Focusing on Industrial expansion and new opportunities – Mr. Umesh Tayade, President of AAMA

Additional Ambernath Manufacturer’s Association (AAMA) is representing the industries of Additional Ambernath MIDC Area since 1982. Today 800+ SMI are operating in the area. AAMA is playing a more important role as coordinator amid the industries and Govt. Bodies. In a Candid Interview with SME Venture, Mr. Umesh Tayade, President of Additional Ambernath Manufacturers Association deliberated about the association and current challenges faced by SMEs. Let’s have a glance at it.

• Being the honorable president of Additional Ambarnath Manufacturer’s Association, what are the schemes and activities you have been undertaken for the growth of small scale industries?

At Additional Ambarnath Manufacturer’s Association (AAMA), we are representing Industries of Addl. Ambernath MIDC area since 1982. Today 800 plus Small and Medium Industries are operating in the locale. Each Industry has to run via various hindrances before beginning and also in the operational era.

Some government programs and schemes help businesses start, grow and relocate to specific areas such as Collateral free SME loans,  MSME support, and Outreach Program, Market Development Assistance Scheme. We update about those schemes to our members and motivate them to utilize in an efficient way.  To ensure businesses have access to qualified workers, we arrange worker training programs also.

• Currently, what are the challenges SMEs are facing and how you are planning to resolve it?

First of all, we have lots of chemical industries. MIDC has been given Common Effluent Treatment Plant assurance long back to the chemical industries to resolve the issues of pollutants. But the issues haven’t solved yet.

The Second challenge is about road and transportation issues.  Our roads around the industrial area are in very shabby condition. There is hardly 100 km of roads are not in good condition. As we have a lot of MNCs here, the foreign companies were disappointed due to our poor infrastructure.

Due to the transportation issue, we have 50,000 labors in our industrial area. But our Entire workforce coming through auto from the station. These major transportation problems need to be resolved.

We are confronting even Communication service problems. BSNL network is not working in our area. Hardly 10% of our industries having BSNL landline connections. 70 to 80% of people are not getting the connection also. BSNL is not putting its cable network. Even they are not giving lease lines and unfortunately, even the private operators TATA, Reliance, are not in the position to give us the proper network connections. We are totally depending upon the local network people like a cable operator.

Finally, we can say about Billing issues. As compared to other state, power tariffs are very high in Maharashtra. Due to this, we couldn’t compete with other states.

• What are the functions of the Udyog Setu Committee

AAMA is on the Government formed Udyog Setu Committee, which is monitoring the operations of MPCB, MIDC, DISH, DIC, Boiler inspection Dept. Shop and Establishment Dept, etc. to see that these bodies are delivering their functions like NOC.s, Consents, Approvals and many more in the stipulated time period.

When the  Udyog Sethu was formed, every month MIDC, MPCB, MSEDCL, labor department used to come together and discuss on how many applications came and disposed of. Everything was operating efficiently through Udyog Sethu.

But at present, Udyog Sethu Committee is a powerless body, due to the online systems of the modern era.  During the meeting, any departments like  MPCB, MSEDCL, labor department don’t give the statistics to the Udyog Sethu committee about the applications they have been received, either by renewal or for the new one.  So, as per our view, currently, there is no prominence for the Udyog Sethu committee.

• Can you deliberate about the MSME facilitation Council?

AAMA is on the “MSME Facilitation Council”. It is one of the best judicial body and doing a good job. This council handling the cases of nonpayment to MSME after the supply of the goods in all over India. This Council is formed by State Govt. under MSME act 2006 & having Authorities to give Decree in such disputed cases which can be challenged in the High Court only after paying 75% of the order.

But there are lots of transformations are required in this MSME Facilitation Council. For example, last year suddenly one judgment given by the Bombay high court, that PSU of Government Dept. should do the arbitration. But in our view,  the arbitrator should be either a finance person or a technical person. As we have the same qualities, we could do better arbitration. So the Government should give some different law so that nobody can interfere with the council’s day to day work at a low cost of different at the higher strategy at a variable cost. And Some unusual power should be given to the council

• Can you briefly explain about the GST outreach program that you had organized and its advantages for the entrepreneurs?

The Goods and Services Tax, was a very significant step in the field of indirect tax reforms in India. Aimed at enhancing the economic integration of India, the tax system searches for to put in place a simpler, technology ambitious tax regime that facilitates ease of compliance from businesses while expanding tax revenue and ease of administration. The Central Tax Department has been tasked with the flawless implementation and administration of the new tax management.

As an element of this authorization and its position as facilitators of trade and industry, the Department has determined to carry out a series of outreach programs countrywide to lift responsiveness about GST among different stakeholders comprising commerce and industry, tax practitioners and officers of the department.

GST Outreach programs focus on three themes – Consumer Awareness, Small and Medium Sector Enterprises and GST return filing.

• According to you, what are the industrial growth factors are important for establishing industries?

For the economic growth of India, Industry should develop in an efficient manner. So for the better growth of the industry, we need infrastructures like the best transportation system, electricity facilities, water supply, telecommunication facilities, and broadband, common effluent disposal facility, etc.

• Are there any projects you are planning for SMEs in the upcoming days?

We are planning for more and more seminars, workshops and training for our members to grow their industries. More than 50 industries will come further. 97% of the land of  Additional Ambernath already allotted. Now the remaining 3% of the land is in litigation allotted to start a phase 3 project. There will be 100 industries are coming up in the 3rd phase, the Pale MIDC project.