FISME Recommends Allowing Agriculture Land For MSMEs On Lease

ENA MSME 2025-01-06 18:01:22 Chandigarh, Jan 6 (KNN) Appearing before Parliamentary Standing Committee on Industry visiting Chandigarh, Vice President of Federation of Indian Micro and Small & Medium Enterprises (FISME) Rakesh Chhabra asked Members of Parliament cutting across various States to allow use of agriculture land for manufacturing to MSMEs on lease. The Department Related Parliamentary Committee was on a visit to Chandigarh and Srinagar and met representatives of a few major chambers and industry associations. FISME Vice President was highlighting how rising land prices had made manufacturing in small scale unviable in India. At the same time, farmers selling their agriculture land burnt their fingers as land sale proceeds get squandered quickly leaving farmers to penury. FISMEs proposal is to allow conversion of farm land for MSME manufacturing and be given for 25 years lease on agreed yearly rent. After the period is over, the land will be returned to the land owner. This will drastically bring down dead investment for MSMEs to start or expand business and will ensure steady income to small land owners while continuing land ownership, he said. To help MSMEs hire more workers on rolls, Rakesh Chhabra also suggested that in place of a plethora of social security laws, Govt may take a lump-sum amount of 10% of salary of per worker from each employer and distribute funds to various schemes on its own. MSMEs dither hiring workers on rolls because of substantial financial burden to the tune of 30-40% of salary bill and headache of managing compliances of ESI, PF, Gratuity etc. Let the government manage and distribute funds once collected from an MSMEs, he added. On being asked as about the reason of drop in PMEGP beneficiaries in Haryana, Rakesh Chhabra held two consecutive elections in the State as the prime reason because of which almost the entire state machinery was disrupted. The meetings of the Parliamentary Committee were facilitated by Ministry of MSME and KVIC. Besides, the state officials of Punjab and Haryana, the Committee met major Banks such as Punjab National Bank, UCO Bank, Bank of Baroda, Central Bank of India, Punjab & Sind Bank and Axis Bank. The Committee members also interacted with representatives of CPSUs including National Small Industries Corporation Limited, Hindustan Aeronautics Limited, Security Printing & Minting Corporation of India Limited, Central Warehousing Corporation, Indian Railway Finance Corporation Limited, NHPC Limited, REC Limited, Power Finance Corporation Limited, Hindustan Petroleum Corporation Limited and Engineers India Limited. Representatives of various Ministries of central government present were from M/o MSME, M/o Defence, M/o Finance, M/o Consumer Affairs, Food & Public Distribution, M/o Power and M/o Petroleum and Natural Gas among others. (KNN Bureau) 40535 https://knnindia.co.in/news/newsdetails/msme/fisme-recommends-allowing-agriculture-land-for-msmes-on-lease 2025-01-06 18:01:22 knnindia.co.in FISME Recommends Allowing Agriculture Land For MSMEs On Lease