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Exporters, small firms propose plug-n-play facility

Exporters and small manufacturing firms have proposed to set up "plug-n-play" facility on the lines of Kenya and Ethiopia to start instant production without being stuck in getting regulatory clearances.

Exporters, small firms propose plug-n-play facility

New Delhi

"Small countries like Ethiopia and Kenya have created world class infrastructure of plug-n-play where even the businessmen from Bangladesh are going to produce garments. We need to look into this," said Ajay Sahai, Director General & CEO at the Federation of Indian Exports Organisation (FIEO).

In the IT sector, plug-n-play offices refer to facilities where Internet, power supply and conference areas are provided. The exporters and small manufacturers want government to provide ready infrastructure for starting production.

They have made a strong case for it in their discussion with Finance Ministry officials and want a plan to be announced in the upcoming Union Budget for 2020-21.

"Start-ups or a new person entering into manufacturing can not afford the high land and building cost in the beginning. So, if plug-n-play infrastructure is provided on a modest lease rent, they can come and start working," said Animesh Saxena, President of the Federation of Indian Micro Small & Medium Enterprises (FISME).

The plug-n-play infrastructure is set to minimise the risk for investors as in case the business fails, the investors can move without any liability.

"We have suggested this for the MSME sector. It will be a good step if government provides it," Saxena said.

Among other suggestions, the exporters' body has suggested to nominate a nodal officer to help firms investing $10 million or more in manufacturing.

"Government may nominate nodal officer for every investor investing beyond a threshold limit whose job should be to provide all clearances/approval to the investor from the statutory agencies," the FIEO is learnt to have told Finance Ministry officials.

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