Table of Contents
CONTEXT
- The Punjab Department of Industries was preparing to bring an Ordinance,
- But since a special session of the Assembly has been called to extend reservations for SCs and STs for another 10 years,
- The Right to Business Bill will also be brought before the House on January 17.
APPROVALS REQUIRED TO START A MSME
- Sanction of building plans
- Issuance of completion/occupation certificate for buildings
- Registration of new trade license under the Punjab Municipal Act, 1911 and the Punjab Municipal Corporation Act 1976
- Sanction of building plans
- Issuance of completion/occupation certificate
- Change of land use under the Punjab Regional and Town Planning and Development Act 1995
- Application for fire ‘No Objection Certificate’ under the Punjab Fire Prevention and Fire Safety Act 2004
- Approval of factory building plan (except for industries involving hazardous processes as per the first schedule of factories Act, 1948) under the Punjab Factory Rules, 1952
HOW THIS ACT WILL HELP?
- The Act will have overriding powers over various Acts of different departments that make approvals necessary before the setting up of small and medium units.
- An MSME unit can be set up after ‘In-Principle’ approval from District Bureau of Enterprise.
DISTRICT BUREAU OF ENTERPRISE
- The Act provides for a District Bureau of Enterprise (DBE) in each district.
- It will be headed by the Deputy Commissioner.
- All DBE would work under the overall superintendence, direction, and control of the State Government. (Director, Industries)
APPROVAL TIME FRAME
- Approval for units in approved Industrial Parks will be given in 3 working days.
- For new enterprises outside approved Industrial Parks, shall be done within 15 working days.
DOES IT MEAN, INDUSTRIES DON’T REQUIRE APPROVALS?
- Unit owners will have three and a half years after setting up the unit to obtain approvals.
MANDATORY APPROVALS
- The industries involving hazardous processes will have to obtain a Fire NOC.
- All units will have to get environmental clearance from the Pollution Control Board beforehand.
IMPORTANCE OF MSMES FOR INDIAN ECONOMY
- Large scale employment
- Sustain economic growth
- Making Growth Inclusive
- Increase exports
- Financial inclusion
- Promote innovation
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