New Delhi, Oct 20 (KNN) The Global Alliance for Mass Entrepreneurship (GAME) and the Federation of Indian Micro and Small & Medium Enterprises (FISME) on Thursday announced a collaborative work program aimed at promoting Micro, Small, and Medium Enterprises (MSMEs) and entrepreneurship in India.

The comprehensive cooperation program encompasses various facets, including finance, the adoption of renewable energy, and in-depth research into persistent MSME issues. However, the immediate priority lies in identifying legal and policy impediments related to resolving delayed payment cases.

Signing the pact, Anil Bhardwaj, Secretary General of FISME, underlined the significance of this initiative, stating, “The foremost focus is on pinpointing and addressing the legal and policy challenges hindering the resolution of delayed payment cases.”

Both FISME and GAME are poised to convene a national workshop that will scrutinize the provisions of the Micro, Small, and Medium Enterprises Development (MSMED) Act, taking into account on-ground experiences and court judgments.

The Global Alliance for Mass Entrepreneurship (GAME) has dedicated itself to a mission to co-create and enhance the enabling conditions for broad-based entrepreneurship. Their goal is to fuel the rapid and sustainable growth of MSMEs, which play a pivotal role in propelling the Indian economy and generating millions of quality jobs by 2030.

One of the most pressing issues for MSMEs is the chronic problem of delayed payments. According to the GAME report from 2022, the overdue amount stands at a staggering Rs 8.55 lakh crores. Ramesh Dharmaji, Senior Advisor to GAME, stressed the need for a multi-faceted approach to tackle this issue.

In addition to the efforts of FISME and GAME, the Office of Development Commissioner under the Union Ministry of Micro, Small, and Medium Enterprises is actively engaging with stakeholders to enhance the effectiveness of provisions under the MSMED Act.

During a recent seminar organized by FISME, attended by the 'Friends of MSMEs in Parliament,' key issues related to reducing litigation costs for MSMEs took center stage. Union Law Minister Arjun Ram Meghwal addressed the seminar, where the issue of delayed payments and the ineffectiveness of the corresponding provisions were prominently discussed.

It was pointed out that, even after the usual delays in the process of filing cases and their adjudication by Facilitation Councils in various states under the MSMED Act, MSMEs continue to face challenges. Arbitration awards are frequently contested in High Courts and, in some cases, escalate to the Supreme Court.

FISME and GAME are committed to finding a lasting solution to this longstanding issue. Furthermore, their joint initiatives also place a significant emphasis on the banking and finance sector. The collaboration between these two entities holds promise for driving positive change and providing much-needed support to the MSME sector.

During the exchange of MoU, besides the Anil Bhardwaj and Ramesh Dharmaji, those present included Radha Radhakrishnan, Head of Communications, GAME and from FISME Mayank Gaur, Joint Secretary and Archit Tripathi, Deputy Director. 

(KNN Bureau)