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LATEST NEWS UPDATES | MPs want package for micro, small and medium enterprises

MPs want package for micro, small and medium enterprises

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published Published on Dec 20, 2011   modified Modified on Dec 20, 2011

-PTI

 

A strong demand was made in the Lok Sabha today for a package for the micro, small and medium enterprises, which are facing problem on account of the economic slowdown.

Members from different parties made the demand while participating in a discussion on the Regulation of Factors (Assignment of Receivables) Bill, 2011.

Shailendra Kumar (SP) demanded that Government should set up a special fund to help the MSME sector.

Gorakhnath Pandey (BSP) said that MSME sector, which employs lakhs of people, is suffering on the account of economic slowdown and there is a need to provide subsidy to such units.

The bill, which was introduced by Finance Minister Pranab Mukherjee during budget session, seeks to address delays in payment and liquidity problems of micro and small enterprises, and empower the Reserve Bank to regulate factor business in the country.

Udai Singh (BJP) said more money should be provided to state governments to promote MSMEs and that way India can match with China in the sector.

The bill, among other things, seeks to provide for and regulate the assignment of receivables by making provision for registration and rights and obligations of parties.

Factors provide liquidity to small and medium enterprises against their receivables from customers and is regarded as a cash management tool.


The Economic Times, 20 December, 2011, http://economictimes.indiatimes.com/news/economy/policy/mps-want-package-for-micro-small-and-medium-enterprises/articleshow/11182340.cms


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