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Discussion on Amendments in the MSMED Act 2006

Discussion on Amendments in the MSMED Act 2006
Start Date :
Jul 05, 2024
Last Date :
Aug 05, 2024
23:45 PM IST (GMT +5.30 Hrs)
Submission Closed

The Ministry of MSME is in the process of amending the MSMED Act, 2006. In this regard, this Ministry had consulted various central Ministries/Department/State Govt./Industry ...

The Ministry of MSME is in the process of amending the MSMED Act, 2006. In this regard, this Ministry had consulted various central Ministries/Department/State Govt./Industry Associations/other stakeholders & general public.

Based on the consultations and written inputs received from various stakeholders, the amendments proposed in the MSMED Act, 2006 are based on the following four key pillars:

A) Enhancing inclusivity and broad-basing the scope of the Act;
B) Future-proofing the Act;
C) Improving co-ordination under the Act;
D) Enhancing the ease of business in the ecosystem;

A) Enhancing Inclusivity and Broad-basing the scope of the Act
• Accord statutory status to Udyam registration for availing benefits under the Act.
• Provision for credit guarantee coverage to Micro and Small Enterprises by Government.
• Enabling provisions to address issues of credit gap; shortage of working capital; ensure adequate, affordable, and timely finance to enterprises; minimize the incidence of financial stress among enterprises; and leverage new and emerging platforms and technologies such as the Trade Receivables Discounting System, Account Aggregator Framework, etc.
• Provision for targeted mechanisms for capacity building of women, members of SC and ST, and rural artisans and craftspeople and provisions for market access, financial and digital literacy.
• Inclusion of cottage, village, and coir industries as rural artisans and craftspeople in the MSME classification scheme, to promote rural industries and enterprises.
• Inclusion of Medium Enterprises in the dispute resolution framework

B) Future-proofing the Act
• Strengthen provisions for technological upgradation and green technology to enhance productivity, quality, and competitiveness.
• Enabling provisions for the adoption of energy-efficient, sustainable technologies by MSME.
• Designation of a Green Fund to support the energy transition of MSME and integration in the global value chain.
• Addressing industrial obsolescence among enterprises.
• Promoting technological upgradation and research and development among enterprises.
• Encouraging the adoption of sustainable technology solutions by enterprises.

C) Improving coordination
• Streamline the structure, working, and functions of the National Board and the Advisory Committee to make them lean, efficient, and responsive to the requirements of MSME, and strengthen the monitoring and evaluation mechanism.
• Provision to set up an adequate number of Facilitation Councils in States for better access to MSMEs, along with an incentive structure to promote competition and good performance among them.
• The composition of the Facilitation Councils may be prescribed by the State Government.

D) Enhancing Ease of Business in the Ecosystem
• Provisions for the decriminalisation of offences by converting criminal fines into civil penalties.
• Simplification of regulatory clearance mechanism and procedure for establishment and management of MSME by making suitable provisions in the Rulemaking powers of the appropriate Government.
• Creating and encouraging the adoption of digital solutions to improve transparency and foster a culture of accountability
• Make the adjudication process simpler and speedier, aligning it with the alternative dispute resolution framework and online dispute redressal.

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Showing 768 Submission(s)
kunal kishore_11
kunal kishore 4 months 3 weeks ago

MSMED act is a future oriented goal of msme sector.some changes has been necessary for it.my view is to a policy has been framed according to region wise and sector wise.second point is to facilitate financial needs according to their need.third grass route level committee has been formed for inspect msme policy.fourth point is to a portal has been opened for registered all msme trader.

kunal kishore_11
kunal kishore 4 months 3 weeks ago

MSMED act is a revolutionary step for development of msme sector.sone changes has been necessary according to time.my view is to a clear and strong policy for development of msme sector.second point is to trained small trader for their business growth.third a national policy has been framed for bring unity among name trader.fourth skilled man power policy has been necessary for msme sector.

Muthuselvam Gugan
Muthuselvam Gugan 4 months 3 weeks ago

Cottage industries are mostly run by women self help groups.
Rural women are more involved in these sectors. Food products are sold at value added.Food quality laboratory fee should be charged slightly less by women self help groups. Small income is also important for women SHGs.
MSMEs should be allowed to borrow only from approved non-banking financial services institutions.Tribunals should function at district, regional, state and national levels. Settlements must be reached within 30 days of litigation.
CSC Centers should facilitate video appearances in Tribunals
Legislation should be modified based on the suggestions made in favor of MSMEs.
Government should encourage creation of cooperative & private mixed MSMEs like Farmer Production Organizations. CSC centers need to be developed as new MSME oriented services need to be provided through CSC centers.
Central government should provide one MSME training per month through district industries center in backward districts

swethakan3@gmail.com
Swetha Kannan 4 months 3 weeks ago

9. Our food items , especially organic food items we can give importance. Super foods like millets production , millets exports also we can give importance.
10. Similarly for rainy seasons we have to store the foods properly. We should know the monsoons , we have to careful or alert and save foods, products ourselves.

Vedprakash Mallick_1
Vedprakash Mallick 4 months 3 weeks ago

The proposed amendments to the MSMED Act, 2006, enhance inclusivity, future-proof the Act, improve coordination, and ease business operations for MSMEs. Granting statutory status to Udyam registration and addressing credit gaps through initiatives like TReDS ensures better finance access. Including women, SC/ST members, and rural artisans in programs like the Coir Udyami Yojana highlights social equity. Future-proofing measures, such as the Green Fund for sustainable practices and the Technology Centres System Programme (TCSP) for tech support, align with global trends.

Improving coordination with more Facilitation Councils, seen in Maharashtra and Tamil Nadu, enhances support and dispute resolution. Simplifying regulations, decriminalizing offences, and adopting digital solutions like the Government e-Marketplace (GeM) portal foster transparency and efficiency. These amendments aim to create a resilient, dynamic MSME ecosystem, driving India's economic growth and competitiveness.

Muthuselvam Gugan
Muthuselvam Gugan 4 months 4 weeks ago

Entrepreneurship is easy to achieve when resources are close at hand.
But it is a challenge if resources are far from industrialization. The backward districts of the country are mostly agricultural.
There is a need to start MSMEs to increase employment in resource-poor areas. It would be good if the government encouraged companies to start businesses in areas where opportunities are limited.
We should take Japan as an example in this matter. There are few resources but their hard work brought their country to the top of the world.
Don't fail to encourage MSMEs who choose industries that are not feasible in their area.
Apart from agriculture, under-resourced districts can be encouraged to choose a product or service to develop related industries. It is well known that one product per district.
It has to be achieved with the possible object. Encouraging entrepreneurship in challenging products is what really needs to be achieved.