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MSMED ACT, 2006 <ul><li>Presented By </li></ul><ul><li>Dhanya Menon </li></ul>
<ul><li>The Micro Small And Medium Enterprises Development Act, 2006 </li></ul><ul><li>MSMED Act was established to provid...
<ul><li>Prior to 2006 Act: </li></ul><ul><li>Small and village Industries </li></ul><ul><li>After 2006 Act: </li></ul><ul>...
The MSME sector comprises <ul><li>45%  o f India ’s industrial employment </li></ul><ul><li>50%  of India’s total manufact...
The Hurdles <ul><li>Inability to access finance </li></ul><ul><li>Inability to access working capital loans from banks </l...
MSMED Act 2006 : Objects <ul><li>1 .  introduce statutory consultative and recommendatory bodies on MSME policies </li></u...
Salient Features <ul><li>Industry replaced by enterprise which include service enterprises also. </li></ul><ul><li>Ambit o...
<ul><li>Policy of preferential procurement from MSMEs </li></ul><ul><li>Progressive credit support </li></ul><ul><li>Penal...
DEFINITION OF MSMEs <ul><li>by the level of Plant and Machinery investment </li></ul><ul><li>Eliminates the confusion over...
<ul><li>Manufacturing Enterprises </li></ul><ul><li>Micro  : Rs. 25 Lakhs </li></ul><ul><li>Small  : Less than 5 Crores </...
<ul><li>simplified the registration process for new MSMEs </li></ul><ul><li>The previous time consuming process has been r...
<ul><li>Increased penalty for late payments </li></ul><ul><li>Period of payment reduced to 45 days </li></ul><ul><li>Rate ...
Credit Support <ul><li>Public sector banks advised to double the flow of credit to MSMEs within 5 years  </li></ul><ul><li...
<ul><li>The Act provides for the composition of the National Board for Micro, Small & Medium Enterprises </li></ul><ul><li...
DUTIES AND OBJECTIVES OF THE BOARD <ul><li>Examine the matters affecting the promotion and development of MSMEs </li></ul>...
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Msmed act, 2006

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  • Violating the MSME act 2006 for Corporate House by Honble Justice I.P. Mukerji of Calcutta High Court

    Hon’ble Minister Ji,
    Save SSI engg mfg unit from bankrupt need your Intervene to get our very long outstanding payment Rs.1597930/- from Mr.Umesh Choudhary MD of M/s Titagarh Wagon Ltd. He has stuck up our hard earn money since 2012 by misusing public money and violating MSME act 2006 with the help of Honble Justice I.P. Mukerji of Calcutta High Court and Advocate Mr. Dibanath Day and Mr Atanu Raychaudhary by over ruling the MSME law. They are very big Corporate and want to eat Small Scale Industry like us. Kindly help.
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Msmed act, 2006

  1. 1. MSMED ACT, 2006 <ul><li>Presented By </li></ul><ul><li>Dhanya Menon </li></ul>
  2. 2. <ul><li>The Micro Small And Medium Enterprises Development Act, 2006 </li></ul><ul><li>MSMED Act was established to provide for facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises and for matters connected therewith or incidental thereto. </li></ul><ul><li>Became operational from 2 nd October 2006 </li></ul>
  3. 3. <ul><li>Prior to 2006 Act: </li></ul><ul><li>Small and village Industries </li></ul><ul><li>After 2006 Act: </li></ul><ul><li>Micro and Small Enterprises </li></ul>
  4. 4. The MSME sector comprises <ul><li>45% o f India ’s industrial employment </li></ul><ul><li>50% of India’s total manufactured exports </li></ul><ul><li>95% of all industrial units in the country </li></ul><ul><li>More than 6000 products </li></ul>
  5. 5. The Hurdles <ul><li>Inability to access finance </li></ul><ul><li>Inability to access working capital loans from banks </li></ul><ul><li>Inability to access capital from other sources </li></ul><ul><li>Mistreatment from larger companies </li></ul><ul><li>Difficult procedure for registration </li></ul><ul><li>Lack of management skills </li></ul><ul><li>Availability of cheap foreign goods </li></ul>
  6. 6. MSMED Act 2006 : Objects <ul><li>1 . introduce statutory consultative and recommendatory bodies on MSME policies </li></ul><ul><li>2. improve registration procedures of MSMEs </li></ul><ul><li>3. statutory basis for purchase preference and credit policies </li></ul><ul><li>4. Improve realization of payments of MSMEs </li></ul>
  7. 7. Salient Features <ul><li>Industry replaced by enterprise which include service enterprises also. </li></ul><ul><li>Ambit of sector enlarged to cover medium enterprises. </li></ul><ul><li>Constitution of MSME Board </li></ul><ul><li>Simplification of registration procedure </li></ul><ul><li>Cntd… </li></ul>
  8. 8. <ul><li>Policy of preferential procurement from MSMEs </li></ul><ul><li>Progressive credit support </li></ul><ul><li>Penalty for delayed payments </li></ul>
  9. 9. DEFINITION OF MSMEs <ul><li>by the level of Plant and Machinery investment </li></ul><ul><li>Eliminates the confusion over the category to which a business belongs </li></ul><ul><li>makes allowances for the inherently smaller investments of Service enterprises </li></ul>
  10. 10. <ul><li>Manufacturing Enterprises </li></ul><ul><li>Micro : Rs. 25 Lakhs </li></ul><ul><li>Small : Less than 5 Crores </li></ul><ul><li>Medium : Less than 10 Crores </li></ul><ul><li>Services Enterprises </li></ul>MSME classification based on investment limit in plant and machinery: Micro : Less than 10 Lakhs Small : Less than 2 Crores Medium : Less than 5 Crores
  11. 11. <ul><li>simplified the registration process for new MSMEs </li></ul><ul><li>The previous time consuming process has been replaced by a simpler Filing of Memoranda </li></ul>
  12. 12. <ul><li>Increased penalty for late payments </li></ul><ul><li>Period of payment reduced to 45 days </li></ul><ul><li>Rate of interest three times the prevailing bank rate </li></ul>
  13. 13. Credit Support <ul><li>Public sector banks advised to double the flow of credit to MSMEs within 5 years </li></ul><ul><li>A minimum of 40% of bank credit earmarked for priority sector lending which includes loans to MSEs </li></ul><ul><li>Specialised SME Bank branches in industrial clusters for smooth flow of credit to MSMEs </li></ul><ul><li>One Time Settlement (OTS) scheme for settling non paid amounts of MSMEs </li></ul>
  14. 14. <ul><li>The Act provides for the composition of the National Board for Micro, Small & Medium Enterprises </li></ul><ul><li>Ex Officio Chair Person: Union Minister (MSME) </li></ul><ul><li>Ex Officio Vice Chairperson: Minister of State or Deputy Minister (MSME) </li></ul>
  15. 15. DUTIES AND OBJECTIVES OF THE BOARD <ul><li>Examine the matters affecting the promotion and development of MSMEs </li></ul><ul><li>Review the programs and policies of Central Gvt. Reg. </li></ul><ul><li>Make recommendation on the above matters or any matters referred to it by the Central Gvt. </li></ul><ul><li>Advise the Central Government on the use of the fund constituted under this Act </li></ul>
  16. 16. THANK YOU

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