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Activities Round Up

Date : 01 Nov to 01 Nov 2012
Place : New Delhi
Organised by : FISME

Finance Secretary Meets FISME Team

 

Shri R.S. Gujral, Finance Secretary, Govt. of India held discussions with FISME team on range of issues concerning MSMEs in India including Union Budget 2013-14, SME Exchange, Public Procurement and Revival of sick units.


Senior officials present during the meeting which was held in North Block, New Delhi on Nov 1st, 2012 included Shri Anurag Jain, Joint Secretary, Department of Financial Services and Shri P.K. Bagga, OSD, Department of Economic Affairs. FISME delegation was led by Shri V.K. Agarwal, President which included Past Presidents Shri Dinesh Singhal and Shri Neeraj Kedia and Shri Anil Bhardwaj, Secreatry General.   


Shri Gujaral was presented FISME’s interim Memorandum on Budget on Direct and Indirect Taxes.  Shri V.K. Agarwal especially brings forward the plight of MSMEs with regard to Central Sales Tax and C-Form to the notice of the Finance Secretary.  MSMEs find it difficult to negotiate collection of C-Forms from buyers (many a times large companies) and suffer penalties for non-collection. The harassment is exacerbated in cases where due to price escalation, a supplementary invoice is required to be raised but for which buyers refuse to provide additional C-forms.  FISME has suggested some administrative measures through which the problem could be effectively remedied. 


Presenting FISME Policy paper on SME Exchanges to the Finance Secretary, FISME requested Government intervention to persuade banks/ FIs to invest in listed SMEs to provide momentum to fledgling SME Exchanges.


FISME also requested Ministry’s assistance in catalysing implementation of two other critical recommendations of PM’s Task Force on MSMEs:  Mechanism for Revival or Closure of Sick Units and Policy for 20% Public Procurement from MSMEs in Government purchases. 


With regards to the revival of sick units and following the request of Ministry of MSME, FISME already has submitted the draft amendment in MSMED Act to develop the required mechanism.  FISME president emphasized that to operationalize Procurement Policy, an Inter-Ministerial Group is needed.  It may be recalled that at present the entire procurement in government and related department is done through General Financial Rules (GFR) issued by Ministry of Finance.