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Lok Sabha: Chandigarh MP Manish Tewari questions MSME framework’s Non-Implementation in Chandigarh


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New Delhi/Chandigarh, March 24

Chandigarh MP Manish Tewari has brought into focus the implementation of the MSME framework in Chandigarh. Raising the matter in Lok Sabha through his unstarred question 4490, Tewari questioned whether the Government has examined the reasons for non-adoption of the provisions of the Micro, Small and Medium Enterprises Development Act, 2006 in the Union Territory of Chandigarh, despite its applicability in neighbouring States and the timeline ahead for its implementation in Chandigarh.

Tewari also asked whether the absence of a formal MSME framework in Chandigarh has impacted access to benefits such as delayed payment protection, formal recognition of service enterprises and institutional support and sought details thereof. The MP further inquired if the Chandigarh UT Administration is formulating and notifying a dedicated MSME policy and what key features are being considered.

Another query raised by Chandigarh MP Manish Tewari was whether industry bodies had submitted representations regarding the lack of parity with neighbouring States in MSME facilitation and what action had been taken in response. He further asked what measures are underway to bring Chandigarh’s enterprise ecosystem in line with national MSME policies, aimed at boosting ease of doing business and attracting investment.

Responding to Tewari’s queries, Minister of State for MSME Shobha Karandlaje stated that the Micro, Small and Medium Enterprises Development Act, 2006 is indeed applicable across the country, including Chandigarh and that enterprises in the UT are eligible to avail benefits through the Udyam Registration Portal. “As of now, 89,119 MSMEs are registered in Chandigarh, with 37,035 engaged in services’, she informed.

Karandlaje added that the certain provisions of the Act require institutional arrangements by State/UTs, including adjudication of delayed payment cases through establishment of the Micro and Small Enterprises Facilitation Council. She acknowledged that the representations from industry associations and stakeholders are received from time to time regarding MSME facilitation in different regions, including Chandigarh, while adding, “Such representations are taken up with the concerned State Government/UT Administration and others for appropriate consideration and necessary action.”

On the matter of a dedicated MSME policy for Chandigarh, the Minister noted that this falls under the purview of the UT Administration and the Ministry of Home Affairs. She also acknowledged that industry bodies have raised concerns about parity with neighboring states and assured that such representations are taken up with the concerned authorities for appropriate action. “The Ministry continues to engage with states and UTs to align enterprise ecosystems with national MSME policies, aiming to improve ease of doing business, strengthen grievance redressal and promote investment and competitiveness”, she said.

Karandlaje stated that the Ministry of MSME continues to engage with States and Union Territories, including Chandigarh, through stakeholder consultations and advisory communications to encourage alignment with the MSME Development Act, 2006 and national policy initiatives.

Tewari said that the entire problem of the Chandigarh Industrial area would be resolved in a single shot if the MSME act as legislated by Parliament and promulgated through a Government of India Gazette notifications is implemented en-toto in Chandigarh allowing all the trades listed in  the MSME Act  to ply in Chandigarh. How can a Central Act be held hostage to some executive ditkat’s of the Central Government he wondered?  This selectivity to favour certain’ vested interests’ is subversive to the interests of the MSME sector in Chandigarh that is the bulk employer in the city.


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