Inter-Ministerial panel proposes easier entry, exit norms for SMEs

 

To counter current account deficit (CAD), manufacturing sector needs to be supported and so the Inter-Ministerial Committee (IMC) on manufacturing has proposes new easier rules for eatery and exit of the Micro, Small and Medium Enterprises (MSMEs).

"We are finalising our report on improving manufacturing in the Micro, Small and Medium Enterprises (MSMEs) sector which will soon be submitted to the Cabinet Secretary for his consideration," Secretary, Ministry of MSME, Madhav Lal told media after the MoU signing ceremony of NSIC and Mauritius's SMEDA in New Delhi on Monday.

The government had set up an Inter-Ministerial Committee (IMC), headed by Madhav Lal, Secretary, MSME, to address the issues of MSME sector and suggest ways to boost the manufacturing in the sector.

"The panel will submit its recommendations soon," said Lal.

Along with Chairman of Committee, Madhav Lal other members are Saurabh Chandra, Secretary, Department of Industrial Policy and Promotion (DIPP), Dr. M Sarangi, Secretary, Ministry of Labour, Rakesh Kacker, Secretary, Ministry of Food Processing Industries, Zohra Chatterji, Secretary, Ministry of Textiles. 

Currently it is very difficult for a SME to start a unit and even more difficult to exit from the same.

In the report, the panel is believed to have suggested simplification of rules for entry of small units along with creating an efficient framework for exit of sick units.

"We are looking at the entire issue from the perspective of the life cycle of MSMEs like what kind of assistance they require at the stage of the start-up and what is that they require for doing business or expanding it," Lal added.