MSME Minister Narayan Rane will hold a meeting with industry associations and experts from the MSME sector on April 27 in New Delhi to discuss the upcoming MSME policy and issues pertaining to credit, marketing, technology, skill development, cluster development, and more, according to the draft agenda for the meeting by the ministry. Top industry bodies including FICCI, CII, Ph.D. Chamber of Commerce and Industry, Assocham, FISME, FIEO, IEEMA, and multiple state-level chambers and industry associations have been invited to the meeting organized by the MSME Ministry at Vigyan Bhawan, according to the email sent by the MSME ministry on March 29, 2022. A copy of the email was seen by Financial Express Online.
“The meeting was preponed from April 28. At present, inputs have been invited from associations to discuss topics other than the ones listed in the draft agenda. MSME policy is one of the points of discussion. The final agenda will be shared soon with the associations,” a government official told Financial Express Online.
Apart from the draft MSME policy, the topics listed for discussion in the draft note were delayed payment cases with MSE Facilitation Councils, change in MSME definition, likely issues related to registration on the Udyam portal, difficulties in availing collateral-free loans, rating of MSMEs, loan restructuring issues, technology development, and R&D activities in the sector, skill development for MSMEs to improve competencies, and more.
“We have suggested a discussion on the Insolvency and Bankruptcy Code (IBC) as well since the recovery process is not in favor of MSMEs that are classified as operational creditors and hence, they get nothing in case their buyers undergo corporate insolvency resolution process (CIRP). MSMEs’ dues should be cleared on a priority basis,” said an industry association member on anonymity to Financial Express Online.
“We have also sought medium enterprises to be separated from the MSME sector as their challenges and issues, such as the ability to raise a bank loan, are largely different from micro and small units. They should be clubbed with the Commerce and Industry ministry and there should be a separate policy to help micro business to graduate to small and grow further,” he added.
The meeting has been called over two months after the ministry had released the draft document of the upcoming MSME policy in February this year. The document had focused on promoting competitiveness among MSMEs, technology up-gradation, cluster and infrastructure development, procurement of MSME products, and dedicated credit support.
MSME Minister Rane assumed charge of the MSME Ministry on July 8, 2021. Over the past 10 months, the minister had launched multiple initiatives for MSMEs including the SAMARTH program to boose women’s entrepreneurship, MSME Innovative Scheme for enhancing incubation, design, and patent ecosystem for MSMEs, the entrepreneurship awareness program SAMBHAV, and Credit Linked Capital Subsidy Scheme for the services sector.
Attribution-The Financial Express
