Govt to set up toolrooms to boost innovations in MSME

In a bid to encourage entrepreneurs and bring innovation in product designing, the Union government is considering to set up 18 toolrooms across the country on Public Private Partnership (PPP) model.

The Union minister for micro small and medium enterprises (MSME), Kalraj Mishra informed that the government is considering to set up toolrooms at universities with partnership with private players.

"Each toolroom will cost around Rs 150-200 crore. We have laid foundation stones for a few and others will come up soon in partnership with private players," said Mishra in his address at the Vadodara Chamber of Commerce and Industry (VCCI)'s five-day industrial expo.

Mishra further mentioned that in order to encourage innovations, the government wll also encourage setting up of 500 incubation centers across the country.

Commenting on the Public Procurement Policy of mandatory 20 per cent procurement by PSUs from MSMEs, Mishra maintained that out of the 146 PSUs, only 37 complied to the norm so far.

"We have decided to make this mandatory for PSUs from APril 1, 2015. This will encourage MSMEs to meet the required qualty standards and take up innovations," said Mishra.

On the third day of the VCCI's expo, all industrial federations from Gujarat and several others from states including Maharashtra, Madhya Pradesh and representatives from Indian SME Forum raised the challenges faced by MSME.

Some key concerns raised by the industries included rollout of GST, rates of excise duty and service tax, labour issues and financing challenges.

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