The Hindu Business Line : AP Govt to set up district-level panels to study SSI woes

THE Andhra Pradesh Government has decided to set up State-level district level committees comprising officials and members of the small-scale industries to look into the problems faced by the industry.

The Major Industries Minister, Mr B. Satyanarayana, and the Commercial Taxes Minister, Mr Konatala Ramakrishna, gave this assurance to a delegation of industry representatives here on Saturday.

The Ministers said that the proposed committees would guide the officials in implementing the Government Orders on several issues pertaining to the industry, Mr B.V. Rama Rao, President of Federation of Andhra Pradesh Industries (FAPI), said here in a press release on Sunday.

"They also promised to talk to the bankers in order to address the financial problems of the entrepreneurs," he said.

Earlier addressing a State-level convention to discuss the problems being faced by the industry, speakers demanded that all the accumulated bank interest rates and power bill dues be waived in order to revive sick industries.

They called for the setting up of an Rs 250-crore revolving fund by the State Government.

Asking the Government to come out with a new industrial policy, they said capital investment subsidy should be increased to 30 per cent from 10 per cent.

They also wanted all government departments and public sector utilities to source their requirements from the local SSI players.

Ms K. Rama Devi, President of Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP), said it was time industry associations came to the rescue of the SSI sector.

"We have launched a scheme called pancha ratna (five jewels) to help out women entrepreneurs. We provide them with infrastructural support, training, credit and marketing support," she said.

Stating that marketing support to SSIs should be viewed as a social obligation, she said corporates such as Dr Reddy's, Godrej and RPG readily agreed to buy some products from ALEAP members" she said.

The major hurdle for entrepreneurs was working capital needs.

"They tap all their resources to start the venture. But they end up with no money to run the venture. This is where banks and other financial institutions should step in," she felt.

She also wanted legal support in making the buying parties to honour the agreements.