Udupi district CEO directs DIC to identify SSI problems

Udupi district CEO directs DIC to identify SSI problems

Mangalore Today News Network

Udupi , 24, 2012 : S. A. Prabhakar Sharma, CEO of Udupi Zilla Panchayat (ZP), on Monday directed the District Industries Centre (DIC) to conduct a survey on the problems of industries in Udupi. He directed the DIC to collaborate with banks in the district, particularly Syndicate Bank. The ZP CEO was addressing a meeting of the district-level review committee for banking in Udupi.

DIC officer Ramesh Murthy had brought it to the ZP CEO’s attention that the DIC’s goal was to facilitate the establishment of 400 small scale industries (SSIs) this financial year. As a result, 25 new cashew processing units will be set up in Udupi. Since Rs. 25 lakh is required to set up an SSI, the DIC provides entrepreneurs subsidies and incentives.

The DIC had a target of 450 SSIs last year and achieved 90 percent of its goal. A number of cashew processing units, oil mills, and other SSIs had been set up in Udupi last financial year.

On the downside, around 35 percent of the SSIs established ever since the DIC was formed in 1997 closed down because of a number of factors. Mr. Murthy said that old SSIs are closing down as and when new SSIs are coming up in the district.

In response, Mr. Sharma said that a survey on the problems of SSIs in Udupi will help the DIC as well as the district administration find solutions to these problems and facilitate industrial development in the district.

Further, Mr. Murthy said that the DIC has prepared Vision 2020 to help the growth of industries in Udupi. This document identifies areas with potential for growth such as automobiles, plastic industries, fisheries, building material, garments, and so on.

Stating that lending in the priority sector was not satisfactory in Udupi, Mr. Sharma said that he has received complaints from beneficiaries belonging to weaker sections that banks were harassing them to produce no due certificates from other banks. Urging banks to dispose off loan applications within the stipulated time, he said that bank managers are not pro-active in this area.

Prasad Rao, assistant general manager of NABARD; A. Vijaya Kumar, lead district officer for RBI in Bangalore; and K. Subba Rao, lead district chief manager, were also present.