'Inspector raj' stifled MSMEs: AIOE

Complimenting the prime minister and his government for announcing several labour policy reforms, Sanjay Bhatia, president, All India Organisation of Employers (AIOE), an allied organization of Ficci, has said that the ongoing 'Inspector Raj' and procedural complexities had stifled the potential of micro, small and micro enterprises (MSME).

This was stated by a news release issued by the Federation of Indian Chambers of Commerce and Industry (Ficci), of which AIOE is an allied organisation.

The reforms, riding on technology, therefore, constituted a significant milestone, Bhatia said. He hoped that these efforts would improve compliance drastically. However, providing training to rural-based enterprises on application to the portal would be critical for the success of the scheme.

Improving the apprenticeship system would require facilitating enterprises through incentives to encourage them to enroll more apprentices. It was a matter of concern that while the number of enterprises in the country exceeds 40 millions, only 2.81 lakh apprentices are trained every year, he said. Every 'working place' should be a 'training place', he added. The Bills to amend the Factories Act, Apprentices Act and Labour Laws (Exemption from Furnishing Returns & Maintaining Registers by Certain Establishments) Act, 1988 already placed in Parliament, had signaled a positive message to industry on the intent of the government, he said.

Removing some of the harsh provisions in the Factories Act, like imprisonment even for minor violations, is greatly appreciated and increasing overtime hours from 50 to 100 per quarter would help execute production-related targets within the time schedule.

Adoption of Unified Account Number (UAN) by the EPF organisation would not only make transfer of accounts simpler, but would also solve the issue of unclaimed accounts which hold Rs 27,000 crore.

Bhatia hoped that the second phase of labour policy reforms would address more important areas, such as allowing industry to engage contract labour freely and removing government intervention in 'restructuring or right sizing of industry', which would provide fresh impetus to employment generation.