New Delhi, Feb 17 (KNN) The Union Ministry of Micro, Small and Medium Enterprises  has reconstituted the Advisory Committee.   

The Committee is the crucial entity for recommending any amendment in the MSME Development Act, 2006.

The Federation of Indian Micro and Small & Medium Enterprises (FISME)- the prominent  MSME body in the country has been nominated to the Advisory committee.

MSMEs are governed by the provisions of MSME Development Act 2006. The advisory committee has been empowered under the Act to identify, deliberate and recommend towards successful implementation of the provisions of the Act for the benefit of the MSME sector.

Required amendments in the Act itself, according to the need of the hour, are also considered and recommended by the advisory committee.

Nomination of FISME to the Committee will go a long way in strengthening of the Act and fine tuning its implementation.

As the nodal federation of MSMEs, FISME is persuing the Government for considerable time for amendments in the definition of MSMEs, strengthening of the delayed payment provisions, further enablers in the Act for participation of  MSMEs  in public procurements, etc.

The Advisory Committee is chaired by  Secretary, MoMSME include Secretary, MSDE; Secretary, Ministry of Labour and Employment, and Secretary Industries of select States.

FISME may also raise  in the Committee the vexed issues of stringent labour laws and MSME averseness of the banks and ask for their redressal  under the Act.

Another important issue may be developing a new approach foe  defining the MSMEs, away from the historic cost of investment model.  (KNN Bureau)