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Each state has completely different guidelines for minimal wages, working hours and for registration, Belgaum Chamber of Commerce and Trade (CCI) president Hemendra Porwal informed ET. “In some states, commerce and store licences are perpetual. In others, they should be renewed yearly, or each three years, making it tough for firms with presences in a number of states to conform,” he mentioned.
MSME guidelines, he added, ought to be centrally utilized as a lot of the advantages come from the Centre anyway. “If the competitors between the states is diminished, the nation as an entire would progress a lot quicker on this side,” he mentioned.
An MSME proprietor, not keen to be named, informed ET that the compliance delays and the penalties the corporate incurred had compelled them to close down operations in neighbouring Maharashtra simply after the pandemic. Whereas they’re now able to restart operations there, the foundations have remained unchanged.
About 23.4 million MSMEs are at present registered on the MSME ministry’s UDYAM portal. Maharashtrian enterprises high the record, with about 4 million MSMEs, adopted by Tamil Nadu at 2.3 million. Karnataka is sixth on the record with 1.33 registered MSMEs.
The precise quantity is way larger, Pratik Vaidya, president of the Maharashtra chapter of the SME discussion board, informed ET. With out a single window registration system, most enterprises don’t register and they’re not noted of the various advantages the federal government has for MSMEs, together with collateral free-loans, reservation in authorities procurement, exemption from having to pay Earnest Cash Deposits (EMD) whereas competing for presidency tenders, the MD of Karma Administration International Consulting Options mentioned.
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