Comments on Small Enterprises Development Bill 2002 submitted to the Ministry of SSI and ARI Government of India by the Indian Industries Association.

(A)             GENERAL COMMENTS

IIA welcome the initiative of Ministry of SSI&ARI, Govt. of India in drafting this bill for the development of Small Enterprises. Number of provisions contained in this draft bill gives only the broad guidelines. Few examples are:  Section 3, Section 4, subsection 4 of Section 5 , Sub section 1 &5 of Section 10. These Sections/ subsections are required to be made more specific with clear definitions/classifications/functions/ formats etc.

We welcome all the Modifications proposed in various Acts in Schedule four, however much more is required to be done to make these Act really helpful to the employees as well as to the employers of small enterprises. Lot of simplifications and modifications are required to be incorporated. IIA is submitting few recommendations separately at Appendix ‘A’.

IIA recommends that there should be one comprehensive Act for SSI’s and the Acts as modified in column three of Schedule Four should form an integral part of this comprehensive Act. Meaning thereby, there should not be a separate Factory Act & Payment of Wages Act and so on..
(B)             SPECIFIC COMMENTS

Reference from Small Enterprise Development Bill - 2002

 Comments of Indian Industries Association

Section 2(e)

“Small Enterprises” means any undertaking, which  satisfies such criteria and requirements as, may be notified by the Central Government under subsection(1) of section 3.

Clause(e) of Section 2 requires modification as under:-

“Small enterprise: means any undertaking, which satisfy such criteria and requirements as, may be notified by the Central Government under subsection (1) and (2)of section-4.

Section 2(g)

“State Purchaser” shall mean and include the Central Government or State/UT Government or local bodies.

Clause (g) of Section 2 may be modified as under:

“State Purchaser” shall mean and include the Central Government, State/UT Governments or local bodies and all the departments / Corporations / Undertakings / Societies / Institutions etc. under the administrative control of the Central Government and State /UT Government.

Section-9

Appointment of Registering Authorities.

The State/UT Government shall, by notification, designate one or more officers of the State/UT Government as the Registering Authority with such territorial jurisdiction as may specified in the said notification for the purposes of this Act.

Section-9 may be amended as under:-

The State/UT Government, by notification, designate one or more officers of the State/UT Government or Industry Associations as the Registering Authority with such territorial Jurisdiction as may be specified in the said notification for the purpose of this Act. The Industry Associations Shall however be provided necessary legislative support and shall be experimented in such territorial Jurisdictions as may be specified in the said notification. This experiment if found successful, the State/UT Government may extend registration facility through Industry Associations in other territories through notification from time to time.

Sub-Section 2 of Section-10

Provisional Registration

On receipt of an application under subsection (1) the Registering Authority shall, if it is satisfied that the applicant satisfies the conditions necessary to be classified as a small enterprise in accordance with the provisions of Chapter II, within fifteen working days, issue a provisional registration certificate in such form as may be prescribed:

 

For issuing a provisional registration, 15 days time is too long. Once the guidelines are set and made clear to the applicant, the Registration Authority should accept / reject the application across the table. If accepted, the Provisional Registration certificate should  be issued on the same day and if rejected the reasons be recorded in writing with a copy to the applicant.

Sub. Section-3 of Section –10

Provided that if the Registering Authority is of the opinion that the applicant does not satisfy the requirements specified under Section 4 he shall, within the said period, for reasons to be recorded in writing reject the application:

Provided further that where the application is not disposed of within the said period of fifteen days, the applicant may file an application to the Director of Industries who shall grant provisional registration forthwith and shall be issued a certificate accordingly.

Sub-section-3 may be modified as under:-

If the applicant is not satisfied with the grounds on which the application is rejected, he may file an appeal to the Director of Industries who shall grant provisional registration or if the applicant does not satisfy the requirements as per his considered view he shall reject the application with reasons recorded and communicated in writing to the applicant within 15 days of receipt of his appeal.
 

Home Page

Next Page