New U.P. MSME Act Will Support MSMEs' Growth – Navneet Sahgal

After 2 months of lockdown due to Covid-19 pandemic, Industry and Government both have realized that Industry and Businesses can not be silenced any more. Hence the industry and businesses have to function along with Covid-19 pandemic. Keeping this need in view, Indian Industries Association (IIA) have started preparing its members to face the challenge and combat the situation such that their industries and business run smoothly at the same time the employees are protected from the Corona infections.

However, starting the operations after two months of closure and lockdown not only in India but globally is not an easy task. The supply and demand chains are badly disrupted, workers have fled to their native places and are fearing to come back or are not able to get the means of transport to come back, liquidity has squeezed and the movements of raw materials & finished goods are restricted. In this extraordinary situation, extraordinary Government support is needed.

IIA, therefore, organized a Video Conference  attended by more than 450 Members from all over U.P with Shri Navneet Sahgal, I.A.S, Principal Secretary MSME & Export Promotion as Chief Guest on the subject “MSME Functioning in U.P along with Covid-19”

In his opening remarks, National President IIA Shri Pankaj Kumar said that vaccine for Corona Virus has not been found out as yet and we do not know how long it will take. As such by keeping the industries closed for more time will create bigger problems than the Covid-19 pandemic for the economy and the industry. He said that it is a matter of satisfaction that Government of India and Government of Uttar Pradesh under the dynamic leadership bare alive to the situation and taking appropriate steps to support the industry especially MSMEs.

By and large, the Government Departments in Uttar Pradesh baring few exceptions are also supportive including Department of MSME & Export Promotion and Labour Commissioner etc. Banks, however, are not implementing the RBI guidelines properly and the stimulus package announced by the Finance Minister also is yet to be implemented. Such delays and non-implementation of the policies are to be avoided at this crucial time.

Uttar Pradesh MSMEs' Perspective

Shri Kulmani Gupta, Chairman Noida Chapter of IIA, Shri Alok Agarwal, Chairman Kanpur Chapter of IIA and Shri Rajesh Bhatia, Divisional Chairman Varanasi presented the operational issues of Western, Central and Eastern U.P respectively before Mr Sahgal. Shri V.K.Agarwal, Past President of IIA spoke about the implementation of Purchase & Price Preference Policy of Uttar Pradesh notified by the Principal Secretary MSME & Export Promotion U.O recently. Shri Agarwal stressed that the policy of Make in India should be replicated in U.P for Make in U.P by purchasing 50 % requirement of the Government Departments & Undertakings from industries in U.P. Shri Sanjay Kaul  Past President IIA highlighted the importance of clearing delayed payments of Micro & Small enterprises by the purchasers in Government & Non-Government Sector.

He stressed that all tender documents of the Government Departments & Undertakings should contain the condition of making payment as per MSME-D Act 2006 within 45 days. In case of any default responsibility of the concerned officer should be fixed. The decisions of the MSE Facilitation Council for making payments of MSE’s are also not implemented timely and the process is too long. In case the decision of the Facilitation Council are not implemented by the purchasers, the recovery should be made as is done inland revenue act. Shri Manmohan Agarwal, General Secretary IIA  proposed IIA’s support provide employment to Migrant Labourers provided Government of U.P provides exact date and location of the labourers. He also proposed to form a Task Force comprising of IIA, Department of MSME, Department of Labour and Directorate of Industries U.P to work together for providing employment to the Migrant labourers. Shri Manmohan Agarwal also shared the issues of the Exporters in the State and said that ECGC Charges are too high to avail the facility.

After hearing the issues and suggestions made by IIA Office-bearers, Shri Navneet Sahgal responded positively and declared that Government of U.P is working to bring U.P MSME Act shortly wherein most of the issues and suggestions of IIA will stand addressed & resolved. Under this act for setting up new MSME in the state, no permission or approval will be required for the initial 1000 days of operation of the industry. The number of Foreign Companies are interested to handhold with Indian MSMEs and their proposals are with the Department of MSME U.P. These proposals will be shared with IIA for the benefit of its members. For easing out the process of delayed payments, MSE Facilitation Councils will be set up at every Division to be Chaired by respective Divisional Commissioners and the demand of IIA for recovery of awards granted by facilitation Council in line with land revenue recovery is being looked into seriously in the Government. Shri Sahgal assured IIA that the Purchase and Price Policy announced by his department will be implemented in letter and spirit and Chief Secretary U.P will be requested to write to all departmental heads for its implementation. On the proposal of IIA to co-operate/support the employment of Migrant labourers, Shri Sahgal said that soon an MOU will be signed between IIA and Govt of U.P to this effect in the presence of Hon’ble Chief Minister wherein we will strive to give employment to 5 lakh migrant labourers in U.P. Shri Sahgal assured all kinds of support of his department to IIA for resolving the issue and problems of MSMEs

Shri Ajay Gupta, Past president IIA expressed the vote of thanks in the end of the Conference.