Govt to amend 2006 Act to streamline disputes over delayed payments to MSMEs
- The Union Ministry of Micro, Small, and Medium Enterprises (MSME) is amending the MSME Development Act, 2006
Highlights:
- The Amendment is to improve mechanisms for managing disputes related to delayed payments and to better address the evolving needs of the MSME sector.
- The Act was brought in 2006, and times have changed. The nature of support needed has also undergone a vast difference.
- Similarly, when it comes to the National Board for MSME, it should have representation of all the secretaries from states because the industry has to connect with state governments at the ground level
- There is also a need to focus on micro enterprises in rural areas to improve quality of life and address unemployment.
- Additionally, the MSME ministry is in the process of transforming the Samadhaan portal, which currently only tracks disputes arising from delayed payments to micro and small enterprises (MSEs), into a comprehensive online resolution platform.
- At the event, the ministry also announced the Trade Enablement & Marketing (TEAM) initiative, which aims to onboard 5 lakh MSEs onto the Open Network for Digital Commerce (ONDC).
- The initiative, with an outlay of Rs 277 crore over the next three years, also seeks to assist MSEs with cataloguing, account management, logistics, and packaging material and design.
- The ministry also announced the Yashasvini campaign to spread awareness for formalising women-owned, informal micro enterprises, with a focus on tier-2 and tier-3 cities.
Prelims Takeaway
- MSMEs
- Samadhaan Portal