Punjab frames rules to extend legal framework to MSMEs

Chandigarh, Sep 17 (SocialNews.XYZ) 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 effective mechanism to mitigate the problem of delayed payments to such enterprises.

The Cabinet, chaired by Chief Minister Amarinder Singh, on Friday okayed the Punjab Micro and Small Enterprises Facilitation Councils Rules of 2021 under the Micro Small and Medium Enterprises Development Act to facilitate promotion, development, and competitiveness of MSMEs.

A spokesperson for the Chief Minister's Office said 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 wide representation of all sections of stakeholders and a wide range of advisory functions.

One of the silent features of Act is that it provides an effective mechanism for mitigating the problems of delayed payments of micro and small enterprises.

All district-level micro and small enterprises facilitation councils established under the chairmanship of respective Deputy Commissioners would ensure proper implementation of the aforesaid rules to ensure development of MSMEs in the state, and to resolve the issues of delayed payments effectively for betterment of micro and small entrepreneurs.

Source: IANS