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Rajasthan’s new ordinance for MSMEs would exempt MSMEs from various inspections, penalties and approvals: Chief Secretary

Updated: Jul 09, 2019 07:28:00am
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Rajasthan’s new ordinance for MSMEs would exempt MSMEs from various inspections, penalties and approvals: Chief Secretary

New Delhi, July 9 (KNN) Rajasthan government had notified an Ordinance simplifying the procedure for establishment and operation of Micro, Small and Medium Enterprises (MSMEs) last month.

Commenting on this, Chief Secretary of Rajasthan, D.B. Gupta said the new provisions would exempt MSMEs from various inspections, penalties and approvals during the initial years of operation.

The MSMEs will be required to submit their declaration of intent to the Bureau of Investment Promotion, which will act as the nodal agency. He said the District Industries Centres would publicize the Ordinance.

The Ordinance has several provisions for facilitating declaration of intent and approval by government agencies.

The Micro, Small & Medium Enterprise (Facilitation of Establishment & Operation) Ordinance, 2019, will allow a businessman to start a new enterprise with mere self-declaration, without the need for seeking an approval or inspection of any department for the next three years.

An entrepreneur will be required to submit a ‘declaration of intent’ for setting up a new enterprise to the nodal agency, which will issue an acknowledgement certificate.

However, after the expiry of three years term, the enterprise will have to obtain required approvals within six months.

Earlier talking to KNN India, Secretary General of Rajasthan Chamber of Commerce and Industry, KL Jain appreciated the move.

However, he said “We welcome the move of state government but in the same notification there is a clause stating ‘prevailing rules and regulation will follow’, which we want should be removed.

He said “The ordinance provides exemptions from approvals and inspections under any Rajasthan law but enterprises are required to follow the prevailing rules and regulations, which needs to be removed.”

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