Ease of Doing Business for MSMEs: Industrialists in Madhya Pradesh have asked for MSME department and local administration’s intervention as the development work of textile cluster at Sukhpuri in Burhanpur has been delayed due to land encroachment, as per a report by the Times of India.
At an estimated cost of Rs 56 crore on 63 hectares, the MSME department has proposed to develop a textile cluster at Sukhpuri village in Burhanpur. The cluster development is a part of the new policy under MSME Rule 2021.
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“Development work at proposed textile cluster can start once issues are addressed. We have raised concern regarding encroachment on proposed land to the local administration and MSME department. The district collector has assured full cooperation to clear the encroachment from the proposed site. The land also has very deep pits that need to be levelled,” Burhanpur Sukhpuri Textile Cluster Association director Prashant Shroff said.
Importantly, the textile cluster is expected to attract an investment of more than Rs 800 crore and generate employment for more than 7,000 people. Besides that a 12-member Special Purpose Vehicle (SPV) has been incorporated for the textile cluster.
According to the District Trade and Industries Centre, around 225 textile and related industries would be established in the cluster.
Speaking about the progress of clusters, an official from the MSME department said, “We are in touch with industries and the work on four proposed clusters are at different stages. All these clusters will be developed in phases and we are working on issues to expedite the work,” the report noted.
Madhya Pradesh government will contribute up to 60 per cent of the development project or Rs 20 crore for developing the cluster. The industries said that they had to select land from the available options but government’s intervention is needed to go ahead with the development work.
The textile association’s director Shroff said, “Burhanpur is a hub for power looms and thousands of cottage, micro and small industries. The cluster will help in giving a level playing field to small units by cutting down on operational cost and use of advanced technology support.”
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Last month, at the Global Investors Summit 2023 Invest MP, Chief Minister Shivraj Singh Chouhan said that the investors establishing MSMEs in the industrial areas identified by the state government will not have to go through certain formalities, such as, they will not require factory licenses and business licenses among others.
Further, for small investors, the MP government is planning to launch a “plug and play” facility in which they will get established infrastructure to start their units, said Shivraj Chouhan.