E-Paper
UP to bring changes in MSME Act to generate more jobs
NOIDA:
NOIDA:
As the Covid-19 lockdown has severely affected the micro, small and medium enterprises in Uttar Pradesh, the state government has planned to amend its MSME Act, 2006, which will give the required push to the sector, officials said on Sunday.
The proposed policy will help create more employment in the sector and attract foreign investment, the officials said, adding that the new amendment is about easing the norms for entrepreneurs.
Navneet Sehgal, UP secretary of MSME and export promotion department, said since this sector plays a pivotal role in the economic development of the state, the government is paying considerable attention to the growth of industries by creating necessary infrastructure to ensure sustained industrialization in the state.
“In order to attract foreign investment on the lines of small countries like Taiwan and Thailand, we are planning to create more competitive environment for our entrepreneurs here. To generate more employment along with ensuring rights for workers, setting up more MSME units is the need of the hour. We are planning changes in the MSME Act, under which the new units will not need to take any permission or no objection certificates at the time of their establishment. These new enterprises will get all their essential papers automatically in the last 100 days of their 1,000 days of establishment,” he said.
Sehgal further said that the proposed rule will put a big positive impact on the MSME sector. “It will not only give MSME units the required push to recover the huge economic loss caused due to the Covid-19 lockdown, but will also ensure the growth rate of 12% per annum for the sector. It will also double the export from the state in the next five years. It is also going to benefit the ‘one district one product’ (ODOP) programme,” he said.
The entrepreneurs associated with the sector of apparel, Gautam Budh Nagar’s ODOP, are very optimistic about the government’s vision to bring back the industry on track.
Lalit Thukral, president of Noida Apparel Export Cluster (NAEC), said that since the garment industry is the second highest employment provider after the agriculture in the state, it will create millions of jobs. “With apparel as ODOP, Noida alone provides employment to approximately 20 lakh people. Majority of our workers, who are weavers and have returned home in other districts due to Covid-19 crisis, will certainly be reconnected to the textile industry to make UP a hub of weaving and textile mills. Also, by setting up industries nearer to villages, the government will boost confidence of the entrepreneurs,” he said.
Thukral also said that the provision of single window system in the proposed Act will ensure qualitative development of the MSME sector in the state. “It is like reviving the old glory of the state, by providing jobs to each pair of hands,” he said.
