Jaipur: MSMEs in Rajasthan will now be exempted from prior approvals and inspections under Central Factories and Boilers Act with the department concerned notifying the reforms as part of the process to enhance the ease of doing business.
The notification has expanded the scope of the MSME Act which earlier was restricted to approvals and permissions provided by the state government.
Provisions in the MSME Act gives power to state government departments to exempt any enterprise from any approval or inspection under any Central Act, if the Central Act allows state government to exercise such powers. Subodh Agarwal, additional chief secretary, industries, said “We are trying to get all the state regulatory departments to work on their rule making powers under Central Acts to exempt MSMEs. This is the first success and we expect, more approvals and permissions under central laws will be covered.”
The exemptions include registration, renewal and inspection of boilers for three years from the date of the issue of valid acknowledgement certificate. Moreover, there will be exemption from approval and inspection for repair and maintenance of boilers for the same period, the government notification said.
Meanwhile, the number of companies given go ahead with an acknowledgement certificate to start their projects under the MSME Act have crossed the 2,000 mark. The state government, for the first-time in the country, notified the Act on May 24 allowing entrepreneurs to start their projects without any approval till three years which can be extended by another six months. Of the 2,066 entities given nod, 36.8% are in the manufacturing sector, while 63.94% come from services sector. Micro enterprises constitute 35.91% of the 2,066 companies while small and medium segment units have 39.93% and 24.15% share. Jaipur has most number of companies at 376, followed by Alwar (2010), Jodhpur (167), Udaipur (105), Ajmer (88%), and Nagaur (88%).
Over the last few months, many states, including the Central government, have taken interest in the reforms innovation of the MSME Act for improving ease of doing business in their respective states and in the country.
Published On : 17-10-2019
Source : Times of India
