After getting nod for setting up information technology enabled services (ITES) units in Phase 1 and 2 of the Industrial Area, Industries Association of Chandigarh (IAC) has demanded implementation of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006.
The IAC has been demanding implementation of the MSMED Act since past few years. This act is helpful for traders as it allows a wider array of activities on industrial plots besides manufacturing and that too without paying any fee for it.
In the MSMED Act, the word ‘industry’ has been replaced by ‘enterprises’, in which services along with manufacturing are allowed. Services activities under the act include sale of motor vehicles, retail and sale in non-specialised stores with food, retail sale via stalls and markets, hotels and motels, stores and motion picture projections. Before the act came into being in 2006, only manufacturing was allowed in the industries.
Association president Arun Mahajan said the administration should implement the act at earliest as it would help in reviving the industrial area.
In March, the administration had given approval for ITES. Those interested in star ting ITES units would have to take permission from the UT estate office. As per the order:
“ITES of service nature, specific application shall be submitted for permission to estate office.” The administration has also asked the UT deputy commissioner to drop the misuse notices, which has been issued because of these activities being carried out in the the Industrial Area in place other manufacturing activities.