The Hindu Business Line : `New Act to safeguard interests of SSIs'

The small industries development Act would safeguard the sector's interest, simplify the paperwork and give it representation on an apex consulting body enabling it to have its say in policy, according to Mr Jawhar Sircar, Additional Secretary and Development Commissioner, Small Scale Industries, Government of India.

Addressing an interactive session on the MSMED (Micro, Small and Medium Enterprises Development) Act 2006, organised by the Confederation of Indian Industry, he said that small-scale industries (SSIs) in India account for 97 per cent of the industries in the country, 75 per cent of its production, and gives employment to 85 per cent of the industrial working population.

Mr Sircar explained that the new Act would safeguard the interests of the small-scale industry.

It gives a clear definition of what constitutes a small enterprise - use of the word enterprise brings the service sector under the purview of the Act - and what constitutes a medium enterprise or a micro enterprise. It makes the process of registrations simpler for these SSIs, removing the two-step registration and replacing it with an optional filing of memoranda.

The Act also facilitates the functioning of an apex consulting body with representation of the stakeholders in SSIs, including members from Parliament, representatives of central ministers, State Governments, associations of MSMEs, and bodies such as the RBI and Nabard. The consulting body would examine factors affecting the promotion and development of MSMEs and review the Government policies, make recommendations, and advise the Government on the usage of funds in this area.

Also, the Act strengthens provisions related to delayed payment to SSIs. The period for delayed payment has been reduced from 120 days to 45, and the rate of interest on the outstanding amount increased to three times the prevailing bank rate of the RBI on a monthly basis.

Mr Sircar added that it has also been made mandatory for buyers to disclose the outstanding payments to MSME suppliers in their annual accounts.

More Stories on : SSI | Industrial Policy

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page