A conference to deliberate on MSME Policies vis-a-vis the MSMED Act 2006 and related matters.
The current definition of Micro/Small/Medium Enterprise which is based on investment in plant and machinery vis-à-vis equipments is incapable to accommodate complex and competitive business operations, posing number of practical difficulties to the entrepreneurs while running the business, needs total reconsideration according to the COSIA Round Table which was held on 30th September 2013 at Thane, to deliberate on MSME Policies vis-à-vis the MSMED Act 2006 and the related matters. The Round Table was attended by various MSME Associations from the State of Maharashtra, Andhra Pradesh, etc.
The Round Table was chaired by Shri. M.R.Khambete the President of COSIA.
Shri. R.B. Gupte, the Director of MSME Development Institute, Mumbai, Govt. of India was the Chief Guest at the Round Table.
Speaking at the Round Table as the Key Speaker the Associate Editor of SME World Dr. Ipshita Basu Guha pointed out the very variance of the said definition in India itself. She brought to the notice of the Round Table that there are different definitions for different purposes like Taxation, FDI in Retail which nullifies the very definition under the MSMED Act. Citing many examples of differences from industry to industry, she said, the import of the definition from foreign countries will have no relevance in Indian circumstances and suggested to indigenize the definition in order to provide the true identity. At the end, she presented a model involving the MSME Associations at large to collect the needful information for the purpose of defining MSMEs in India and opined that we may have sector specific separate definitions. While summing up the subject she assured helping hand in the said endeavour for the cause of MSMEs.
Participating as another Key Speaker Shri. Rajesh Dubey, the Financial Expert & Designated Partner, SME Business Outsourcing &Training Solutions LLP ,Mumbai opined that the Micro requires more of risk capital and the Small requires more of working capital and the banks should provide such finance following the guidelines under Priority Sector Lending in letter and spirit.
Many suggestions as to the related issues like Procurement Policy, Credit Guarantee Scheme, Separate Minimum Wages Act for MSEs, some machinery like BIFR for sick small units, reconstruction of debts, Rate of interest under CGTMSE, reconsideration of NPA norms, Delayed Payment by the Governments, FDI in MSEs etc. were put by the delegates at the Round Table. As a Chief Guest, Shri. R.B. Gupte, Director, MSME Development Institute, Mumbai, Govt. of India, appealed the MSME Associations to be more responsive particularly to take the benefits of various schemes of the MSME Ministry which are designed to enhance the competitiveness of this sector.
At the end Shri. P.S. Agwan, Hon. General Secretary of COSIA proposed a vote of thanks.
30th September 2013
Tip-Top Plaza, Thane