New MSME Policy in 3-4 Months: Kalraj Mishra | SupportBiz


New MSME Policy in 3-4 Months: Kalraj Mishra

Representatives of Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI), Federation of Telengana Small and Medium Industries Assocation (FTSMIA) , Association of Lady Entrepreneurs of Andhra Pradesh (ALEAP) and Confederation of Women Entrepreneurs (COWE) and other industry bodies interacted with the minister.

Hyderabad: Government is working to bring out a new policy for the Micro Small and Medium Enterprise (MSME) sector in three to four months as a committee with officials from Ministries of Finance, MSME and RBI has been formed to chalk out issues to be included in the new policy, MSME Minister Kalraj Mishra informed on Tuesday.

"This committee will address all issues relating to the sector," Mishra said while talking to reporters on the sidelines of an interaction session with entrepreneurs organized by the Council of Small and Medium manufacturing Industry in Hyderabad.

The panel will chalk out a comprehensive policy after studying the policies of other countries and also the policies of various states within the country. Mishra said the policy would also revise the definition of an MSME in tune with the changing business environment.

The new definition will revisit the current levels of capital investment required to be made by various stakeholders and the number of employees for a unit to qualify as a MSME. This will also widen the access of these enterprises to bank finances.

On the problems faced by MSME units in getting bank finances, the minister said he had called for a meeting with top bankers next week to discuss the issue. Mishra also revealed that the government will soon launch an online system of MSME registration.

This will help entrepreneurs to register as MSME enterprises online, instead of getting certificates from different government departments. "I am aware the difficulties faced by entrepreneurs in getting registered as a MSME unit at present. We want to simplify the procedure by making the entire registration process online," he said.

Mishra said it would be mandatory from next year for the public sector undertakings to source 20 percent of goods or services though MSME sector including four percent from SMEs run by women and scheduled castes/scheduled tribes (SC/STs). They urged him to look into the issue of of skill development and R&D in the sector and also the severe electricity shortage faced by the industry in Telangana.