MSME park dedicated to defence sector mooted in Vizag

Ch R S Sarma Visakhapatnam | Updated on July 17, 2018 Published on July 17, 2018

There is need for setting up an MSME (micro, small and medium enterprises) park in Visakhapatnam district dedicated solely to the defence sector, and the state government should pursue the matter, according to G.S Shiv Kumar, the convenor of the Confederation of Indian Industry MSME panel.

He was speaking at a session on financing MSMEs, organised by the CII here on Tuesday. He said the state government was taking steps to set up one MSME park in each of the 175 Assembly constituencies in the state and at least one park in Visakhapatnam district should be allocated solely to defence units in view of the potential here.

He spoke about the steps being taken by the CII to promote and assist MSMEs. "The bigger units such as the Visakhapatnam Steel Plant should source at least 20-30 per cent of their requirements from MSMEs, as the latter play a key role in our economy," he added.

Raghuram Shetty, General Manager of SBI, Amaravati, said Andhra Pradesh stood first in ease of doing business this year and "a number of large industries are coming to the sunrise state of AP after bifurcation, but the MSMEs are equally important. SBI, in particular, was giving them priority. “In AP, our advances amount to Rs 80,000 crore, of which Rs 12,674 crore goes to the MSME sector,” he said.

Vaibhav Sharma, regional business leader (South) of YES Bank, said his bank was giving almost 45 per cent of its advances to MSMEs, amounting to Rs 400 crore in the past six months. The bank had also launched an MSME app and had given in-principle loan sanction to MSMEs online.

Mani Lal Chaudhury, Deputy General Manager of the Small Industries Development Bank of India (SIDBI), said MSMEs could avail themselves of collateral-free finance up to Rs 2 crore from commercial banks as well as the SIDBI under the Credit Guarantee Trust for MSMEs (CGTMSE) scheme.

K.R.K Prasad, Director of MSME (DI), Vizag, said a tool room for MSMEs was being set up at Pudi village in and around Vizag at a cost of Rs 250 crore with German assistance. It may be ready early next year.

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Published on July 17, 2018
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