Punjab Cabinet Approved Fast Track Policy for Setting up New MSMEs

In a bid to ease the approval process for the setting up of new Micro, Small and Medium Enterprises (MSMEs), the Punjab government has approved the Punjab Right to Business Rules, 2020.

The Punjab Right to Business Rules, 2020, have been drafted under the provisions of Punjab Right to Business Act, 2020, which was notified on February 6, 2020, after approval by the State Legislative Assembly on January 17, 2020.

The Punjab cabinet approved the Punjab Right to Business Rules, 2020, paving the way for setting up of MSME units on fast track across the state, an official statement said here on Monday.

The cabinet meeting, chaired by Chief Minister Amarinder Singh, gave the go ahead to the rules'' notification to ease the process of approval and clearances for setting up of MSME units, it added.

Sanctions and approvals pertaining to building plan, completion certificate, trade licence registration, land-use change, factory building plan (except for industries involving hazardous process), as well as registration of shops or establishments, will be granted by the district-level nodal agency, headed by the Deputy Commissioner.

For units being set up in approved Industrial Park, the certificate of in-principle approval would be issued within three working days after the submission of declaration of intent by the applicant.

For areas outside the Industrial Park, such certificates would be issued within 15 working days. The said certificate would be valid for a period of three and half years, and the concerned unit shall apply for regular approvals not later than three years on the Invest Punjab Business First portal from the date of issuance of certificate of in-principle approval, the statement said.

These rules would help MSMEs start building construction and commercial production early, said an official spokesperson, underlining the importance of enhancing ease of doing business and improving the business environment to spur growth and create jobs.

The cabinet took note of the crucial role played by the MSME sector in providing huge employment opportunities at comparatively lower capital cost.

In Punjab, many factories are engaged in manufacturing processes which are continuous in nature. Sometimes workers seek holidays as per the provisions of ‘The Punjab Industrial Establishment (National and Festival Holiday and Casual and Sick Leave) Act, 1965’, which leads to disturbance in the manufacturing process.

To overcome that, powers have been exercised under Section 13(2) of the said Act to exempt those industries from the provisions of this Act.