You are here: Home » SME » SME News
Business Standard

MSME Facilitation Councils being set up

BS Reporter  |  Mysuru 

The Karnataka government has formed a Micro & Small Industry Facilitation Council to serve MSMEs in Mysuru.

Presently, a facilitation council is functioning at Bengaluru set up under the Micro, Small and Medium Enterprises Development (MSMED) Act 2006. It functions as a state-level council and MSMEs had to go to the state capital to seek the council’s remedial measure for the recovery of delayed payments by medium, large industries, public sector undertakings, state and central government undertakings. It functions under the chairmanship of the development commissioner and director of the Industries Department, Government of Karnataka.

Besides the hassle of going to Bengaluru to file a case for recovery, decisions delayed by over six months to a few years was driving MSMEs to pull down their shutters for their failure to recover the dues from industries to whom they supplied their products in time.

In view of this, MSMEs were urging the state government to set up separate facilitation councils at regional levels. The Mysore Industries Association (MIA) had appealed to the government to set up a Council in Mysuru for the benefit of MSMEs in the area.

Accepting their plea, the government has set up separate councils for Mysuru, Belagavi and Kalburgi (Gulbarga) under the chairmanship of the regional commissioners.

MIA General Secretary Suresh Kumar Jain said, setting up of a separate council in Mysuru will greatly benefit MSMEs in Mysuru and the surrounding places. Headed by the Mysuru headquartered Regional Commissioner, the council has the District’s State Bank of Mysore Lead Manager, Karnataka State Finance Corporation Deputy General Manager and MIA President as members and District Industries Centre Joint Director as member-secretary.

Tamil Nadu has set up six such councils. Coming to know of this, Jain said, MIA had appealed to the chief minister prior to the state budget to set up a separate Council for Mysuru on which he had acted now. The MIA General Secretary thanked Chief Minister Siddaramaiah, SSI Minister Satish Jarakihole and Industries Department Secretary Thushar Girinath. “It is a gift to MSMEs on the completion of two years by the Siddaramaiah government,” Jain said.

The advantages of the Council are: Large, Medium and Government undertakings have to make payments to all micro and small industries that supply their products to them within 45 days from the date of purchase under the MSMED Delayed Payment Act 2006 of the Government of India; for delay over 45 days, they have to pay interest three times over the PLR rate of interest; the purchasing industry has to show in its balance sheet the amount and interest due to the supplier; and, the supplier can complain to the Facilitation Council set up by the state government for recovery of dues.

MIA will organise an awareness programme for MSMEs in Mysuru region on the MSMED Act 2006, facilitation council’s role, method of filing application and recovery steps during June second week, added Jain, in a release.

First Published: Thu, May 21 2015. 20:27 IST