The present legal structure is provided in the
Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. The Act
addresses several concerns regarding development of micro small and medium
enterprises and, inter alia, provides for:
·
recognition of the concept of “enterprises”
(comprising both manufacturing and services) which are further classified into
micro, small and medium;
·
a statutory consultative mechanism at the national
level with wide representation of all sections of stakeholders, particularly
three classes of enterprises;
·
Preference in Government procurements to products
and services of the micro and small enterprises; and
·
more effective mechanisms for mitigating the
problems of delayed payments to micro and small enterprises.
As per
information received from States, no State has a separate law governing the
operations of the MSME enterprises sector specifically. The Central Government
has promulgated the MSMED Act, 2006 which applies to the whole country.
This information
was given by the Union Cabinet Minister for Micro, Small and Medium
Enterprises, Shri Virbhadra Singh in a written reply to a question in the Lok
Sabha today.
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RTS/HSN