The Hindu Business Line : Representation for State-level bodies in SME Board urged

THE Kerala State Small Industries Association has suggested amendments to the proposed Small and Medium Enterprises Development Bill - 2005 for inclusion of representatives of State-level associations in the National Small and Medium Enterprises Board so as to give due representations to different zones in the country.

Suggesting amendments and modifications to the Bill to be presented in Parliament for legislation, KSSIA pointed out that giving due representation of State-level bodies would definitely give importance to spread the image of the Board geographically.

The Chairperson of the Board should make a comprehensive report on the development of small enterprises annually and present to both houses of Parliament.

As `small enterprises' itself is not conclusively defined in the Bill, the Association proposed to have unified and clear definitions for wages, factory, manufacturing, industry, industries undertaking, Mr Xavier Thomas Kondody, State President of KSSIA, said. It has suggested that the advisory committee should get two nominees representing SME associations in the country, he added.

Referring to registration of small enterprises, he said that the heading should be amended to `Registration and Performance Appraisal of Small Enterprises'. The registering authority should maintain proper statistical records on the small enterprises for which the State Commissioner should notify its requirements once in two years.

The Association also pointed out that there should be measures for promotion, development and enhancement of competitiveness of small and medium enterprises.

The option to make a rule for measures for promotion and development should not be given to State Governments and law should be enacted by the Central Government for a uniform application of law throughout the country.

For trade protection, the Association suggested incorporation of a clause permitting registered consortium of small industries.

The Association also urged the Speaker of the Parliament to take a decision by prohibiting any financing institution in the case of SME financing activity from accepting a small stretch of 10 cents of land and a residential house of the entrepreneur in it as a collateral security or mortgage.

In the event of a default also, such minimum assets should be excluded from revenue recovery acts. This novel enactment will boost up SME investment to unprecedented level in the country.

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