North East India MSME Meet, 2010

Theme of the meet was “Boosting Enterprising in North East India for Global Competitiveness,”

Hon’ble Prime Minister Dr. Manmohan Singh has announced a special policy namely “Look to East” for the speedy and sound economic development of the seven sisters and one brother in North East India. Commensurate with this policy a decision was taken to organize a North East India MSME Meet at Guwahati on 11th February 2010 with the full support of Ministry of MSME in the Govt. of India and in association with North Eastern Small Scale Industries Association. There was a special request of NESSIA to COSIA to organize such a one day Meet to explore more Business Opportunities for the MS Enterprises in North East India.

Participation

The North East India MSME Meet was attended by Entrepreneurs from the following States.

1. Arunachal Pradesh 2. Assam 3. Manipur 4. Meghalaya 5. Mizoram 6. Nagaland 7. Sikkim 8. Tripura

It was also attended by theCOSIA Members from the State of Maharashtra, Rajasthan, Karnataka and Gujarat.

[For the list of Delegates see Annexure IV]

Photo Gallery

Guidance of Officials and Experts

The Meet received guidance of the following officials and experts during the days deliberation.

A. From MSME Ministry :

1. Hon'ble Dinsha J. Patel, Minister of MSME, Govt. of India, New Delhi

2. Shri. Samarendra Sahu, Additional Development Commissioner, MSME, Govt. of India, New Delhi

3. Shri. S. K. Sahu, Director, MSME Development Institute, Guwahati

B. From Govt. of Assam :

1. Hon’ble Shri. Pradyut Bordoloi, Minister of Industries & Commerce, Power, Public Enterprises, Govt. of Assam,

2. Hon’ble Shri. Ravi Capoor, Commissioner and Secretary of Industry, Govt. of Assam

C. From Govt. of Tripura :

1. His Excellency Dr. D. Y. Patil, Governor of Tripura

D. From Govt. of Sikkim :

1. Shri K. S. Rai, Joint Secretary and General Manager, DIC (South), Government of Sikkim, Commerce and Industries Directorate.

E. Experts on Entrepreneurship and Industrial Development:

1. Shri. Vinod Tibrewala, Rajasthan and Mumbai

2. Shri. Tarit Guha, Thane

3. Shri. Ravindra Prabhudesai, Thane

4. Shri. K. D. Desai, Thane

5. Shri. Jairaj Pai, Mangaluru, Karnataka

F. Other Invitees :

1. Shri. Bhubaneshwar Kalita, Member of Rajyasabha,

2. Shri. S. S. Bakshee, Regional Manager, SIDBI

3. Shri. Das, Director - KVIC, Assam

G. Messages Received :

1. Hon’ble Shri. Gurudas Kamat, Minister of State for Communications & Information Technology, Govt. of India,

2. Hon’ble Shri. Jyotiraditya Scindia, Minister of State for Commerce & Industry, Govt. of India,

3. Hon’ble Km. Agatha K. Sangma,, Minister of State in the Ministry of Rural Development, Govt. of Meghalaya

4. Hon’ble Shri. S. C. Jamir, Ex. Governor of Maharashtra,

5. Hon’ble Shri. Dinesh Rai, Secretary, MSME, Govt. of India

H. KVIC Exhibition:

The KVIC office at Assam has organized an Exhibition of Textile, Handicrafts, Furniture and Articles of Presentation on the occasion of this Meet. It was inaugurated at the hands of Hon’ble Shri. Dinsha J. Patel, State Minister of MSME, Govt. of India, New Delhi.

Date & Venue

11th February 2010

Jubilee Hall, Sector 3, Officers Auditorium, Noonmati, I.O.C. Refinery, Guwahati (Assam).

Inaugural Session :

At the outset Shri. Mukul Ch. Barkataki, Working President of NESSIA and Shri. Sailen Baruah, State President- NESSIA welcomed the dignitaries on the Dais so also the delegates from the States of North East India and COSIA Members from other States.

Then the meet was inaugurated by lighting of the traditional lamp at the hands of Chief Guest Hon’ble Shri. Dinsha J. Patel, Minister of MSME, Govt. of India, New Delhi, and Guest of Honour Hon’ble Shri. Pradyut Bordoloi, Industry Minister, Govt. of Assam.

E-presentation :

Thereafter, Shri. P. S. Agwan, the Hon. General Secretary of COSIA made an e-presentation on the various issues of MSMEs which included the MSMED Act, Financial Assistance to MS Sector, Labour Reforms for MS Sector, Proposed Indirect Tax Reform - GST, Proposed Direct Tax Reform –Direct Taxes Code, Stimuli Packages, Economic Cooperation amongst MSMEs in India and the role of COSIA in this endeavour.

NESSIA Awards :

Thereafter, paramount NESSIA Awards were presented at the hands of Chief Guest Hon’ble Shri. Dinsha J. Patel, Minister of MSME, Govt. of India, New Delhi.

Speech of Special Guest :

Thereafter, Shri. Ravi Capoor, Industry Commissioner and Secretary, Govt. of Assam briefed the delegates about the Industrial Policy of Assam with specific reference to MSME and appeal to contribute to the industrial development of Assam in a big way.

Release of TISA Special Issue :

Thereafter, a special issue of TISA Magazine was released at the hands of Guest of Honour Shri. Pradyut Bordoloi , the Industry Minister of Assam. On this occasion COSIA Committee Member Shri. Jairaj Pai briefed the Meet about the very purpose of this issue and contents in it.

Address by Distinguished Guest:

Thereafter, Distinguished Guest Shri. Bhubaneshwar Kalita, Member of Rajyasabha while addressing the Meet emphasized the vitality of Micro and Small Enterprises in the development of an economy. Taking a review of important issues of this sector he suggested to have an inclusive approach to solve various issues. He assured the organizers his full cooperation for the cause of MSMEs.

COSIA Awards:

Thereafter, COSIA Awards were presented to 10 Entrepreneurs out of which three were women entrepreneurs, at the hands of Chief Guest Hon’ble Shri. Dinsha J. Patel, Minister of MSME, Govt. of India, New Delhi. [For details of the Awardees, place see the Annexure I]

Speech of COSIA President:

While complimenting and congratulating the efforts of MSME Ministry under the leadership of Hon’ble Dinsha J. Patel, to strengthen the MSMEs for Global Competitiveness, Shri. M. R. Khambete, President COSIA referred to the formation of COSIA Task Force for exploring of Business Opportunities amongst MSMEs. He also briefed the delegates about the future plans of COSIA to gain solidarity.

Address by Guest of Honour :

While addressing the delegates Hon’ble Pradyut Bordoloi, Industry Minister of Assam, took a stock of efforts of the Assam Govt. in particular for the promotion of MSMEs in the State. While pointing out some of the provisions under the policy ‘ Look to East’ he wished a speedy implementation by the Central Govt. He also referred to the some of the issues of MSMEs like Timely Finance and Infrastructure Facilities. At the end he congratulated COSIA & NESSIA for this Meet.

Address by Chief Guest :

While delivering the address as a Chief Guest Hon’ble Shri. Dinsha J. Patel appreciated the efforts of COSIA for the cause of MSMEs. He assured all the possible cooperation, assistance and guidance in these efforts.

Underlining the importance of the MSMEs, Hon’ble Minister pointed out that in the absence of exact statistics it becomes a bit difficult to frame and implement the various schemes. He brought to the notice of the Meet that 85% of the units in this sector are unregistered and urged upon COSIA & NESSIA and other MSME Associations to promote the movement of registration.

After briefing the august gathering about the various measures of his Ministry during last three years, the Chief Guest Hon’ble Shri. Dinsha J. Patel, informed the delegates in details about the meeting of MSME Associations in India with Hon’ble Prime Minister Dr. Manmohan Singh and the formation of Task Force on MSMEs. He assured the Meet about the implementation of the recommendations of Task Force in a phased manner.

At the end he congratulated, the recipients of COSIA& NESSIA Awards for their Excellent Performance in MSME Sector and also thanked COSIA for organizing the North East India MSME Meet to promote the cause of MSMEs.

At the instance of Chief Guest Hon’ble Shri. Dinsha J. Patel, the Additional Development Commissioner Shri. Samarendra Sahu briefed the gathering about the various measures of Ministry of MSME specifically developed for the North East India and its implementation process. He also assured the full cooperation in solving the problems of MSMEs in this region and elsewhere.

At the end Shri. Kumud Chandra Medhi, the State Secretary of NESSIA proposed a Vote of Thanks.

Post Lunch Session :

Subject – Business Opportunities and Technology ties-up amongst MSMEs

Chairman of the Session – Sri. Vinod Tibrewala, Vice President of COSIA

Co-Chairman of the Session – Sri. Tarit Guha, Chairman – MSMED Expert Committee, COSIA

Experts & Resource Person -

1. Sri. Ravindra Prabhudesai, MD, Pitambari Products Pvt. Ltd., Thane

2. Sri. K. D. Desai, Thane

At the outset Secretary General of COSIA Shri. Dilip Salvekar welcomed the delegates at the post lunch session. Thereafter, while initiating the Direction of this Session Shri. Vinod Tibrewala briefed the delegates about the importance of the Session. He drew the attention of the entrepreneurs towards the vast capacity of the Micro and Small Enterprises in its adaptability and competitiveness.

While interacting with the audience the Co-chairman of the session and Chairman of MSME Expert Committee of COSIA Shri. Tarit Guha stressed the need of exploring the Business Opportunities amongst ourselves instead of looking to the faces of foreigners for technology ties-up and business ventures. He cited examples of success of MSMEs in the packaging sector. He opined that the MSME Associations should come forward to explore such opportunities and if necessary provide all assistance to their Members. He assured, the cooperation of COSIA in this endeavour.

Speeches of Resource Persons :

Shri. Ravindra Prabhudesai, the Managing Director of Pitambari Products Pvt. Ltd., Thane and an expert in marketing made an e-presentation about the strategy of Marketing which proves to be beneficial to the MSMEs. He also referred to the process and possibilities of business ties-up by the Micro and Small Enterprises in North East India in producing as well as Marketing the various consumer’s goods under a brand name.

Shri. K. D. Desai, an expert in pharma sector briefed the delegates about the scope of pharma products and its export to the focus markets like South Africa. He also informed the participants about the qualitative and quantitative strength of Small as well as Medium Enterprises in this field. While referring to the quality aspects he assured about a special training to the entrepreneurs. He appealed the women entrepreneurs to come forward in this field.

After the speeches of resource persons Smt. Meghalee Bora of Meghalee Food Products [Jorhat, Assam] shared her experience in the production as well as marketing of food products. She requested a guidance from COSIA particularly in this field as there is an ample scope for food processing industries in Assam.

During the deliberations Shri. S. Rishikumar Singh - Manipur, Shri. Kumud Medhi - Assam, Prof. Baruah - Guwahati also supported the internal cooperation amongst MSMEs for the development of North East India. They were of the opinion that Banks like SIDBI and Institutions like KVIC should function more effectively and with accountability.

While summing up the post lunch session Chairman Shri. Vinod Tibrewala refereed to the rich business heritage of Assam and other States in North East India and called upon the entrepreneurs to take the challenge of economic development through MS Sector by heart. He referred to the guidance of experts and resource persons and opinioned that with the close cooperation amongst ourselves and exchange of ideas for business purposes will certainly change the present picture. He stressed the need of strong MSME Associations and their ties-up with COSIA for this purpose. He also referred to his experiment in educational field at Rajasthan and assured his best cooperation to the entrepreneurs who desires to step in this field. At the end he thanked all the participants, experts for their lively interaction and assured the cooperation of COSIA as and when needed.

Valedictory Session :

At the outset in concluding Session Secretary General Shri. Dilip Salvekar welcomed the audience. Then on behalf of COSIA & NESSIA. Hon’ble Dr. D. Y. Patil, the Governor of Tripura and Mrs. Patil were felicitated at the hands of COSIA President Shri. M. R. Khambete.

Thereafter, Shri. P. S. Agwan, Hon. General Secretary of COSIA while briefing the Chief Guest about the deliberations of the day presented various resolutions on following subjects.

A] Law Measures:

1. MSMED Act, 2006

1) Micro / Small Definition

2) Purchase Policy:

3) Separate Secretary & Development Commissioner for MS Sector in States

4) Payment to MSMEs by Govt.

5] Delayed Payment Provisions

2. Labour Laws

3. GST Implementation

4. Direct Taxes Code

B] Banking & Finance

1. Credit Link

2. Collateral

C] Continuation of Stimuli

D] Road Map for Exploring Business Opportunities amongst Ms Sector in India

There were no suggestions or amendments to these resolutions. These proposed resolutions were also seconded by the States Secretary of NESSIA Shri. Kumud Medhi and COSIA Committee Member Shri. Jairaj Pai. Thereafter, these resolutions were approved by the delegates. [For details of the resolutions kindly refer to Part C of the report]

Thereafter, Awards instituted by NESSIA for the excellent performance in Micro and Small Enterprise Sector were presented at the hands of His Excellency Dr. D. Y. Patil, the Governor of Tripura.

Thereafter, Shri. Sailen Baruah, State President of NESSIA, Shri. Kumud Medhi, State Secretary of NESSIA, Shri. K. D. Desai the Resource Person and Expert of COSIA and Shri. Ravindra Prabhudesai the Resource Person and Expert of COSIA were felicitated at the hands of His Excellency Dr. D. Y. Patil, the Governor of Tripura.

Thereafter, while addressing the delegates on this occasion COSIA President Shri. M. R. Khambete informed & promised about COSIA’s Initiatives to work with East and formation of a Task Force in this regard. He also mentioned about the future plan of COSIA for the Solidarity of MSMEs in India. At the end he expressed sincere thanks for the support of this Meet to NESSIA and Govt. of Assam and all others including His Excellency Dr. D. Y. Patil, the Governor of Tripura.

Thereafter, Mrs. Patil offered her blessings and good wishes to COSIA on this occasion.

At the end while delivering the Valedictory Address His Excellency Dr. D. Y. Patil, the Governor of Tripura congratulated COSIA for organizing this Meet and also wished a further process of economic development in a phased manner by all concern authorities.

Having referred to the importance of MSME Sector and vital role of it in the development, His Excellency Dr. D. Y. Patil, the Governor of Tripura shared his experiences in the field of education which according to him were also useful in running of the enterprises. Therefore, he stressed the need of training and knowledge in order to achieve the Global competitiveness and appealed to COSIA and NESSIA also too ensure fulfillment of it for the benefits of their members. He also assured the necessary cooperation for the cause of MSMEs.

Thereafter, Shri. Pravin Mistry, Branch Chairman of COSIA proposed Vote of Thanks and then Meet was ended with a National Anthem.

Resolutions approved in North East India MSME Meet

Honorary General Secretary of COSIA, Shri. P. S. Agwan in the Valedictory Session placed before the Meet following Resolutions which were approved unanimously.

A] LAW MEASURES

1. MSMED Act, 2006 :

1) Micro / Small Definition:

Resolved that while congratulating the Govt. of India for enacting MSMED Act, 2006 for MSMEs in India, there needs to be an amendment in the Definition of Micro so also Small Enterprise. Along with limit of Investment in Plant & Machinery, a TURNOVER LIMIT of Rs. 10 crs. for Micro and Rs. 50 crs. for a Small Enterprise in Manufacturing sector be added to prevent backdoor entry of Large Enterprises in the Micro and Small Sector.

2) Purchase Policy:

Resolved that it should be mandatory by Law itself for all the Depts., Corporations, Boards and Mandals of Central, States’ and Local-self Govt. Bodies to purchase minimum 25% of their requirement from the Micro and Small Enterprises only. The Micro and Small Enterprises be exempted from earnest money deposit. There should be 5% reservation for Women Entrepreneurs. The State and District Associations of Micro and Small Enterprises should be given representation on the committees formulating / amending purchase policies.

3) Separate Secretary & Development Commissioner for MS Sector in States:

Resolved that in every State there should be a separate Secretary as well as a Development Commissioner for Micro & Small Enterprises

4) Payment to MSMEs by Govt. :

All Micro and Small Enterprises are governed by MSMED Act, 2006 which stipulates the Credit Period [Payments to be made to Micro and Small Enterprises by others including Govt. and Public Sector] of ‘SIXTY DAYS’ only.

Resolved that Govt. and particularly Ministry of MSME should ensure that provisions relating to payment under MSMED Act, 2006 are strictly followed by all Govt. Departments and Public Sector Units including that of State Govts. and Local –self-governments.

5] Delayed Payment Provisions :

It is essential to provide more teeth to the provisions of Delayed Payment under MSMED Act, 2006 so that these are implemented effectively. It is understood that these provisions are being challenged in courts of law and there is a fear of defeat of the very purpose of MSMED Act due to such court matters. [The Madras High Court has ordered an Interim Stay on the Provisions in the Chapter V of MSMED Act, 2006. Also one matter is before Supreme Court of India pertaining to the Old Law namely Interest on Delayed Payment to Small Scale Industry, 1993]

Resolved that The Government should intervene in such cases so as to protect the interest of Micro and Small Enterprises.

2. Labour Laws :

Resolved that the recommended Law, namely “Small Enterprises (Employment Relations) Act” of Second National Commission on Labour, be enacted by the Govt. of India for the labour Reforms for MSME Sector, so as to ensure through its provisions-

1. Compliance of the said Act by way of self declaration by the CEO of MSME.

2. Unless there is a written complaint no Inspector should visit the premises of the entrepreneurs.

3. All forms to be filled and registered to be maintained be drastically simplified for ease of understanding & compliance.

4. The unit employing less than 50 workers should be exempted from the provisions of Labour Laws.

3. GST Implementation :

Resolved that in principle we welcome the proposal of Goods & Service Tax as it will be the only Indirect Tax at Centre. However experience of Cenvat at Centre and VAT at States is otherwise. Many indirect taxes are not merged with VAT and still the industries and citizens are paying all these taxes alongwith VAT resulting in heavy and complex taxation. For instance industries are still paying Central Sales Tax, Counter Veiling Duty, Special Additional Duty, Octroi, Cess etc. This has affected the competitiveness of micro and small industries.

Resolved that, There should be only and only one Indirect Tax and that can be GST. All other taxes must be merged with GST including Octroi and such levies.

Resolved further that even at the State level also there must be only one Indirect tax and the Union Govt. should ensure this aspect.

Resolved also that, All the Petroleum Products should be covered under GST.

4. Direct Taxes Code :

The forthcoming Direct Taxes Code is lacking the provision corresponding to the Delayed Payments in MSMED Act. Resolved that, a provision corresponding to the Delayed Payments in MSMED Act, 2006 is also inserted in the Direct Taxes Code.

The Limited Liability Partnership is a useful tool for Micro and Small Enterprises. However, the Income Tax Rate is the same that is applicable to general partnership.

Resolved that, The rate of income-tax for LLP should be 5% less than the rate applicable to general partnership.

B] BANKING & FINANCE

1. Credit Link :
Resolved that, lending bank should sanction a ‘CREDIT LINK’ instead of separate loans for each purpose comprising of two parts viz. term loan & working capital. This should be on a multiyear basis, with automatic revision of limit, proportionate to turnover.

2. Collateral :
Resolved that, no collateral be demanded by the Banks from Micro and Small Enterprises but loans be automatically covered under Credit Guarantee fund Scheme and the Rate of Interest be two percent below PLR.

C] CONTINUATION OF STIMULI

Resolved that, though the Industries are coming out of the pressure of recession, withdrawal of stimuli packages by the Govt. at this stage is not advisable. Therefore, these packages should be further continued atleast for two years.

D] ROAD MAP FOR EXPLORING BUSINESS OPPORTUNITIES AMONGST MS SECTOR IN INDIA

According to the Govt. survey, 90% of the enterprises in India are either Micro or Small contributing 8% to GDP and the largest sector, next to Agriculture, providing employment to more than 4 crs. persons. The total number of Micro and Small Enterprises is 2.1 crs.

A large number of Traditional / Informal / Formal / Natural / Modern Industrial clusters are seen functioning in every part of India. Similarly we have many Associations and Chambers of Micro and Small Industries Associations all over India Every such organization is playing useful role as per their strength and need and resources. One common factor and quality is found in each one of them that they are for the betterment of the industrial and economic progress of their area of operations and that is the binding force everywhere.

The term Economic Cooperation, though normally taken to mean cooperation and business at International level, can be exploited for exploring Business Opportunities amongst the entire Micro and Small Enterprises Sector in India which produces nearly 50% of the total production, in manufacturing sector. In an Open Economy and having a legal frame of Limited Liability Partnership Act, it is a high time for all the Associations and Chambers serving the cause of Micro and Small Enterprises should join hands together to Explore Business Opportunities amongst their MS Members in India. There are no disadvantages, but many advantages only, mainly – This Process and Mechanism will develop….

a) A continuous Dialogue amongst MS Enterprises resulting in exchange of ideas & close relations with each other spreading to the entire area of operations.

b) Frequent visits to each other to boost the business possibilities, joint-cooperation, joint-projects and collaborations.

c) Internal Outsourcing through clusters.

d) Technology Transfer to backward areas to bring them into main stream.

e) Possibilities of Group Marketing with the aid of Associations’ Exhibitions.

f) Better understanding to tackle any particular issue at various levels.

Most importantly this will automatically lead to unity of MSMEs in India for the Global Competitiveness.

Resolved that, the Proposed Road Map for this purpose can be as below.

1. Inviting Presidents and Secretaries as an “Invitee Members” on the Managing Committee of Associations.

2. Arranging pure Business Meets by the Associations at least once in a year.

3. Exchange of Magazines, Bulletins of the Association on complimentary basis.

4. Exchange of Business Delegations with each other.

5. More telephonic communication between the office-bearers, particularly secretaries, at least once in a month to know current affairs.

6. Reserving an appropriate space [say one page] in the Magazine / Bulletin of the Organization to publish internal trade enquiries, project enquiries and like matters.

7. Sending invitations of various functions and events to each other.

8. To appoint one Member to develop relations with other MSME Association as an Ambassador.

9. Exchange of study tours whenever possible & needed.

10. Updating about industrial scenario with each other by emails and other communication systems.

Resolutions for North East India Region

Following Resolutions were approved keeping in view the specific economic interest of the North East India Region.

Resolved that, the North East India MSME Meet congratulates the Govt. of India for declaring Special Package and Policy namely ‘ Look to East’ for the robust development of this region. However, due to lack of effective implementation the benefits of this policy are not percolating to the Micro and Small Enterprises which needs focus attention. Particularly the Transport subsidy, Tax Exemption and Financial Assistance to the Micro and Small Enterprises should be delivered in most simple, easy and transparent manner. Further Resolved that, the MSME Associations in North East India should be taken into confidence in the implementation process. Also Resolved that, periodic meeting with these associations may be held for the Review of the delivery of these concessions and incentives.

COSIA Task Force :

Resolved that, In order explore more and more business opportunities and thereby enhance the economic cooperation amongst the MSMEs in North East India and other parts of the country a COSIA Task Force may be constituted.

Resolved further that, this meet directs the President of COSIA to constitute the said Task Force in consultation with NESSIA and other Associations in North East India.

Recipients of COSIA Awards

COSIA Entrepreneurship Appreciation Award

Following Entrepreneurs received COSIA Entrepreneurship Appreciation Award for their excellent performance in MSME Sector in this Meet at the hands of Hon’ble Shri. Dinsha J. Patel, Minister of MSME, Govt. of India, New Delhi.

Name of the Person Name of the Company State Sector
Smt. Binny Yanga M/s. Oju Craft Centre Arunachal Pradesh Handloom and Handicraft Sector
Shri. Roni Lishi M/s. Roni Enterprises Arunachal Pradesh Construction of power house segment so also agribusiness services.
Miss. Rupjyoti Gogoi M/s. Jyoti Industries Assam, Packed drinking water industry
Shri. Ashok Roy Choudhury M/s. Roy Auto Engineering Works Assam General Engineering and Services
Shri. Thangjam Joykumar Singh M/s. Thangjam Agro Industries Manipur Food processing segment
Shri. Ibochou Singh Kshetrimayum M/s. Kshis Plastic Industry, Manipur Plastic Industries
Shri. Darasing Wary M/s. Cortech Furniture Meghalaya Furniture and home decors
Shri. E. W. Thabah M/s. Wood Work Furniture Meghalaya Furniture
Smt. Sonia Jamir M/s. Feather Touch Nagaland Food Products
Shri. Alienla Jamir M/s. Tain Readymade Nagaland Apparels line