The Government is making a concerted bid to ease norms for doing business in the Micro, Small and Medium Enterprises (MSME) sector.
The Ministry for Micro, Small and Medium Enterprises (MSME) plans to introduce a single page registration form and do away with the ‘prior experience’ clause under the Compulsory Public Procurement Order for the sector.
Moreover, a hike in investment limits has been proposed in plant and machinery.
Dr. Anup K. Pujari, Secretary, Ministry of MSME said, “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. A bill in this regard has been introduced in the Lok Sabha.”
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 various 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.
Dr. 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’.