FICCI-CMSME presents action agenda for ease of doing business in MSMEs
Updated: Jul 29, 2015 04:30:07pm
New Delhi, July 29 (KNN) FICCI-Confederation of Micro, Small and Medium Enterprises (FICCI-CMSME) has made wide-ranging recommendations to address the contentious and complex issues relating to land acquisition, compliance, inspection, labour laws and access to finance in order to create a conducive business environment for MSMEs.
The action agenda paper titled ‘Ease of Doing Business: Recommendation for the MSME Sector’ has been presented to the government and the Prime Minister’s Office with specific recommendations to facilitate MSMEs and enable them to make their optimum contribution to the national economy.
The paper covers various issues that need to be tackled either at the central and state levels. It included land acquisition, regulations and compliance, Inspector Raj, labour laws: procedures, improvement in access to finance and others.
The federation said government should consider developing industrial estates exclusively for MSMEs with sound infrastructure base that includes transport, power, water, road, etc. and with adequate support from budgetary allocation.
On regulation and compliance, it said the officers responsible for implementing the regulations often exercise discretion in interpreting and applying rules, thereby making the whole process convoluted and non-transparent. Even though a grievance redressal mechanism exists, the experience of MSMEs has not been positive.
On inspector raj, it said the experience of MSME units with inspectors is not at all congenial and the inspectors are often dreaded. In fact, the inspectors themselves lack understanding of rules and there is a general lack of awareness. Inspection officials are not objective and harassment is rampant.
Citing that MSME sector is a backbone of economy, the paper said timely availability of credit at the right cost is the key expectation of MSME industry from their banks. While large corporate manage to get the attention of bankers, often the smaller companies have a disadvantage in sourcing credit at right cost and right time.
The paper also recommended that benefits like provision for waiver which was withdrawn in the 2012 be reinstated for MSMEs.
The provision of waiver of security deposit up to the monetary limit for which the micro and small enterprises (MSEs) is registered with National Small Industries Corporation Ltd (NSIC) under its single point registration scheme. (KNN Bureau)
The action agenda paper titled ‘Ease of Doing Business: Recommendation for the MSME Sector’ has been presented to the government and the Prime Minister’s Office with specific recommendations to facilitate MSMEs and enable them to make their optimum contribution to the national economy.
The paper covers various issues that need to be tackled either at the central and state levels. It included land acquisition, regulations and compliance, Inspector Raj, labour laws: procedures, improvement in access to finance and others.
The federation said government should consider developing industrial estates exclusively for MSMEs with sound infrastructure base that includes transport, power, water, road, etc. and with adequate support from budgetary allocation.
On regulation and compliance, it said the officers responsible for implementing the regulations often exercise discretion in interpreting and applying rules, thereby making the whole process convoluted and non-transparent. Even though a grievance redressal mechanism exists, the experience of MSMEs has not been positive.
On inspector raj, it said the experience of MSME units with inspectors is not at all congenial and the inspectors are often dreaded. In fact, the inspectors themselves lack understanding of rules and there is a general lack of awareness. Inspection officials are not objective and harassment is rampant.
Citing that MSME sector is a backbone of economy, the paper said timely availability of credit at the right cost is the key expectation of MSME industry from their banks. While large corporate manage to get the attention of bankers, often the smaller companies have a disadvantage in sourcing credit at right cost and right time.
The paper also recommended that benefits like provision for waiver which was withdrawn in the 2012 be reinstated for MSMEs.
The provision of waiver of security deposit up to the monetary limit for which the micro and small enterprises (MSEs) is registered with National Small Industries Corporation Ltd (NSIC) under its single point registration scheme. (KNN Bureau)
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