available in plenty. Bricks made out of fly ash are more cost-effective than conventional red clay bricks. They have been used extensively in the Delhi Metro Rail project.Anil Arora, director of Delhi-based M J Bricks Company, supplied these bricks to L&T for the construction of Delhi Metro.Arora is one of the pioneering manufacturers of fly ash-based bricks in India, having forayed into it after the Supreme Court of India issued an order in November 199

Small players produce fly ash bricks

We have ordered some goods from France that will first go to China for some processing and then arrive in India. How will the Customs value the goods? Customs will go by the transaction value if the invoice from France represents the full price paid or payable for the goods as presented to the Customs for assessment and you don't make any other remittances in connection with the sale of the goods. However, if you pay the Chinese party separately or bear any other costs in connection with the sale of the goods that are not included in the invoice from France, the Customs will load such amounts, in accordance with Rule 10(1)(e) of Customs Valuation (Determination of Value of Imported Goods) Rules, 2007.For regularisation of default in our Export Promotion Capital Goods (EPCG) authorisation, can we purchase duty credit scrips issued under Status Holder Incentive Scheme (SHIS) from the market and pay the duty through that scrip?As per Para 3.16.3 of the Foreign Trade Policy (FTP), SHIS scr

'Duty credit scrips can be used to pay customs duties in cases of default'

The Kerala government will soon announce a new startup and innovation policy to promote entrepreneurship, said Chief Minister Oommen Chandy today.

Kerala govt to announce new startup and innovation policy

CRISIL has studied the organisation structure of 835 micro, small, and medium enterprises (MSMEs) rated by it in 2013-14 (financial year April 1 to March 31). The study indicates that MSMEs with a decentralised structure (i.e., where the second line of management has decision-making powers) have an edge over MSMEs in which day-to-day administrative and operational decisions are made by the enterprise promoters themselves (centralised structure). Nearly 87 per cent of decentralised MSMEs had strong internal systems and controls, resulting in high efficiency in business operations, as against 67 per cent in centralised MSMEs.A centralised structure is seen mainly in proprietorship and partnership firms, with about 68 per cent relying solely on the promoter for day-to-day operations, while in the sampled decentralised enterprises the majority comprise private and public limited companies (63 per cent).Further, the practice of vesting decision-making powers with the second line of manageme

Management depth: The key to operational efficiency

Lack of resources, lack of government support and low returns on investment are among the major reasons why so many units have closed

Batala foundries, machine tool units in dire straits

At a time when the global markets have started opening up and buyers' sentiment is improving, the knitwear industry in Tirupur, which houses a large number of small and medium enterprises (SMEs), has asked the Centre for a Rs 300 crore market promotional fund and a separate fund for R&D. The industry also wants the government's help in skill development.The recommendations come in a memorandum to the government at a time when the NDA government is promoting its 'Make-in-India' campaign aggressively in support of Indian manufacturing.A Sakthivel, president of the Tirupur Exporters Association (TEA), said the industry is happy that the prime minister has stressed an economic vision based on increasing production and export, creating jobs and giving particular attention to concepts such as skill, scale, speed, and zero defect-zero effect (on the environment).The ministry of textiles is also taking steps for the development of the textile industry, he said, adding that the industry is

Tirupur exporters seek government funding

We have excise registration as a manufacturer. We want to start trading also from the same premises. Do we need to make any change in our registration or get any permission? Do we need to reverse the Cenvat Credit in terms of Rule 6(3)(i) of Cenvat Credit Rules 2004 read with Explanation I to Rule 6 of the said Rules, as trading activity is an exempted service in terms of Section 66D of Finance Act 1994, and we are not maintaining separate accounts for the exempted and non-exempted services?You do not need any permission to receive, retain or store duty paid goods, either manufactured by you or received from others in the factory premises. You may refer to Pune Commissionerate Trade Notice no. 67/2003 dated December 9, 2003 in this regard. As an unregistered dealer, you do not need any registration or change in your existing registration. However, if you want to issue Cenvatable invoices, you must obtain a separate registration as a dealer. In any case, you have to make sure that your

'Manufactured goods and trading goods should not get mixed up'

The Union ministry of micro, small and medium enterprises (MSME) is lobbying with the public sector banks (PSBs) to extend loan facilities to micro and small enterprises - one of the major sources of employment in the country - at the base interest rate. This would help the sector to access a vast amount of capital from financial and banking institutions at much cheaper rates in its bid to roll out quality products and run enterprises efficiently.Kalraj Mishra, Union minister for MSME, last week met senior officials of banking and financial institutions so that an early decision is taken on this front with their concurrence, which will be duly endorsed subsequently by the Reserve Bank of India, the finance ministry and the Prime Minister's Office (PMO).MSMEs across the country need capital at relaxed rates of interest to run their enterprises and cater to the needs of their larger counterparts as well as contribute substantially to India's manufacturing and external engagements, accord

Ministry lobbying PSBs to lend to small units at base rate

The Central government proposes to roll out the new policy for the micro, small and medium enterprise (MSME) sector in the next 30 days, according to Kalraj Mishra, the Union minister for MSMEs. Until now the sector has been governed by the industrial policy in force, and does not have a policy of its own."As per stipulation of the new policy, the general procedures as well as procurement procedures would be vastly simplified and all clearances for setting up of micro and small businesses would be accorded online within a fixed period of 15 days," Mishra said at a function in New Delhi, without elaborating further.The Budget speech of Finance Minister Arun Jaitley had proposed to "redefine" MSME sector activity, and the new policy is being chalked out by a select committee formed with officials from the Reserve Bank of India (RBI), ministry of finance and the MSME ministry.Apart from simplifying general procedures and procurement, the new policy will also simplify the registration of M

New MSME policy to roll out in 30 days

A report says it is 'highly debatable' whether investment levels are optimal

Evaluate PM's job scheme for sustainability: Study

The small scale industry also wants similar facility in case of VAT refund

SMEs in MP seek reduction in procedural delays

The draft is aimed to give boost to small units

Uttarakhand finalises new policy for MSMEs

The centre will operate as a one-stop shop, aggregating financing options from various major financial institutions

CII sets up online finance centre for SMEs in Himachal

SME: Find all the latest news on Small and Medium-Sized Enterprises in India. Explore more for the top headlines about SME sector on Business Standard.

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