STATE LEVEL ADVISORY BOARD MEETING 2017-18msmedimumbai.gov.in/html/slabbook2017.pdf · List of...

STATE LEVEL ADVISORY BOARD MEETING 2017-18

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क्रमसूची

INDEX

SL विषय / TOPIC पषृ्ठ क्रम ांक

PAGE NUMBER

1 एसएलएबी का उदे्दश्य 03

Objectives of SLAB

2 विकास आयुक्त (नयी विल्ली) द्वारा सुझाए गए सिस्यों की सूची

04-07 List of Suggested Members as per DC(MSME) New Delhi

3 SLAB 2017-18 के वलए एजेंडा

08-09 AGENDA POINTS FOR SLAB 2017-18

4 SLAB 2017-18 के विनट

10-19 MINUTES OF SLAB 2016-17

5 SLAB २०१७-१८ - काररिाई की गई ररपयटर

20-21 ACTION TAKEN REPORT - SLAB 2016-17

6 ANNEXURES | अनुबोंध 22-41

सािावयक सुविधा क्रें द्यों से प्राप्त ररप्रजेंटेशन

REPRESENTATIONS RECEIVED FROM CFCS

कयवसया ठाणे द्वारा प्राप्त अजेंडा

POINTS BY : COSIA, THANE

इोंवडयन िचंट्स चमे्बसर द्वारा प्राप्त अजेंडा

POINTS BY : INDIAN MERCHANTS CHAMBER

अकयल इोंडस्ट्र ीज असयवसएशन द्वारा प्राप्त अजेंडा

POINTS BY : AKOLA INDUSTRIES ASSOCIATION

ऑल इोंवडया असयवसएशन ऑफ इोंडस्ट्र ीज द्वारा प्राप्त अजेंडा

POINTS BY : ALL INDIA ASSOCIATION OF INDUSTRIES


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राज्यस्तरीय सलाहकार बोर्डों का गठन (SLABs)

Constitution of State Level Advisory Boards (SLABs)

एसएलएबी का उदे्दश्य

Objectives of SLAB

1) सोंबोंवधत राज्यों िें सूक्ष्म, लघु और िध्यि उद्यियों के विकास के वलए वजमे्मिार विविन्न

एजेंवसययों के बीच सिन्वय सुवनवित करना।

To ensure coordination between different agencies responsible for the

development of Micro, Small and Medium enterprises in the respective

States.

2) सूक्ष्म, लघु और िध्यि के्षत्र से सोंबोंवधत िुद्दयों पर, विशेष रूप से राज् के विषययों के सोंबोंवधत

सिी िुद्दयों पर सलाह िेना तथा वजला उद्ययग कें द्, एि्.एस.एि्.ई-डी.आय और एि्.एस.एि्.ई

विकास सोंगठन अवधवनस्ठ विविन्न प्रचारक वनकाय और स्वायत्त वनकाय के कािकाज पर

सलाह िेना और राज् खािी विकास बयडर के कािकाज तथा विविन्न कें द् सरकार की

ययजनओों के कायारन्वयन पर सलाह िेना.

To advise on all issues concerning the Micro, Small & Medium Sector,

especially State related matters, including functioning of DICs, MSME-DIs

and various promotional and autonomous bodies under the control of

MSME Development Organization, functioning of State KVIB,

implementation of various central schemes such as PMEGP, NPRI,

Monitoring credit sector flow etc


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Constitution of State Level Advisory Board for Maharashtra (SLAB) attached to Micro, Small and Medium Enterprises

MEMBERS / INVITEES

Sr

No

As per guidelines of O/o

Development

Commissioner (MSME) ,

New Delhi

Designation Members / Invitees

1 Secretary dealing with

Micro, Small & Medium

Enterprises Department of

the State/UT concerned

Chairman The Principal Secretary (Inds),

Government of Maharashtra

2 The Commissioner/

Director of Industries of the

state

Vice-Chairman The Development Commissioner(Inds)

Govt of Maharashtra

3 Director/Deputy Director

I/cx of the concerned

State/UT

Member Secretary The Director,

MSME – Development Institute,

Saki Naka, Kurla Andheri Road,

Mumbai – 400 072

4 Members of Offices

Reporting to the

Development

Commissioner(MSME),

New Delhi / Ministry of

MSME

Director / Dy.Director

I/c of other MSME-

Dis/Independent

Branch MSME-Dis if

any, in the State

The Director,

MSME-Development Institute,

Ministry of MSME, Govt. of India,

CGO Complex, Block “C”, Seminary Hills,

Nagpur – 440 006.

--do-- The Dy. Director I/C.,

Br. MSME-Development Institute,

32/33, MIDC Area, Chikalthana,

Aurangabad – 431 210.

Director, MSME-TC in

the region concerned

The Director,

MSME – Testing Centre

MSME-DI Campus,

Sakinaka, Kurla Andheri Road,

Mumbai – 400 072.

IDEMI The Managing Director,

Institute for Design of Electrical

Measuring Instruments (IDEMI),

Swatantryaveer Tatya Tope Marg,

Chunabhatti, Sion,

Mumbai – 400 022

IGTR The Managing Director,

Indo German Tool Room,

P-31, M.I.D.C. Industrial Area,

Chikalthana, Aurangabad


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A REPRESENTATIVE EACH FROM THE FOLLOWING BODIES

5 KVIC Member The Director,

State Office, Khadi & Village

Industries Commission,

Royal Insurance Building,

14, Jamshedji Tata Road,

Mumbai – 400 020.

6 Regional Manager, NSIC Member The Regional General Manager,

NSIC Ltd.,

Mumbai – 400 008.

7 SLBC of the State Member The Convenor, SLBC,

Bank of Maharashtra,

Shivajinagar, Pune – 411 005

8 State Financial Corporation

in the State

Member Director,

MSFC Mumbai

Fort, Mumbai

9 State Small Industries

Development Corporation

Member The Regional Manager,

Maharashtra Small Scale Industries

Development Corporation Ltd.,

Ballard Estate, Mumbai

10 Prominent Industrial

Undertaking in the Public

Sector in the State / UT

Member General Manager (Procurement)

HPCL,

Mumbai

Member Chief Material Manager

Western Railway,

Mumbai

11 Other State Govt Agencies

& Corporations having

connection with MSME

Development.

Member The CEO,

Maharashtra Industrial Development

Corporation,

Andheri (E), Mumbai.

12 A Representative of

National Productivity

Council in the State / UT.

Member The Director,

National Productivity Council,

Grant Road, Mumbai

13 A representative of the

Federation of Associations

of Micro, Small & Medium

Enterprises of India

Member The President,

COSIA

Thane

14 Representative of CII Member The Regional Director,

Confederation of Indian Industry,

Mumbai

15 Representative of FICCI Member The Head – Maharashtra State Council,

Federation of Indian Chambers of

Commerce & Industry (FICCI)

Worli, Mumbai

16 Local representatives, if

any, of associations,

members of National Board

for Micro, Small & Medium

Enterprises

Member 1.The President

Dalit Indian Chamber of Commerce &

Industry (DICCI),

Pune – 411 001.


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Member 2. National President,

All India MSME Associations, Mumbai

17 a) Association of Women

Entrepreneurs (if any)


Aamhi Udyogini Prathishtan

Mumbai 400028

18 b) Development

Corporation of State (if

it exists)

Member The Chairman,

Mahila Arthik Vikas Mahamandal

Mumbai

19 Representative of State

Level SC/ST

Corporation/Women’s

Corporation / Minorities

Corporation


Mahatma Phule Backward Class


Juhu, Mumbai

20 Backward classes

representatives (for State

Level Corporation if it

exists)


Lokshahir Annabhau Sathe


B-22, Kalyani Kendra, Ashokvan,

Hanuman Tekdi, Borivali East,

Mumbai.

21 Representative of

Science & Technology

Entrepreneur Park

(Promoted by Deptt of

Science & Technology), if

any in the State

Member Director, Society for Innovation and

Entrepreneurship

Indian Institute of Technology-

Bombay,

Powai, Mumbai

22 One Member from the

University, Deptt. Of

Economics/Management

in each state.


Department of Economics,

University of Mumbai,

Mumbai.


Level Consumer Forum


Mumbai Grahak Panchayat,

Vile Parle (West), Mumbai.

24 President, State Level

Association of Micro,

Small & Medium

Enterprises


Chamber of Small Industry

Associations,

Thane.

25 Reserve Bank of India &

Small Industries

Development Bank of India

Member The R.D./ General Manager,

Financial Inclusion & Development

Department,

Reserve Bank of India,

Mumbai.

Member The General Manager,

Small Industries Development Bank of

India,

Andheri (E), Mumbai.

26 State Chamber of

Commerce & Industries

wherever in existence.

Member The Secretary General,

Maharashtra Chamber of Commerce,

Industry & Agriculture (MACCIA),

Fort, Mumbai


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Level EDI/CED if any in the

State

Member The Executive Director,

Maharashtra Centre for

Entrepreneurship Development.

Aurangabad


Level Ancillary Industries

Association


Bombay Small Scale Industries

Association,

Andheri (East), Mumbai

29 State Electricity Board Member The Managing Director,

Maharashtra State Electricity

Distribution Co.,

Bandra (East), Mumbai

1 Representative of DGFT

2 President, AIAI, Mumbai

3 President, MASSIA, Aurangabad

4 Director General, India SME Forum,

Mumbai

5 President, Vidharbha Industries

Association, Nagpur

6 President, Akola Industries

Association, Akola

7 President, IMC Chamber of

Commerce & Industry, Mumbai

8 President, Indian Chamber for

Affirmative Action, Mumbai


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राज्यस्तरीय सलाहगार बोर्ड की बठैक – २०१७-१८ STATE LEVEL ADVISORY BOARD MEETING – 2017-18

DATE : 09.08.2017

स्थान : विकास आयुक्त (उद्ययग), िहाराष्ट्र राज्, का कायारलय, िुोंबई

VENUE : Conference Hall, O/o.DC(Inds.) New Administrative Bldg.,Mumbai

विषय सूची

AGENDA POINTS

SL AGENDA POINT / ISSUE

1.0 विनाोंक २६.०९.२०१६ कय आययवजत सै्लब िीवटोंग के विनट की पुवष्ट् करना

Confirmation of Minutes of SLAB Meeting held on 26.09.2016

2.0 वपछले बैठक िें वकए गए फैसले पर की गई काररिाई का सोंवक्षप्त वििरण

Brief of Action Taken Report on decisions taken in the last meeting.

3.0 एिएसएिई विकास सोंस्थान एिों एि.एस.एि.ई िोंत्रालय के अवधनस्त कायारलययों के विषय

Points by : MSME-DI and other offices of M/o MSME

3.1 358 िसु्तओों के अनारक्षण पर इोंडस्ट्र ीज असयवसएशन द्वारा वटप्पवणयााँ

Comments on dereservation of 358 items by Industry Associations

3.2 नकली / भ्रािक सोंस्थानयों द्वारा एि.एस.एि.ई िोंत्रालय के नाि का िुरुपययग

Fake / Misleading institutions using name of M/o. MSME.

3.3 सी.एफ.सी सिस्ॉ कय विि्युत डू्यटी िे छूट

Waiver of Electricity Duty to CFC Members

3.4 कॉयर बयडर द्वारा पे्रझेंटेशन तथा एिएसएिई िे िू िस्त्र के बारे िे जानकारी.

Presentation by Coir Board & use of Geo Textiles in MSMEs.

प्रधान सवचि(उद्ययग), िहाराष्ट्र सरकार से अपेवक्षत सिथरन के बारे िें.

Support expected from Principal Secretary(Inds) & Govt. of Maharashtra

4.0 चेंबर ऑफ स्मॉल इंर्डस्ट्री असोवसएशन के मुदे्द

Points by : Chamber of Small Industry Associations

एि.आय.डी.सी. सोंबोंवधत िुदे्द

MIDC related issues

व्यापार करना आसान करने के सोंबोंवधत सुझाि

Suggestions relating to Ease of Doing Business

िहाराष्ट्र राज् अविनि और स्ट्ाटरअप नीवत पर सुझाि

Suggestions on Maharashtra State Innovation and Startup Policy

Other issues

अन्य िुदे्द

5.0 इंवर्डयन मचंट्स चेंबर द्वारा प्रात मुदे्द

Points by : Indian Merchant Chamber

5.1 आयएिसी द्वारा गवठत एडीआर सेल के वनिारण की जानकारी

Information on Formation of IMC International ADR Centre (IIAC) –

Arrangements for Arbitration.


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6.0 अकोला इंर्डस्ट्रीज असोवसएशन के मुदे्द

Points by : Akola Industries Association

लेबर सेस िसला

Labour Cess Issue

नए व्यिसाय के वलए विि्युत आपूवतर

Electricity Supply to new business

एि.आय.डी.सी िें विि्यूत एल.टी ियारिा २०० एच.पी.तक बढाने के बारे िें.

Raising LT Consumers limit to 200 HP in MIDC

एि.आय.डी.सी. सोंबोंवधत िुदे्द

MIDC related issues

औद्ययवगक िूवि / उद्ययग कय हस्ताोंतररत करते सिय तैयार रेकॉिर के अनुसार स्ट्ाम्प डू्यटी

पर शुल्क नही ों लगाने का प्रस्ताि

Proposal not to charge stamp duty as per ready reckoner while transferring

industrial Land /Industry

अकयला से खोंडिा रेल िागर - ब्रॉड गेज िें रूपाोंतरण

Akola to Khandwa Rail route - conversion to Broad gauge

अकयला हिाई अडे्ड के रनिे की लोंबाई बढाना

Increasing the length of runway of Akola Airport

नगर वनगि की वजला ययजना एिों विकास सविवत िें एआईए का प्रवतवनवधत्व

Representation of AIA in District Planning & Development Committee of

Municipal Corporation

7.0 ऑल इंवर्डया असोवसएशन ऑफ इंर्डस्ट्रीज द्वारा प्राप्त मुदे्द

Points by : All India Association of Industries (AIAI)

के्रवर्डट संबंधी मुदे्द - सोंपवत्त के खखलाफ ऋण, ब्याज िरयों कय कि करना, सीजीटीएिएसई,

सियसीिा / के्रवडट की पयारप्त उपलब्धता

Credit related issues – loan against property, Lowering Interest rates,

CGTMSE, Timely /Adequate Availability of Credit

ग्लयबल स्ट्ेंडड्रस कय अपनाने के बारे िें

Adoption of Global Standards

वबिार उद्ययगयों क तु्रवटपूणर डेटा

Erroneous Sickness Data


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MINUTES OF STATE LEVEL ADVISORY BOARD MEETING HELD ON 27.09.2017

Minutes of State Level Advisory Board Meeting held under the Chairmanship of

Shri Vijay Singhal, IAS, Development Commissioner (Inds), Govt. of Maharashtra,

on 27.09.2016 at MSME-DI, Mumbai

1. The meeting started with initial welcome and introduction. The list of

members and invitees present is at Annexure-1. 2. Agenda wise proceedings are as follows: 1.0 Minutes of the last meeting held on 05.09.2015 were placed for

confirmation. The Member Secretary / Director, MSME-DI, Mumbai

informed that the duly approved minutes were circulated to all members

and invitees and also uploaded on the Institute’s website immediately after

the meeting. There were no comments from member s / invitees. The

minutes were confirmed. 2.0 The Chairman reviewed the Action Taken Report submitted by

the Member Secretary/Director, MSME-DI, Mumbai and advised Members

/ Invitees to contact him in case of any difficulty in certain issues

mentioned in the Action Taken Report. The representative of CII submitted

that CII is going to organize special seminar in November 2016 which

was to be organized as discussed in the last meeting. 3.0 MSME-DI, Mumbai and other offices of M/o.MSME.

Director, MSME-DI, Mumbai briefed about recent initiatives taken by

O/o.DC(MSME) New Delhi, for the benefit of MSMEs. The initiatives such as

Udyog Aadhaar, MSME Databank, MyMSME App, ZED Certification Scheme

and National SC / ST Hub were specially brought to the notice of the

House. The Chairman advised all the Members and Invitees to communicate

these initiatives to their members and all concerned. He was very keen

about the MSME Databank and emphasized its importance with respect to

creation of authentic database of MSME Units.

The Representative of SIDBI mentioned initiatives

taken under Stand Up India. The details are available on the website of SIDBI.

4.0 Points by All India MSME Association. 4.1 Compulsory Registration of all MSMEs.

In response, the Chairman mentioned that the MSME Databank would serve

the purpose. He further advised representatives of all Associations to

communicate their members the information of Udyog Aadhaar and MSME

Databank. The Member Secretary/Director MSME-DI, Mumbai informed

that as per the directives, Government benefits will be given to the units

which have entries in MSME Data Bank


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4.2 Definition as per International Laws: Definition as per international norms :

The point is coming under the purview of National Board for MSMEs and

AIMSMEA is the member of National Board. He was advised to take up the

issue in the National Board.

5.0 Points by Maharashtra Chamber of Commerce Industries & Agriculture (MACCIA) 5.1 Formation of New Corporation in line with existing corporation in UP,

Gujarat viz. Laghu Udyog Nigam.

The Chairman asked the purpose of formation of the Nigam. The

representatives of MACCIA submitted that the Nigam has some powers to

look into the problems of MSME units. The Chairman advised Member

Secretary to get details of Laghu Udyog Nigam formed in the states like UP

and Gujarat.

Meantime, Chairman mentioned that a dedicated cell is under

consideration of Govt. of Maharashtra for capacity building, skill

upgradation, short courses and other useful services for MSMEs. 5.2 Funding Scheme for Working Capital for MSMEs

It was advised to give a write-up by MACCIA in the matter. 5.3 Issue of Sickness Certificate to MSMEs.

The Chairman wanted a detailed write-up from MACCIA regarding the issue. 5.4 Restarting of State Finance Corporation (MSFC).

The Chairman informed that action has been already initiated in the

matter. He further informed that MD, MSSIDC is holding the charge of

MD, MSFC. MD, MSSIDC, was also present in the meeting. 5.5 Rescheduling & Rehabilitation of NPA Units:

In response, Director, MSME-DI, Mumbai submitted that Ministry of MSME,

has given instructions through RBI to all Banks about the Framework for

Revival and Rehabilitation of MSME Units. It was also brought to the notice

that all Banks have to form a Committee wherein Director, MSME-DI, will be

a Member and stressed accounts will be identified for remedial measures by

the Banks before the accounts becoming NPA. 5.6 Interest Subsidy for Importing Machinery:

A detailed note is to be submitted by MACCIA, for forwarding it to DGFT. 5.7 Manpower Placements – Recruitment Industry. 5.8 VAT on unmanufactured tobacco sold in small packets.


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For Point No.5.7 & 5.8, the Chairman advised to study impact of GST. He

further advised to prepare a representation for forwarding it to concerned

Departments, if necessary. 5.9 Problems of Textile Industry

The Representative of Ministry of Textiles, mentioned the Schemes like

Yarn Bank, Cluster Scheme & other measures for the benefit of Textile

Industry. The Textile Ministry is planning to conduct Seminars in the State

at different locations for dissemination of information. 5.10 Issues related to procedural delays at MIDC

The main issues were about Labour Cess, Advance Taxes levied before

Building Completion, Stamp Duty, Absence of circulation of guidelines at

district level etc. MACCIA Members wanted a separate meeting with the CEO,

MIDC which was agreed upon by the Chairman. It was also advised that

MACCIA may write a letter to the CEO, MIDC through the Chairman for

getting an appointment and discussing issues in his presence. 5.11 Issues pertaining to MSEDL

The issues could not be taken up due to absence of Representatives from

MSEDL. The Chairman advised to get write-up for forwarding the same to

the concerned department and further advised to ensure their presence in

the next meeting. 5.12 Participation of existing coal beneficiation plants installed by private

companies in Special e-auction of coal.

The Chairman advised to take up the matter with Ministry of Coal though

him. A detailed note is expected from MACCIA. 5.13 Problems of Industries in Sangamner Industrial Estate.

The issues were common and related to MIDC. It would be covered in 5.10. 5.14 Taxation Issues of Small & Medium Scale Industries

Impact of GST is yet to be studied. However, in case of any specific

problem, the Association can approach Chairman with detailed note. 6.0 Point by: Ahmednagar Auto & Engineering Association (AAEA), Ahmednagar 6.1 Energy Tariff Issue of Ahmednagar Auto & Engg Association.

The Representative from Ahmednagar Auto & Engineering Association

(AAEA), Ahmednagar were not present in the Meeting. The Director, MSME-

DI, Mumbai / Member Secretary explained that there are Common Facility

Centers being set up under MSE-CDP Scheme of DC (MSME) New Delhi.

The common facility centers are for MSME Units. He has received

representations from AAEA and other Cluster Members that CFCs are being

charged electricity tariff as per commercial rates, wherein they claim that

they should be charged as per industrial rates. The issue was further


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supported by MACCIA and Technical Advisor, MIDC. The Chairman

appeared convinced about the submission and informed that he would take

up the matter with the concerned department.

7.0 Points by: Bombay Small Scale Industries Association (BSSIA), Mumbai. 7.1 Issue of Professional Tax:

The President, Bombay Small Scale Industries Association (BSSIA)

submitted that the Professional Tax should be on the basis of Income Slab.

The Chairman desired detailed note for taking up the issue with the

Department of Finance. 7.2 Proposal to arrange SLAB on Quarterly Basis:

Member Secretary/Director, MSME-DI, Mumbai submitted that the SLAB

meetings are organized as per the statutory guidelines issued by

O/o.DC (MSME) New Delhi and MSME-DI has to organize

the meetings on six monthly basis as per the existent provisions. 8.0 Points by: Akola Industries Association, Akola (The representative was absent) 8.1 Approach Road from MIDC Akola to Shivni-Shivapur Rail Terminus 8.2 Delay in getting new Power Connection from Mahavitaran 8.3 Provision of Online Follow Up facility by Service Providers like MIDC, MSEDL, ESIC 8.4 Opening of Additional Regional Office of MIDC at Akola 8.5 Issues regarding Labour Cess in Construction 8.6 Operationalization of Fire Station at AkolaIndustrial Area 8.7 Reg. Fire Safety Cess being charged 8.8 Finding new sources for water supply to Akola Industrial Area 8.9 Development Charges charged by MIDC 8.10 Proposal not to charge stamp duty as per ready reckoner while

transferring Industrial Land /Industry The issues from 8.1 to 8.10 are related to MIDC and can be taken up as per directions at 5.10

8.11 To provide energy connection to MSMEs who have 200 HP Power Load approved by Mahavitaran

The Member Secretary submitted that the issue had come in the SLAB Meeting held in May, 2014 and the earlier limit of 50 HP was raised to 107 HP. The representative of MSEB had expressed in the meeting that due to technical reasons it was not possible to raise it beyond 107 HP. MACCIA representatives submitted that they could explain the subject with possibilities to the concerned officers in separate meeting.

9.0 Points raised by Federation of Indian Chamber of Commerce & Industries (FICCI) 9.1 Banking for key manufacturing sector in LIBOR.


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The representative of FICCI was absent and the issues were taken

up by the representative of CII. The chairman inquired about the LIBOR. It

was submitted by CII that LIBOR meant London Inter-Bank Offer Rates.

LIBOR is a benchmark rate that some of the world's leading banks charge

each other for short-term loans. It stands for Intercontinental Exchange

London Interbank Offered Rate and serves as the first step to calculating

interest rates on various loans throughout the world. In response the

Chairman advised to discuss the matter separately with RBI. 9.2 Strict Adherence of Loan Application register 9.3 Rate charged by Bank from MSMEs should not be more than 2% the base rate 9.4 Recommendations on Credit / Procedures for Banks / Institutions 9.5 Custom Procedures 9.6 Proper functioning of DGFT Website 9.7 Land related issues 9.8 Inspection 9.9 Labour Laws

While noting down the above point numbers from 9.2 to 9.9 on record,

the Chairman informed to take up the issue of non-functioning of DGFT

website to DGFT Mumbai Office and advised to visit “Aaple Sarkar” web

portal for initiatives taken by Govt. of Maharashtra in respect of

simplification of rules and procedures concerning to labour laws and

inspections etc. 10 Points raised by: Marathwada Association of Small Scale Industries (MASSIA) 10.1 Issue of Power supply of industries situated in Gut Areas :

President, MASSIA, mentioned that industries are facing issue of load

shedding in Gut Areas. The Chairman advised to take up the issue to local

authorities under intimation to him. 10.2 Implementation of Delayed Payment Act :

Attention was drawn to the cases of delayed payment in the MSE

Facilitation councils. The Chairman informed the house that Government

has empowered Joint Director of Industries to chair the facilitation council

hearings and instructions have been issued to expeditiously to dispose of

the cases.

The representatives of various Associations were mentioning that the large

scale buyers and Government Departments were not following the

provisions of the delayed payment act and were delaying the payments much

beyond 45 days. In response, Director, MSME-DI, Mumbai requested

representatives of Associations to bring to notice of their members to write


15

Udyog Aadhaar number on Invoices / Bills sent to Buyers. The disclosure of

MSE status by vendors / suppliers to buyer will reduce the problem. 10.3 Extending Credit period for VAT payment : 10.4 VAT not paid by Supplier :

The Chairman said that he would look into point no.10.3 & 10.4 after

receipt of detailed representation. 10.5 Clarity on need of provisional registration of the unit.

In response the Chairman said that provisional registration is not required

and necessary changes were brought to the notice of all concerned.

11.0 Points by All India Association of Industries, Mumbai (The

representative was absent) 11.1 Erroneous Sickness Data 11.2 Banking Service Charges 11.3 Uniform Rate of Interest 11.4 CGTMSE 12.0 Points by : Chamber of Small Industry Association (COSIA)

(Representative of COSIA was absent) 12.1 Issues related to MIDC 12.2 Suggestions for Ease of Doing Business

The issues raised by AIAI & COSIA were looked in to by the Chairman

while taking the note. The issues were already addressed while covering

other points.

13.0 Any other issue with the permission of the Chair.

During the meeting, the following issues were also raised :

a) All India MSME Association (AIMSMEA) – Reservation for Women

Entrepreneurs in Public Procurement Policy and inclusion of

Entrepreneurs in ESIC Scheme.

b) CII and other Associations were requesting for raising the limit of NPA

norms from 90 days to 180 days.

The Chairman observed that the above issues were related to policy matter

and advised them to raise such issues at policy formation forums. He would

help in recommending the issues, if supported by convincing justifications.

c) MASSIA requested for 30% reservation instead of 10% in MIDC in

respect of Delhi Mumbai Industrial Corridor (DMIC) Project. The Chairman

agreed to look into the matter and asked the association to send detailed

note in this regard.


16

d) Bombay Small Scale Industries Association brought the present condition of

JDI Office at Chunabhatti to the notice of Chairman. The Chairman informed

that arrangements are being made for relocating the Office in close

proximity of the present office.

e) MASSIA expressed the concern about the delay in possession of Br.MSME-

DI Office at Aurangabad. Director, MSME-DI, Mumbai informed that the

matter was pending at the end of MIDC Aurangabad and he had already

taken up the issue with the concerned authorities. In case of inordinate

delay, he will take the issue to CEO, MIDC through the Chairman.

f) Vice President, MEDC, mentioned that due to assistance from MSME-DI,

Mumbai, some women entrepreneurs have been benefitted from Public

Procurement Policy.

g) It was advised by the Chairman to submit issues related to other departments on separate pages for forwarding them to concerned

authorities. h) In addition to above issues Chairman advised to visit to MAITRI portal

for getting information of ease of doing business. The MAITRI portal has

been setup to disseminate maximum information about investment in the

state.

i) The Chairman informed that Maharashtra was ranked as Number One

in “Ease of Doing Business” in the study conducted by National

University of Singapore in 2016. This was applauded by the Members

and Invitees.

The meeting ended with the vote of thanks.


17

STATE LEVEL ADVISORY BOARD MEETING

DATE OF MEETING: 27TH SEPT., 2016 VENUE: MSME-DI, MUMBAI

ANNEXURE-1

ATTENDANCE SHEET

Sr. Name & Designation Organization Represented 01 Shri Vijay Singhal, IAS Development

Commissioner (Inds.), Govt. of Maharashtra & Chairman, SLAB

Development Commissioner (Industries), Govt. of Maharashtra

02 Shri Shivaji R. Daund, IAS Managing Director

Maharashtra Small Scale Industries Development Corporation (MSSIDC)

03 Mohan Sangavikar, Assistant General Manager

Reserve Bank of India, Financial Inclusion & Development Department, Mumbai Regional Office, Mumbai

04 Shri G.S. Awsekar Indo German Tool Room, Aurangabad

05 Shri J.B. Nayak Institute of Design of Electrical Measuring Instruments (IDEMI)

06 Mrs. P.P. Nachane Secretary IDEMI

07 Shri K.J. Bhosale Khadi Village Industries Commission (KVIC)

08 Shri T.R. Sharma, Dy. Director MSME-Testing Center, Mumbai

09 Shri D.R. Johari, Assistant Director MSME-Development Institute, Nagpur

10 Shri Milind V. Ogale Dy. Chief Fire Officer, MIDC, Fire Service

Maharashtra Industrial Development Corporation (MIDC)

11 Shri Sanjay Korabu, Technical Advisor, MIDC

MIDC

12 Shri Kulkarni P.P. Executive Engineer MIDC

13 T. S. Narayanan, NPC, Mumbai National Productivity Council (NPC)

14 Shri S.K. Ramteke, Chief Manager – Purchase

Hindustan Petroleum Corporation Limited, Mumbai

15 Prof. Rakesh Mok Indian Institute of Technology, Bombay

16 Ms. Chand Kureal Dy. General Manager, SIDBI

Small Industries Development Bank of India (SIDBI)

17 Shri Naresh Kumar, Director, Regional Office, Ministry of Textiles

Regional Office, Ministry of Textiles


18

18 Shri S. Domse, Asstt. Director, RV-TYC

Textile Commissioner Office

19 Shri Nandakumar K. Co-Chair Sub-Committee, EODB

Confederation of Indian Industries (CII), Mumbai

20 Shri Santosh Mandlecha Maharashtra Chamber of Commerce & Industries & Agriculture (MACCIA).

21 Shri Vishwas S. MACCIA.

22 Shri Bankim Mistry, President Bombay Small Scale Industries Association (BSSIA)

23 Dr. Avinash Dalal All India MSME Association (AIMA, MSME)

24 Ms. Madhuri Patil Dy. Secretary, MACCIA, Mumbai

MACCIA

25 Ms. Meenal Mohadikar, Vice President, MEDC

Maharashtra Economic Development Council (MEDC)

26 Ms. Chaitali Chavan, Asstt. Editor, Udyogini Pratistan

Amhi Udyogini Pratisthan

27 Ms. Shikha Chauhan India SME Forum

28 Shri Ashok Kharatmal National Advisory Committee Member,

National SC/ST Hub, Govt. of India.

29 Shri Vijay Lakurwale President Marathwada Association of Small Scale Industries & Agriculture (MASSIA)

30 Shri Nilesh P. Dusane MACCIA, Nashik

31 Shri Narayan Pawar, Secretary MACCIA

32 Shri S.K. Thote, HOD Co-ordination Maharashtra Center for Entrepreneurs Development, Aurangabad

33 Shri R.B. Gupte, Director, MSME-DI, Mumbai & Member Secretary SLAB

MSME-DI, Mumbai

34 Shri Shivaji Patil, ISS Dy.Director, MSME-DI, Mumbai & Coordinator, SLAB

MSME-DI, Mumbai


19

LIST OF MEMBERS / INVITEES ABSENT

SL MEMBER / INVITEE

01 National Small Industries Corporation

02 Coir Board

03 Convener, State Level Bankers’ Committee, Bank of Maharashtra

04 Chamber of Small Industry Associations (COSIA)

05 Federation of Indian Chamber of Commerce & Industries (FICCI)

06 Dalit Indian Chamber of Commerce & Industries (DICCI)

07 Akola Industries Association (AIA)

08 Vidarbha Industries Association (VIA)

09 All India Association of Industries (AIAI)

10 Grahak Panchayat

11 Maharashtra Electricity Distribution Company (MEDCL)

12 Director General of Foreign Trade (DGFC)


20

ACTION TAKEN REPORT

Sl Point No.

Point Action By Expected Action Action Taken

1 1.1 Energy Tariff Issue of Ahmednagar Auto & Engg Association

State Govt Matter was to be taken up with State Electricity Board.

Member Secretary has discussed the matter with JDI in O/o.DC(Inds.). It is a policy matter and representations from other CFCs was also necessary. Accordingly, other operational CFCs were contacted and now Baliram Hiray Hi-Tech Textile Cluster Malegaon has submitted similar representation.

2 2.2 Funding Scheme for Working Capital for MSMEs

MACCIA Detailed write-up desired by the Chairman

Matter is being pursued with MCCIA for detailed note.

2.3 Issue of Sickness Certificate to MSMEs.


2.4 Interest Subsidy for Importing Machinery


2.5 Issues related to procedural delays at MIDC

MACCIA MACCIA was asked to write a letter to CEO, MIDC through the Chairman

2.6 Participation of existing coal beneficiation plants installed by private companies in Special E-auction of coal.

MACCIA Detailed note desired by the Chairman


21

3 3.1 Issues pertaining to MSEDL

MSME-DI Chairman advised to get write-up for forwarding the same to the concerned department and further advised to ensure their presence in the next meeting

Invitation is being sent for the present meeting.

4 4.1 Issue of Professional Tax

BSSIA The Chairman desired detailed note for taking up the issue with the Department of Finance

Matter is being pursued with BSSIA for detailed note.


22

ANNEXURES Agenda Points received from Industry Associations


23


24


25

CHAMBER OF SMALL INDUSTRY ASSOCIATIONS ESTD.YEAR 1990 REGD.NO.11-67185

COSIA/034/04/17/ 25th April 2017 Shri. R.B. Gupte Director, MSME Development Institute, Ministry of MSME, Govt. of India, Kurla Andheri Road, Sakinaka, Mumbai-400 072 Namaskar, Subject:- COSIA’s Points for State Level Advisory Board Meeting. Thanks for your e-communication dated 10th April 2017 on above subject. I hereby request you kindly to include following issues in the Agenda of the meeting: 1. MIDC Road Problems:- Encroachments on the roads in the Industrial areas of MIDC need to be dealt on priority and very firmly. These roads are being handed over to the local self Govt. namely Municipal Corporations. Unfortunately neither MIDC nor the Principal Corporation is sensitive to the issue. These roads should be declared ‘unencroachable’ and any encroachment should be removed instantly by the authority.

2. MIDC Area – Unauthorized Parking :- Automobiles showroom, used car sales, service centre and Garages, JCBs, trucks, Dumpers, Private Buses and such other vehicles are parked and even repaired on the roads itself. This causes serious traffic jams and accidents also. Appropriate action is essential by the authorities in this respect. 3. Ease of Doing Business:- Following suggestions may be considered for Ease of Doing Business by MSMEs:- A: Recognition to Definitions in the MSMED Act by all:- The MSMED Act 2006 is a special Act enacted for the development of MSMEs in all respects. This Act has defined as to what constitutes as Micro/Small/Medium Enterprise. However, this definition is not recognized by other Ministries under their laws. The Central Excise has a different definition of small industry based on turnover. There is no such definition in service tax/vat/labour laws etc. even the coming GST law is missing the said definition. This is greatly affecting the Micro & Small Enterprises in Ease in Doing Business. It is essential that the definition under the MSMED Act is recognized and accepted by all the Ministries in the Govt. of India and appropriate insertion of it is being made under all the laws which are applicable to the MSME Sector.

Member, National Board for MSMEs [2010-2012]

CIN NO.:- U91110MH1992NPL067185

Silver Jubilee Year


26

B.: Taxation:

1. Only Annual Return for MSEs:- To provide the real Ease in Doing Business it is essential to change the Excise Law & Rules so that there will be only Annual Return for the Micro & Small Enterprises. This further necessitates to replace the definition of Small industry in the Excise Act with that of the definition in the MSMED Act 2006. This is also to be provided in the coming GST Law.

2. Composition Scheme under Income Tax - It has been provided that the entrepreneurs having annual turnover up to Rs. 2 crores are eligible under this scheme. It will not be essential for them to keep the Books of Accounts and other relevant records. We suggest that all the Micro enterprises as defined in the MSMED Act 2006 be covered under this scheme.

It must be noted that the entrepreneurs are also required to implement various provisions under other taxation laws like Central Excise, Service Tax, Customs,State VAT and so on. It is therefore essential that the Composition Scheme be extended to all such tax laws and all the Micro enterprises as defined in the MSMED Act, 2006 may be covered under the said scheme.

C.: Foreign Trade:

1. Status Holder:- The Foreign Trade Policy has provided for Status Holder vis-à-vis Status Category in Chapter 3. Accordingly Status of one star export house is available to those exporters having export of 3 million US dollars. It means if the exports are Rs. 20 crores plus, this Status is available.

We suggest that for Micro Enterprises this limit should be of Rs. 10 crores and for Small Enterprises of Rs. 15 crores. The 20 crore limit be retained for Medium Enterprises.

D.: Accreditation:-

1. The Govt. has designed a scheme of accreditation by NABET for the BMOs [Business Membership Organisations] COSIA has received the said accreditation. However, the said scheme needs to be popularized and just like financial assistance for Bar Code /ISO 9000 Certification to the MSEs, 50% fees of accreditation should be borned by the Ministry of MSME, since the current accreditation fees are exorbitant.

2. The Govt. should encouraged such accredited organizations only and be involved in their various schemes like NMCP, Cluster Development etc.

3. The accredited organizations should be selected as a member of various committees of the Central/State Govt. related with all MSME matters. Particularly these organizations should be selected and nominated upon the National Board for MSMEs and Advisory Committee under the MSMED Act, 2006. The necessary improvement be made in the MSMED Act, 2006 to that effect.

4. Such organizations should also be selected as a member of various Committees of the Govt.


27

E. MSMED Act Amendments:-

1. UAID should be made compulsory for all MSEs with Shops and Establishment Registration.

2. In order to prevent discrimination by corporate clients Printing of UAID Number on Invoices should be made compulsory.

3 Section 2(b) ii : Include following text at the end of the Deemed Acceptance definition –

For Manufacturing Units with pre dispatch inspection clause, the units shall submit Inspection call once material is ready and get acknowledgement. If buyer does not depute representative for inspection within 15 days and inform about acceptance or rejection, material would be deemed to be accepted and MSME would be free to deliver the material. For such supply, the day of delivery shall be considered to be appointed Day.

4. Payment delayed beyond 180 days : Purchases whose payments are delayed beyond 180 days from the appointed day, not only the interest but the entire expenses [the value of purchases plus interest] should be disallowed under Income Tax Act.

5. ESIC:- Recently a Notification has been issued by the Govt. of Maharashtra in line with the guidelines and changes in the ESIC Act. This is mainly to cover the more employees under the said Act and to involve almost all the enterprises. There are no ESIC hospitals or their medical facilities available in many industrial areas. To compel the entrepreneurs to pay the share of ESIC for no services is ridiculous and therefore needs to be reconsidered.

COSIA’s suggestions on Maharashtra State Innovation and Startup Policy

COSIA would like to forward following suggestions on the above subject.

1. Incubators on PPP Principle - It has been provided that incubators on PPP model will be

developed mainly in twelve industrial sectors/areas. The sector of production &

manufacturing is very vast and practically covers everything. The MIDC’s & other

industrial belts/areas are mostly dominated by MSMEs particularly in Engineering.

Therefore, we suggest that Engineering should get specific inclusion in it.

Similarly Leather Goods Industry in Maharashtra is a world class industry and it has a

special advantage of employment. It is also an export oriented sector of India. Therefore,

this sector should also have a special inclusion.

We also suggest that the Industry Associations should also be encouraged to set-up

incubators on PPP Model since many industry Associations are having an appropriate

infrastructure like up-to-date building, halls, library etc.

2. Maharashtra State Innovation Society:- To establish Maharashtra State Innovation

Society for the promotion and implementation of various programmes in relation with


28

innovation is a right step. It is provided that besides officers of various departments,

scientists, the governing council of the said society will also have representatives of

Industry Associations. We suggest that the representatives of Industry Associations

should be from the accredited Industry Associations.

3. State Innovation Cell: - The establishment of State Innovation Cell as a single point

contact at the State level and District Innovation Cell at District level is the right step for

the promotion of innovative entrepreneurship vis-à-vis start-up. Alongwith the large

companies/multinationals in Maharashtra, we suggest that the Industry Associations in

Maharashtra be linked up in this endeavor.

4. Special promotion for Women Start-up:- There is no specific mention of women Start-up

which is very essential for the promotion of Women entrepreneurship particularly in

areas of health, hospitality, textile, finance, food processing, bio-technology and services

like retailing, tourism, etc. We suggest that more incentives by way of specific

reservations in incubation and priority finance be provided to Women Start-up.

5. ESIS Hospital related Issue:-

This issue was taken in every meeting of ESIC local Committee, which held under the chairmanship of Asstt Commissioner of Labour we had been informed that following issues were forwarded to the concerned higher authorities for approval. All the issues listed below related health of the IP (workmen’s) and the services provided by Wagle Estate ESIS Hospital. IP from Thane has to run from pillar to post for small issues and health. Said issues sent to higher authorities also by TSSIA.

Following issues are required to be address immediacy for the betterment of IPs. 1. Shortage of Doctor & specialist 2. Lack of Pathology Laboratory and Advance Testing facilities like Sonography digital x-ray, MRI etc 3. Poor maintenance of hospital building 4. In adequate capacity of DG Set 5. Non-functional of O.T. 6. Shortage of supporting staff 7. Frequent failure of old ambulance 8. Need to appoint Panel Doctor for better service 9. Shortage of medicine 10. Because of this problem IP are asked to go to private hospitals by doctors.

The IPs must get hospitalization at any hospital run by ESIS or ESIC. IPs must get permission letter for admission in Tie-up Hospital or any other Hospital run by State & Central Government, from any nearest hospital instead of asking letter from home hospital. Senior officials shall be deputed at Local Committee meeting of ESIS.


29

6. No Broadband & Telephone Service of BSNL at Pimplas , Tal Bhivawndi.

Jai Jalaram Complex has offer place for Exchange in said area but there is no response

from BSNL. There are approx 50 - 60 MSME's employing over 2,000 people in Village

Pimplas.

Thanks & regards,

P.S. Agwan, Vice President


30


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36

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37

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12. b÷Ò ZÉÉäxÉ ºÉÉ`öÒ ¡òÉªÉ®ú ºÉäºÉ ±ÉÉMÉÚ xÉºÉiÉÉÆxÉÉ ºÉÖvÉÉ b÷Ò ZÉÉäxÉ±ÉÉ B¨É iÉä ÊiÉxÉ

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38

+ÉènùªÉÉäÊMÉEò IÉäjÉÉSªÉÉ Ê´ÉEòÉºÉÉSªÉÉ nÖù¹]õÒxÉä ¨É½þÉ®úÉ¹]Åõ +ÉètÉäÊMÉEò Ê´ÉEòÉºÉ

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13. Development Charges Charged by MIDC ¨ÉÖJªÉ EòÉªÉÇEòÉ®úÒ




14 Proposal not to charge stamp duty as per ready reckoner

while transferring industrial Land /Industry ¨ÉÖJªÉ EòÉªÉÇEòÉ®úÒ




15. +EòÉä±ÉÉ <Æb÷Îº]ÅõVÉ +ºÉÉäÊºÉB¶ÉxÉ±ÉÉ xÉMÉ®ú{ÉÉÊ±ÉEäòSªÉÉ ÊVÉ±½þÉ ÊxÉªÉÉäVÉxÉ ´É

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ºÉÊ¨ÉiÉÒ (District Planning & Development Committee) ¨ÉvªÉä

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39

AIAI, MUMBAI

Agenda points for consideration at the State Level Advisory Board Meeting (SLAB)

The Micro, Small & Medium Enterprises (MSME) sector plays a pivotal role in India’s economic development making significant contributions to GDP, employment and exports. It is estimated that in terms of value the sector accounts for about 45% of the manufacturing output and around 40% of the total export of the country. Lately, the MSME sector is suffering due to sluggish demand, job losses, difficulties in bank finances, etc. Following are some of the points for consideration at the forthcoming SVAL meeting.

1. Loan against property - Today, a common practice for MSMEs is to take loan-

against property (LAP). LAP has witnessed a compounded annual growth rate of 25% between 2012 and 2016. International rating agency Moody’s has pointed that Growth in LAP loans has outpaced overall retail credit growth in recent years. However, relatively loose underwriting practices and a tightening in credit following the demonetisation would translate into higher asset quality risks. Disruptions in the borrowers' cash flows may further trigger delinquencies, while tightening underwriting practices will make it more difficult for them to take new debt. This may ultimately result in higher NPAs. Suggestions: Our study post interaction with several MSMEs indicate that nearly 52% of the cases filed for recovery under Rs. 1 cr lending is under SARFASAI Act, i.e. loans are availed under security. Government must therefore direct all banks to return the securities collected from SME sector for loans given under Rs. 2 crores.

2. Lowering interest rate - While the enhancement in credit guarantee scheme from Rs 1 crore to Rs 2 crore including NBFCs will give much needed credit liquidity. It would help MSMEs to access more funds to fulfill their growth potential. However, we strongly feel that these measures are not enough to brace MSMEs. Suggestions: Government must take additional measures to support them in terms of making additional funds available by realigning interest rates for fund raising. The Government must ask banks to bring transparency in the Marginal Cost of Funds Based Lending Rate (MCLR) system used while providing loans to different sectors. Today, home loans are available at ~8.5%, from the level of


40

~10.5% two years back, wherein SME loans are still high hovering around 11-15%. This creates huge disparity. The access to cheaper loans will help MSMEs to sustain their businesses. These are necessary to revive that sluggish demand and improve the consumption and thereby help accelerate the economy.

3. Adoption of global standards – Adoption of global standards are imperative for the success of Make in India. Indian manufacturing needs to improve in terms of productivity and efficiency to compete in a globalized market. MSMEs will play a big role in achieving this. Suggestions: Adoption of global standards will help MSMEs to reach a level playing field and get their share of economic success. Government should promote Skill India, Startup India and Digital India in partnership with global vocational training institutes from countries such as Germany and Switzerland that have proved effective in imparting competitive vocational training.

4. Credit Guarantee Trust Fund for Micro and small Enterprises (CGTMSE):

CGTMSE is a good step towards the growth of this sector as the scheme aims to

provide credit to Micro and Small enterprises for loans up to Rs. 100 lacs without

collateral or third party guarantees.

Suggestion:

a) The government should consider sanctioning loans to startups to meet their

individual needs and can be categorize as follows

b) Production Purchase Fund up to Rs. 100 lacs

c) Market Promotional Fund up to Rs. 100 lacs

d) Expansion Fund up to Rs. 100 lacs

e) Upgradation Fund up to Rs. 100 lacs

f) Research Fund up to Rs. 10 lacs - A common research center can be initiative in

clusters that will offer research data on market, customer and competitors. As well

as conduct market surveys on customer demand, needs and wants of the market.

g) Start-up Fund up to Rs. 200 lacs - The government should consider sanctioning of

loan on the PPP Model (Public Private Partnership Model) for setting up the

enterprise, purchase machineries and setting up the plants. The concern

authorities should monitor the progress of the startups.

5. Erroneous Sickness Data: In reporting the data on lending to small firms banks include loans made out under many sop programs of the Planning Commission. Most of these are giveaways at best. Naturally, this magnifies the scenario of overall sickness of and loans outstanding against small firms. In reality, the nonperforming loans outstanding against small firms are much smaller than in


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lending to medium and large firms. Suggestions: Government and RBI should adopt appropriate mechanism and a nodal agency to track progress.

6. Timely /Adequate Availability of Credit: The adequate /timely availability of credit has been a long standing issue confronting the vibrant sector of economy. Various committees were set up in 90s by RBI/Govt. such as P.J. Nayak Committee, S.L. Kapoor Committee to address the issue. P.J. Nayak Committee had recommended that 20% of sales achieved should be provided bare minimum & banks were liberty to justify/verify, if additional working capital is required. It is an admitted fact that since Nationalization in 1969, banks were conservative in sanctioning the working capital limits. Banks were reluctant to provide 20% of sales achieved. The recommendations were not implemented in letter & spirits. The Task Force was constituted in Sept., 2009, which has recommended 60% of MSE credit to Micro Enterprises, which is to be achieved in stages. The fact that 50% was to be achieved in 2010-2011 (both manufacturing & Service sector).Needless to mention that the focus of Nationalized banks is on SMEs & not on Micro Enterprises/service enterprises.

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