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New MSME policy to be finalised in four months

Union Minister for MSME Kalraj Mishra today said the proposed new policy governing the industrial activity in the MSME sector would be “finalised in the next 3-4 months”.

Speaking at an MSME industry workshop here, he said the details of the new policy highlighted in the recent Budget speech, aimed at “redefining” the MSME sector activity, was being chalked out by a select committee formed with officials from the Reserve Bank of India, Ministry of Finance and the MSME ministry.

“The new MSME policy would primarily seek to redefine the sector in terms of annual turnover, capital employed and the labour engaged at the factory. It would also look into tweaking the RBI guidelines for treating non-performing assets (NPAs) in the MSME sector.We are examining the state-specific policies in place in various states to come out with an effective national MSME policy,” he added.

The proposed policy would also reaffirm the existing laid out mandatory procurement of MSME-originated products by the public sector units (PSU). According to the MSME ministry, the new policy will make it compulsory for PSUs to procure 20% of their need-based products from MSMEs, including four per cent from small industry units operated by women entrepreneurs.

On the Centre’s proposal to set up 15 tools rooms in the country, Mishra said the ministry had finalised locations for nine of these and was in the process of evaluating sites for the rest of them.

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