Centre urged to amend MSME Act

A joint representation of Micro, Small and Medium Enterprises (MSME) on Monday have urged District Collector to recommend to the Union Minister for MSME to impart suitable corrections in certain clauses of the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2018.

The petition submitted by the Coimbatore Compressor Industries Association, Coimbatore Sidco Industrial Estate Manufacturers’ Welfare Association, Coimbatore Wet Grinder Manufacturers’ Association and Laghu Udyog Bharati, Coimbatore, said that they are apprehensive that even big traders engaged in selling imported products can get them registered as a micro or small enterprise in the GST-era.

While the MSME Act is to facilitate the promotion of indigenous micro and small units engaged in manufacturing, there is no differentiation on manufacturer or trader in the GST-era. Hence, the petitioners wanted inclusion of a clear-cut clause in the Bill to bar traders to get registered as micro or small units.

According to them, the amendment empowers the Government to raise turnover limit to define a MSME up to ₹ 225 crore. They wanted the Central Government to remove the clause regarding turnover limit increase from the Bill.

They said that the amendment Bill has no mention whether the enterprises have to approach the District Industries Centre every year to get classified or re-classified as their turnover are subjected to increase or decrease. Such situation will not facilitate ease of doing business.

According to the petitioners, concessions for micro and small units are being withdrawn one after another and duty/tax exemptions have already been abolished. They said that sector is losing its competitiveness after GST implementation while large scale enterprises, corporates and multi-national companies are benefited. They added that Bill is also to benefit the large scale traders and companies.

Demand from all party representatives

An all-party representatives from Karumathampatti town panchayat submitted a petition to District Collector on Monday seeking various amenities and developments in their locality. Their demands included street lights on Powerhouse corner Somanur – K. Rayarpalayam road, bypass from Somanur parallel to Noyyal river, renovation of Somanur bus stand, desilting of all tanks in Karumathampatti and repair of check dam across Noyyal near Somanur among others. The petitioners also sought Tasmac outlets to prevent sale of illicit liquor which is rampant at Somanur.

Alternative road sought

Residents from Saramedu on Monday submitted a petition against the service road for Ukkadam-Athupalam bypass planned through their residential area. The petition submitted to District Collector said that more than 100 families are residing in the area will have to be relocated for laying service road. They sought authorities to plan for an alternative road skipping the residential area.