Regular harassment punctures Ease of Doing Business claims: MSMEs

Representatives of small businesses raised issues related to disproportionate responses by government authorities for petty reasons, delay in payments by big buyers, delay in payment of incentives by government, ad hoc circulars resulting in blanket action against exporters, lack of road map in implementation of policies by the government and others that affect their day-to-day functioning. They said this during a seminar on Ease of Doing Business (EODB) in the city on Thursday. Sunil Parekh, co-chair of Gujarat State Council of Federation of Indian Chamber of Commerce and Industries (FICCI) expressed the necessity for further easing in obtaining land and construction permits as well as a single agency to inspect compliance of GST, PF, ESIC, Factory Act and Labour Act.

 

Rajkumar Beniwal, MD of Industrial Extension Bureau (iNDEXTB) asked businessmen to use Investor Facilitation Portal (IFP) through which close to 70 permissions pertaining to various departments are available. "First we are focussing on Ease of Starting Business. We are also focussing on Ease of Doing Business," he told DNA.

 

Arun Kumar Jagatramka, group chairman of Gujarat NRE led the assault, warning government officials that if practises of the government continue to be unfair, no young entrepreneur will remain in the country. "Excessive criminalization of corporate laws has created an environment of witch hunting where no businessman feels himself safe and is leading to mass exodus of future entrepreneurs out of the country," said Jagatramka. Khalid Khan, regional chairman – western region of Federation of Indian Exporters Organization (FIEO) said that a recent circular by Customs Department resulted in close to 600 containers coming to a grinding halt at Jawaharlal Nehru Port Trust (JNPT). Most of these belonged to commodity exporters from Gujarat. "It is unfair to take everyone to task, if a few businesses do not comply," said Khan.

Pointers: • A DICCI representative said that inspite of a provision of 70 per cent subsidy to Dalit entrepreneurs is not granted for 5 years now. • MSME commissioner Yogesh Nirgude said that Out of a budget of Rs 25 crore in one case, Rs 15 crore got lapsed as there were not sufficient claimants. • MSMEs complained that inspite of legal provision, buyers are not paying them within 45 days • Businesses said that they remain busy in meeting compliances and they are not able to focus on actual business • They complained that policies are framed but not implemented as rules and regulation are finalized • Petty notices in GST is causing harassment of businesses, even though the amount may be insignificant