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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)
GORAKHNATH BHASKAR PAWAR
GORAKHNATH BHASKAR PAWAR 2 years 2 weeks ago
The Finance Act 2023 inserted Section 43B(h), which stipulates that any sum owed to Micro and Small enterprises for goods supplied or services given may be deducted in the same year if it is paid within the deadline stipulated by the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006
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PARTHA CHAUDHURI
PARTHA CHAUDHURI 2 years 2 weeks ago
The Micro and Small Enterprises Facilitation Council should be an autonomous body set up under the MSMED Act. The Council will have a office in every State and will be authorized to open sub-offices in specific districts where MSMED Hubs exist. The Council should be enabled to initiate legal steps on behalf of the aggrieved MSMED unit before expiry of ninety days of arbitration and conciliation effort in case of non-payment within the scheduled period of forty-five days from the day of acceptance or the day of deemed acceptance. This will provide great relief to the MSMED unit to go on with production without sacrificing the time and expenditure of a court-case. Provision of this action by the powerful authority of the Council will also very much discourage big enterprises to enjoy virtual credit facilities at the cost of the MSMED units.
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KOTRA ADITYA
KOTRA ADITYA 2 years 2 weeks ago
Respected sir, these reforms are to be taken.Inclusion of cottage, village, and coir industries as rural artisans and craftspeople in the MSME classification scheme, to promote rural industries and enterprises. Strengthen provisions for technological upgradation and green technology to enhance productivity, quality, and competitiveness. Taxes for MSME are to be reduced. MSME are the backbone of our Indian economy their tax structure should be changed.
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Aurabinda Sil
Aurabinda Sil 2 years 2 weeks ago
WB CM is trying to trap Dr.CV Ananda Bose, Gov of WB for no fault. Dr. Bose is an innocent, scholar, wise, gentleman. But for his upright activities and criticizing TMC party for their corruption and criminal activities CM is angry and vindictive and trying to put him in jail. A woman Fish hook , constable has been engaged with huge money and facility to defame Dr. Bose and trap him as was in the case of Justice Ashok Ganguly. The woman fish hook is a damn liar who should be brought under legal proceedings and her identity should be disclosed as she has defamed Dr. Bose for no fault but to gain political mileage only. She is a TMC worker. We should stand behind Dr. Bose wholeheartedly. TMC is destroying WB altogether. Central intervention is needed. Trying to eradicate Hindutva and Hindus from India by establishing Islam religion and making India an Islamic state. Huge infiltration from Bangladesh made everyday. BSF failed. TMC can not be defeated as all muslim votes behind her.
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Aurabinda Sil
Aurabinda Sil 2 years 2 weeks ago
পুরুষ সুরক্ষা- আমাদের দেশে আইন আছে যে অত্যাচারিত , শ্লীলতাহানির শিকার মহিলার পরিচয় প্রকাশ করা যাবে না। ভারতীয় দন্ডবিধির ১৮৬০ ধারা ২২৮এ ( ভারতীয় ন্যায় সংহিতা ২০২৩ ধারা ৭২) অনুযায়ী কোনো অত্যাচারিত মহিলার পরিচয় প্রকাশ করা যাবে না। ঠিক আছে সেটা । সামাজিক সম্মান ও নিরাপত্তার কথা মাথায় রেখেই এই ধারা আনা হয়েছিল। এছাড়া সুপ্রীম কোর্ট এবং বম্বে হাই কোর্টের রায় অনুযায়ী এই পরিচয় প্রকাশ করা যায় না। কিন্তু ইদানীং আমরা কি দেখছি ! দেখছি যে রাজনীতির কারবারিদের হাতে পড়ে এই ধারাটার কি রকম অপপ্রয়োগ হচ্ছে। সুপ্রীম কোর্টের প্রাক্তন বিচারপতি , মানবাধিকার কমিশনের চেয়ারম্যান কে কিরকম হেনস্তা হতে হল, এবং পদ থেকে ইস্তফা পর্যন্ত্য দিতে হল। ওনাকে পদ থেকে সরানোই মুখ্য উদ্দশ্য ছিল । তারপর সেই উদ্দেশ্য পূরন হয়ে যেতেই কেস টা ধামা চাপা পড়ে গেল। মাননীয় প্রাক্তন বিচারপতির মানসম্মান ধূলোয় লুটিয়ে দিল রাজনীতির খেলুড়ের দল । কিন্তু সেই কুহকিনী যে পেছন থেকে কলকাঠি নড়েছিল রয়ে গেল অন্তরালে। বিনিময়ে কি পেয়েছিল সবাই আন্দাজ করতে পারেন। সেই রকম আর একটা কেস হল রাজ্যপাল ডঃ সিভি আনন্দ বোসের ক্ষেত্রে
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Manjari V Mahajan
Manjari V Mahajan 2 years 2 weeks ago
the MSMED Act, 2006 plays a crucial role in the development of MSMEs in India by providing them with various supportive measures and promoting their sustainable growth in the economy.
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Manjari V Mahajan
Manjari V Mahajan 2 years 2 weeks ago
The Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006 is an important legislation in India aimed at promoting and enhancing the competitiveness of micro, small, and medium enterprises (MSMEs).
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AnamikaTiwari
AnamikaTiwari 2 years 2 weeks ago
In my purview the changes which are suggested are good to have. In addition to it, the govt should also look for these points. They should set-up a threshold beyond which MSME has to covert themselves into a Company. Proper audit should be made part of it. Updated Definitions and Classifications: The definitions of micro, small, and medium enterprises should be periodically reviewed and updated to reflect inflation, economic changes, and the evolving business landscape. This ensures that the benefits and support intended for MSMEs reach the appropriate entities. Support for Technology Adoption: Providing incentives and support for technology adoption and digital transformation can help MSMEs improve efficiency, reach new markets, and stay competitive. This includes subsidies for digital tools, training programs, and access to e-commerce platforms. Dispute Resolution Mechanisms: Efficient and effective dispute resolution mechanisms.
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