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Haryana to set up an MSE facilitation council in every district

Haryana to set up an MSE facilitation council in every district

The Haryana government’s decision to establish MSE (Micro and Small Enterprises) facilitation councils in every district of the state is a positive step towards enhancing the ease of doing business for MSMEs. This move aims to provide a more localized and accessible platform for MSMEs to address their grievances and seek assistance.

By expanding the facilitation council network, MSMEs in Haryana will have better access to support and resolution mechanisms at the district level. The presence of facilitation councils in each district can help streamline the process of addressing concerns related to regulatory compliance, finance, infrastructure, and other challenges faced by MSMEs.

The existing facilitation council in Panchkula, which has been responsible for handling grievances across the entire state, might have faced challenges in effectively catering to the diverse needs of MSMEs spread across different districts. By decentralizing the facilitation process, MSMEs can benefit from localized support and expertise tailored to the specific conditions and requirements of each district.

 

While the official notification regarding the establishment of these facilitation councils is pending, it is expected to bring more clarity on the functioning, structure, and operational details of these councils. MSMEs in Haryana should closely follow the updates and engage with the facilitation councils once they are established to make the most of the available support.

Haryana Govt constitutes MSE Facilitation Council

Efforts like the establishment of facilitation councils demonstrate the commitment of the Haryana government to promote the growth and development of MSMEs in the state. By facilitating a conducive business environment and providing dedicated platforms for grievance redressal, the government aims to encourage entrepreneurship, boost investment, and contribute to the overall economic development of Haryana.

It is important for the government to ensure that these facilitation councils are adequately staffed, equipped with the necessary resources, and empowered to effectively address the concerns of MSMEs. Additionally, promoting awareness about the existence and functions of these facilitation councils among MSMEs and providing them with the necessary guidance to access these support mechanisms will be crucial for their success.

In conclusion, the establishment of MSE facilitation councils in every district of Haryana holds promise for improving the ease of doing business for MSMEs. This step is expected to enhance support, address grievances, and foster a more conducive business environment for MSMEs, ultimately contributing to their growth and the overall development of the state’s economy.

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The introduction of MSE facilitation councils in each district of Haryana, with authority to settle cases related to delayed payments, is a significant development for MSMEs. These facilitation centres are crucial in ensuring timely payments to MSMEs and addressing their grievances against buyers.

By acting as arbitrators, the facilitation councils provide a fair and impartial platform for MSEs to seek resolution for issues arising from delayed payments. MSEs can file cases against their buyers, presenting evidence of the pending dues, and the facilitation councils will evaluate the matter.

Under the new provisions, the district facilitation councils will have the authority to settle cases where the dues to MSEs amount to less than Rs 20 lakh. This threshold allows for the speedy resolution of smaller payment disputes, as they can be addressed at the district level, saving MSMEs time and resources.

For cases exceeding Rs 20 lakh, the concerned enterprise must report the issue to the State Facilitation Council headquartered in Panchkula. This ensures that higher-value patients receive appropriate attention and can be addressed at a higher level with broader jurisdiction.

The establishment of district facilitation councils provides MSMEs with a local avenue for resolving payment disputes, reducing the need for them to navigate complex legal processes or pursue expensive litigation. The councils’ role in facilitating the payment of dues and accrued interest by the buyer is particularly significant, as it ensures that MSMEs receive the compensation they are rightfully owed.

By streamlining the resolution process and expediting payments, the MSE facilitation councils contribute to improving the financial health and stability of MSMEs. Timely payments allow MSMEs to manage their cash flow effectively, meet their financial obligations, and invest in growth initiatives.

The government needs to ensure that these facilitation councils are equipped with the necessary resources and expertise to handle the cases efficiently. The council members should receive Adequate training and support to ensure fair and unbiased arbitration.

Overall, the establishment of district facilitation councils in Haryana strengthens the ecosystem for MSMEs by providing an accessible mechanism to address payment-related issues. These councils create a conducive business environment that fosters trust, transparency, and financial stability for MSMEs, ultimately supporting their growth and sustainability.

The composition of the District Facilitation Council in Haryana, as described, reflects a well-rounded approach to addressing the needs of MSMEs. Including diverse members with expertise in legal matters, accounts, finance, and MSE associations ensures a comprehensive understanding of the challenges MSMEs face and enables effective resolution of payment-related disputes.

The leadership of the Additional Deputy Commissioner in the council brings administrative authority and the ability to coordinate and oversee the facilitation process. Their role in guiding the council’s activities and ensuring the implementation of decisions is crucial.

The presence of a legal department representative strengthens the council’s understanding of the legal aspects related to delayed payments and dispute resolution. Their expertise will help ensure that the proceedings follow the appropriate legal framework, promoting fairness and adherence to the law.

Including an individual with knowledge of accounts brings financial expertise to the council. This member can assess the financial implications of delayed payments, evaluate the accrued interest, and provide valuable insights into the financial aspects of the cases.

The presence of a finance expert further enhances the council’s ability to assess the financial impact on MSMEs and buyers. Their expertise can help analyze the financial viability of proposed solutions and contribute to fair and equitable settlements.

The involvement of a representative from the District MSE association strengthens the council’s connection with the MSME community. This member can provide insights into the specific challenges faced by MSMEs in the district, advocate for their interests, and ensure their concerns are adequately addressed during the arbitration process.

The amendment of the Haryana Micro and Small Enterprises Facilitation Council Rules to establish facilitation centres in every district of Haryana demonstrates the government’s commitment to supporting the MSME sector. By bringing the resolution process closer to MSMEs, the government aims to enhance accessibility, reduce bureaucratic hurdles, and facilitate timely resolutions.

It is crucial for the facilitation centres to operate efficiently, maintain transparency, and maintain a fair and unbiased approach. Adequate training and resources should be provided to the council members to ensure they are equipped to handle their responsibilities effectively.

Establishing facilitation centres in every district of Haryana is a positive step towards creating an enabling environment for MSMEs. It signifies the government’s recognition of the challenges faced by MSMEs in obtaining timely payments and their commitment to addressing these issues. By providing a local platform for dispute resolution, the facilitation centres can contribute to the growth and development of the MSME sector in Haryana.

The exclusive service of the MSE District Facilitation Councils for formal MSEs registered on the Udyam platform in Haryana aligns with the government’s focus on supporting and empowering registered MSMEs. By targeting registered enterprises, the facilitation councils can ensure that their services are provided to businesses that have fulfilled the necessary regulatory requirements and are recognized by the government as formal entities.

The large number of registered MSMEs in Haryana, especially micro-enterprises, highlights the significance of providing dedicated support to this sector. Micro-enterprises form a significant portion of the MSME landscape and often face unique challenges due to their size and limited resources. By catering specifically to these enterprises, the facilitation councils can address their specific concerns and promote their growth and sustainability.

Including small and medium enterprises in the scope of the facilitation councils acknowledges the diverse needs of different types of MSMEs. Small and medium enterprises may have additional complexities and requirements compared to micro-enterprises, and the facilitation councils can provide targeted assistance to these enterprises in resolving payment-related issues.

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By focusing on registered MSMEs on the Udyam platform, the facilitation councils can leverage the data available through the registration process to ensure transparency and accuracy in resolving disputes. This approach helps prevent potential misuse of the facilitation process and supports the credibility of the council’s decisions.

The government needs to continue promoting awareness of the Udyam registration platform and its benefits among MSMEs in Haryana. Encouraging more enterprises to register on the forum will enable them to avail themselves of the services provided by the facilitation councils and provide them with access to various government schemes, incentives, and support mechanisms.

The establishment of MSE District Facilitation Councils exclusively for registered MSMEs on the Udyam platform is a positive step towards fostering a conducive business environment and supporting the growth of the MSME sector in Haryana. By providing dedicated assistance and resolution mechanisms for payment-related issues, the facilitation councils can contribute to the overall development and sustainability of registered MSMEs in the state.

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