International BusinessChandigarh fastner units for uniform MSMED Act
Chandigarh Industrial Fastener Association (CIFA) has sought the implementation of Micro Small and Medium Enterprise Development (MSMED) Act 2006 in letter and spirit.
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CIFA president A L Aggarwal said the Act though made clear distinction between micro and small scale units, many banks, while granting loans to fastener units, were not making such clear distinctions.
Chandigarh has around 300-325 registered and unregistered fastener units, of which 90 per cent are in micro category and 10 per cent in small category. According to Aggarwal, the fastener industry in Chandigarh generates business close to Rs 170-180 crore. Aggarwal rued that while according to MSMED Act banks should have different rates of interest for lending to the micro and small units, yet most banks in the region were giving loans to micro units at higher rates.
Aggarwal added while the Act clearly outlined that payments to micro and small units should be released in maximum 45 days within receipt of material, it was not being followed in true spirit.