The Centre should consider developing industrial estates exclusively for MSMEs, with transport, power, water, road etc, and adequate support from budgetary allocation, according to FICCI-Confederation of Micro, Small and Medium Enterprises (FICCI-CMSME).

The chamber, which presented an action agenda paper titled ‘Ease of Doing Business: Recommendation for the MSME Sector’ to the Prime Minister’s Office, has also suggested that State Governments should look into developing ‘flatted factories’ with a ‘plug and play’ concept.

“The Centre should incentivise States for building flatted factories at existing industrial estates, at least in urban areas, for MSMEs,” it added.

“The process of land acquisition remains cumbersome and long drawn…. There is an urgent need for a stable land policy that balances interest of all stakeholders. Industry needs confirmed availability of land at an affordable rate over the long term,” said the paper.

Affordable housing The chamber also suggested steps to boost affordable housing complexes for workers near industrial areas, by compulsorily allocating 20 per cent land of industrial belt for low-cost housing, fast-tracking change of land use for housing purposes, and reducing land registration charges for affordable housing to 20 per cent of the rates applicable in other cases.

The Centre can also consider allotting a ‘rented accommodation’ to MSMEs in an industrial area, giving the option of purchase after a stipulated time, it added.

Labour laws As regards labour laws, the chamber suggested reduction in overtime wages and productivity-linked bonus, a single form for compliance, and deposit of Provident Fund and Employees’ State Insurance (ESI). “MSMEs should be allowed to deposit PF and ESI towards employer’s contribution only. The contribution from employees should not be the responsibility of the employer,” it added.

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