Centre asks states to simplify compliance procedures for MSMEs

NEW DELHI: The Centre today asked states to simplify compliance procedures for micro, small and medium enterprises (MSME) and address issues related to availability of credit facilities and skilled man-power.

Union MSME minister Kalraj Mishra today convened a meeting of ministers and principal secretaries from all states and Union Territories.

The Union minister said that the major problem areas for the MSMEs are lack of availability of credit facilities, technology advancements, availability of skilled man-power, availability of infrastructure and a higher cost on regulatory compliances.

"All the state governments have again been requested to work in all these areas, especially after the ease-of-doing business campaign.

"It is heartening to note that various states have simplified their processes and it would be appropriate that these processes are further rationalised, especially for MSMEs," Mishra was quoted as saying in a release issued by the MSME ministry.

Besides, the states were requested to create a separate department or at least a separate directorate for the development and growth of the MSMEs.

The states were also requested to come up with a policy to encourage the MSMEs. States such as West Bengal, Odisha, Andhra Pradesh and Rajasthan have already come up with such policies.