New Delhi, Dec 19 (KNN) Prime Minister Narendra Modi addressed to the concerns of the MSME sector in a  ‘cashless’ economy, during his  speech to the BJP MPs on Friday.

Mr. Modi referred to the concerns of the business sector that if they move from cash based transactions to Digital, their turnovers may increase and they will be in the radar of the authorities.

The PM announced “I have instructed the officers not to go for any post-mortem; otherwise you will not be able to bring the people in the mainstream”.

It may be mentioned that a large number of MSMEs has expressed the same concern in moving to ‘Digital’ economy and requested Prime Minister’s intervention on the issue.

FISME the leading federation of Indian MSMEs, in a letter to the Prime Minster has listed the crucial issues in migration of millions of enterprises from informal to formal sector and in the process transform the Indian socio-economic milieu for all time to come.

“If pushed into the new regime without a well thought out strategy to bridge the chasm, millions of businesses would perish leaving a trail of destruction with huge social & political consequences” articulates the letter from FISME President Dr. Sangam Kurade, addressed to the P M.

Exactly, as assured by the Prime Minster, FISME has asked for a comprehensive ‘amnesty’ – a kind of safe passage, in two spheres a) Taxation (Direct and Indirect Tax) and b) Labour/ Social Security.

FISME has also asked for “an assurance that the government machinery will also be reformed and made to work for the good of the nation and not to serve vested interests”.

On the labour front, Mr. Modi, in his address to the  BJP Parliamentarians has mentioned that he has instructed the labour Ministry to not ask for last ‘six years’ record, just because the number of workers has increased after 8^th November,, 2016. This bureaucracy will not be allowed, he has announced.

PM has further said that whoever wants to come to the mainstream should be given a chance. The ‘digital system’ makes it feasible and the people will not tolerate tyranny of the bureaucracy, Modi said.

FISME it its appeal to the PM has also suggested that alternative option should be made available to employers/ employees for the ESI and the EPF, the two labour welfare provisions.

The threshold of salary for mandatory Provident Fund deductions should be raised; the Employer’s contribution should be fixed @ 10% while the contribution from employee should be made voluntary, asked FISME, as  already been announced for apparel sector, says the letter from FISME President.

FISME has also stressed that the responsibility of providing medical facilities should be taken up by the State itself and the ESI contribution should be completely done away with.

Whether the Modi Government could be able to further rationalise the Labour Laws is a moot question!!

And what will be the approach of the state Governments, who implement the labour laws, on the implementation of Mr. Modi’s edicts, is another big question!! (KNN/ DB)