Wednesday, October 08, 2014: The Central Government has proposed to introduce a new policy within next 30 days for the micro, small and medium enterprise (MSME) sector in Chennai. The sector till now didn’t had any policy of its own, it was instead governed by the Industrial policy in force.
Kalraj Mishra, the union minister for MSMEs stated that the new policy would simplify the general procedures and the procurement procedures and said that all the clearance for setting up micro and small businesses would be settled online within the fixed period of fifteen days.
In Arun Jaitley’s budget speech he mentioned about the plans for “redefine” MSME sector activity and stated that the new policy is being formulated by the officials from the Reserve Bank of India (RBI), ministry of finance and the MSME ministry.
The new policy would also facilitate in making the registration of MSMEs simpler. It further even looks for redefining the MSME sector in terms of annual turnover, capital employed and labour engaged at the factory and would further help in changing RBI’s guidelines for treating non-performing assets in the MSME sector.
The ministry called for a meeting of 80 associations in New Delhi and asked for their valuable suggestions for the new policy. As per the Ministry, the new policy would make it mandatory for PSUs to acquire 20 per cent of their required products from MSMEs, four per cent from the small industry units operated by women entrepreneurs.
As per the current norm, anyone who wants to set up new enterprise needs to obtain ‘no objection certificates’ (NOCs)’ from different departments. The ministry would now put in place the entire mechanism to simplify the NOCs obtaining process and would ensure the time-bound delivery of the same.
