The Government is making a concerted bid to ease norms for doing business for Micro, Small and Medium Enterprises (MSME) sector by seeking to redefine MSMEs through a hike in investment limits in plant and machinery, introduce a single page registration form and doing away with the ‘prior experience’ clause under the Compulsory Public Procurement Order for such units.
This was stated here on Friday by Anup K Pujari, <g data-gr-id="29">Secretary ,</g> Ministry of MSME, in the, ‘Make in India: MSME Perspective’ event.
Pujari said a Bill to enhance the investment limits for micro, small and medium enterprises has been introduced in the Lok Sabha. The investment limits in plant and machinery for the micro enterprises is proposed to be raised to Rs 50 lakh, of small enterprise to Rs 10 crore and medium enterprise to Rs 30 crore. The existing limit are Rs 25 lakh, Rs 5 and Rs 10 crore respectively.
The proposed amendment to the MSMED Act comes in the wake of changes in price index and cost of inputs consistent with the emerging role of the MSMEs in <g data-gr-id="32">various</g> global value chain. The Ministry is also set to introduce a one-page form for registration of MSMEs to reduce paperwork and eliminate ambiguous wordage in the registration form. Pujari said that the Ministry has been persistently trying to advise the Central and State Governments not to expect ‘prior experience’ in procurement from start-ups. Procurement agencies could well ask such enterprises to provide warranties on their products which were longer than those with ‘prior experience’.
The Secretary said that MSMEs, on their part, should communicate to the Ministry in crisp, unambiguous language to elicit precise responses. The inaugural address by Kalraj Mishra, Union MSME Minister was transmitted to the delegates through a video recording.
Mishra said that the difficulties faced by MSMEs in carrying out their business and the way these could be addressed should be communicated to the Ministry post the Summit and assured full support for their redressal.