In order to spruce up its agenda of making Maharashtra an industry-friendly state and generate employment, the state government has formed a committee that will look into the causes of closure of smal
In order to spruce up its agenda of making Maharashtra an industry-friendly state and generate employment, the state government has formed a committee that will look into the causes of closure of small-scale industries in Vidarbha and Marathwada region.
State finance minister Sudhir Mungantiwar said that there are a total of 2,54,050 small-scale industries in the state, out of which 30,549 are closed. “There are three reasons due to which these industries are closed. Either they have outdated machinery, which cannot be used anymore for production of goods or their dues are not paid on time, for which their connections are taken off. For instance, there are industries which have huge electricity bills pending or VAT or other taxes pending,” Mr Mungantiwar told reporters.
“Also, an important reason for the closure of industries is that they do not get the loan required to advance their business. This makes industry owners completely stop all activities to avoid losses,” he added.
The committee, which will be headed by Mr Mungantiwar, will include representatives from small-scale industries and government officials. It will submit its report within four months to start closed down industrial units.
The committee will look into the causes of closure of industries by visiting all districts in the Vidarbha and Marathwada region. It will then make a report, based on which the state will make policy changes.
“In times of Make in Maharashtra campaign being run by our government, if we can get at least 50 per cent of old closed industries to start operations while we focus on new ones, it would generate a lot of employment,” the minister said.
Mr Mungantiwar said one of the reasons for farmer suicides is lack of employment, and that small-scale industries will play a big role in stopping them.
