Bhubaneswar: The Odisha government has decided to focus on small-scale industries by creating block-level rural industrial estates as it realises that big ticket projects will take longer to take off.

The government has sought Rs 4,290 crore from the 15th Finance Commission as it attempts to move forward with large-scale block-level industrialisation to promote smaller units, sources said.

"Instead of focusing on large industrial estates, the state will focus on smaller ones in all blocks. It will promote rural industries based on local industries and the panchayats will have a stake in these panchayat samiti industries," said a senior official.

A draft government report to approach the finance commission says: "Despite the initiative taken for small scale industries, the growth of the MSMEs (micro, small and medium enterprises) in Odisha is not at par with that of the industrially advanced states and national average."

An official said: "Revival of sick units is dependant mostly on banks. Now, plans are afoot to evolve a mechanism where the Centre, state and banks pool in their resources to revive the sick units."

"We will seek Rs 10 crore each for 314 blocks for industrial clusters. We are seeking Rs 311.70 crore for establishment of helpdesks at the gram panchayat level," the official said.

MSME minister Prafulla Samal said: "These units generate maximum employment next to agriculture. We are focussed on their development."