The Punjab Cabinet, led by Punjab Chief Minister Captain Amarinder Singh, on Friday approved the Punjab Micro and Small Enterprises Facilitation Councils Rules, 2021 under the Micro Small and Medium Enterprises Development (MSMED) Act, 2006, to facilitate promotion, development and competitiveness of MSMEs.
The Micro, Small and Medium Enterprises (MSMEs) in Punjab have got a major impetus with the state cabinet approving rules to provide a well-formulated legal framework for their operations, with an effective mechanism to mitigate the problem of delayed payments to such enterprises.
According to a spokesperson of the Chief Minister's Office, these rules provide the first-ever legal framework for recognition of the concept of "enterprise" (comprising both manufacturing and services) and integrating the three tiers of these enterprises, namely Micro, Small and Medium.
"Apart from clearer and more progressive classification of each category of enterprises, particularly the small ones, the Act provides for a statutory consultative mechanism at the national level, with a wide representation of all sections of stakeholders and with a wide range of advisory functions. One of the silent features of the Act is that it provides an effective mechanism for mitigating the problems of delayed payments of micro and small enterprises," the statement issued by the official of CMO.
According to the Punjab Cabinet, all district level Micro and Small Enterprises Facilitation Councils established under the chairmanship of respective Deputy Commissioners across the State would ensure proper implementation of the aforesaid rules to ensure the development of MSMEs in the State, and to resolve the issues of delayed payments effectively for the betterment of Micro and Small Entrepreneurs under the Micro, Small and Medium Enterprises Development Act, 2006.
"Notably, the respective Deputy Commissioner of these districts shall exercise the powers of the Director, Industries and Commerce, and shall be the Chairperson of the Council with Lead District Bank Manager of the concerned District as Members, besides two members from the association of micro or small Industry or enterprises in the state MSMEs as non-official members. The General Manager of District Industries Centre would be the Member Secretary," stated in the release.
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor