PM to review MSME task force recommendations on Feb 5

Prime Minister Manmohan Singh is scheduled to review the recommendations of the MSME task force on February 5, Micro, Small and Medium Enterprises Minister of State (Independent Charge) Dinsha Patel said at the Indian Marketing Summit, jointly organised by Birla Institute of Management and Technology and Milagrow.

The minister said that an 11-member high-level task force , constituted by PM himself under the Chairmanship of the Principal Secretary to PM, T. K. A. Nair. Patel said, the report of the task force is based on recommendations submitted by seven sub-committees, which were constituted to look into the different aspects of the small and medium sectors.The micro, small and medium enterprises (MSME) task force, formed to suggest steps to help the sector brave the impact of global crisis. The task force is likely to press for easy bank funding, preferential treatment by public sector undertakings (PSUs) and benign tax regime for the sector. A Committee of Secretaries has also been looking into the issue of preferences for MSMEs in the PSUs. The small and medium enterprises have been demanding minimum 20 per cent reservation in the non-strategic PSU purchases. The MSME sector, which employs 42 million people, contributes about 45 per cent to India’s total manufactured output and close to 40 per cent to the country’s exports.

The task force was formed on September 15, 2009 and has given a three months time to draw up an agenda for action to consider various issues raised by the Micro, Small and Medium Enterprise (MSME) Associations. An eleven point agenda was highlighted by the representatives including to increase sub-limit to 6 percent from 4.9 percent, shortage of credit, need for a focused procurement policy, prompt payment of MSME dues, additional finances from SIDBI, simplification of labour laws to prevent inspector raj, formulation of a one-time settlement policy to strengthen the MSME industries and remove bottlenecks in their development.