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Punjab cabinet approves fast-track clearance of MSMEs

To ease the regulatory burden on micro, small and medium enterprises and fast-tracking setting up of MSMEs, the Punjab cabinet, here on Monday, approved the Punjab Right to Business Rules, 2020.

The new rules have been drafted under provisions of the Punjab Right to Business Act, which was notified on February 6, 2020, after the Assembly’s approval on January 17.

The cabinet meeting, chaired by Chief Minister Amarinder Singh, gave the go-ahead to the rules’ notification to ease the process of approval and clearances for setting up of MSME units.

Sanctions and approvals pertaining to building plan, completion certificate, trade license registration, land-use change, factory building plan (except for industries involving hazardous process), as well as registration of shops or establishments, will be granted by the district-level nodal agency, headed by the Deputy Commissioner.

For setting up of units in the approved industrial parks, the certificate of in-principle approval would be issued within three working days after the submission of the declaration of intent, a government statement said.

For other areas, such certificates would be issued within 15 working days, it added. The certificate would be valid for three and a half years.

These rules would help MSMEs start building construction and commercial production early, said an official spokesperson, underlining the importance of enhancing the ease of doing business and improving the business environment to spur growth and create jobs.

The cabinet took note of the role played by the MSME sector in providing jobs at comparatively lower capital costs. The MSMEs also helped in the industrialisation of rural and backward areas, thereby reducing regional imbalances, the cabinet noted.

In Punjab, many factories are engaged in manufacturing processes that are continuous in nature. When workers seek holidays as per the Punjab Industrial Establishment (National and Festival Holiday and Casual and Sick Leave) Act, 1965, it leads to disturbance in the manufacturing process.

To overcome that, powers have been exercised under Section 13(2) of the said Act to exempt those industries from the provisions of this Act.

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