There is an immediate need to revise the MSME Development Act, 2006, especially the definition of Micro, Small and Medium Enterprises (MSME).

There has been a huge inflation since 2006 and there is an urgent need to revise the definition based on current inflation rates.

This was one of the key recommendations made by the Confederation of Indian Industry to the Centre for an accelerated growth of the MSME sector.

TT Ashok, Chairman of CII’s National SME Council, along with other MSME members, presented the recommendations to Union MSME Minister Kalraj Mishra, says a CII release.

With the enactment of the Public Procurement Policy in 2012, there should be a monitoring system to check the implementation of this policy to safeguard interests of the SMEs.

There is a need for State Specific Public Procurement Policy to help SMEs since there are a large number of State-owned public sector units with whom they can do very good business, said the recommendation.

The CII has sought extension of NPA recognition period by banks from 90 days to 120 days with an additional 30 days as grace period for the SME sector.

They also said there is an urgent need to simplify compliance and inspection policy, under the Labour Act governing the MSMEs.

CII has also recommended 25 per cent allotment of land in the Industrial corridors, estates and parks promoted by the Centre, for MSMEs. This will help them get access to infrastructural facilities like access to R&D centres, logistics hub and business centres, the release said.

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