Maha govt sets up committee to revive closed SMEs

The Dollar Business Bureau

The Maharashtra government has devised a committee, which will look into the reasons leading to the closure of small and medium-scale enterprises (SMEs) in Marathwada and Vidarbha regions.

The main aim behind this move is to make the state industry-friendly and also to create employment opportunities in the state.

The committee is headed by Sudhir Mungantiwar, the state finance minister. The Minister said that there are overall 2,54,050 small scale industries in Maharashtra out of which 30,549 are shut down. The minister said that the government officials and small scale industry representatives are a part of the committee. The committee is supposed to file its findings within four months in order to revive the closed down industrial enterprises.

Mungantiwar said that the main reasons behind closure of these industries are outdated machinery, unpaid bills and outstanding VAT or taxes. Along with that, another reason that is leading to the closure is if the businessmen do not get loans to upgrade their business, leading to the owners to stop all activities in order to avoid losses.

The panel will visit all the districts of Marathwada and Vidarbha regions to find the causes for the closure of the units. After that it will prepare a report, and based on its findings, the government will incorporate changes in its policy.

The minister said as per the initiative of ‘Make in Maharashtra’ even if half of the closed down units are restarted, keeping focus on the new ones, it would help in creating lot of employment opportunities.

He also informed that the main reason for the farmers’ suicide is unemployment. And if these small scale industries can generate employment opportunities, it would play a major role in suppressing these deaths.