The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 to provide for facilitating the promotion and development and enhancing the competitiveness of micro, small and medium enterprises and for matters connected therewith or incidental thereto.

The Ministry of MSME provides various other services to enterprises fall under MSMED Act, 2006. Some of those services are

  • MSME SAMBANDH
  • MSME SAMADHAN
  • MSME Technological Centres (MSME TCs)
  • MSME SAMPARK

1. What is MSME SAMBANDH?

The MSME SAMBANDH is the Public Procurement Portal launched by Central Government for the MSME. The main objective to launch this portal is to monitor the implementation of the Public Procurement from MSEs by Central Public Sector Enterprises (sambandh.msme.gov.in).

The Ministry of MSME came with the Public Procurement Policy for Micro and Small Enterprises (MSE) Order, 2012 on 26th March 2012 which has mandated that every Central Ministry/Department/PSU shall set an annual goal for procurement from the MSE sector at the beginning of the year, with the objective of achieving an overall procurement goal of minimum 20% of the total annual purchases from the products or services produced or rendered by MSEs

The following amendments were made by the Ministry in the Public Procurement Policy for the Micro and Small Enterprises (MSEs) Order, 2012 on 9th November, 2018:

  • The word “20%”, wherever they occur, the figures and word “25%” shall be substituted; and
  • Special provision for Micro and Small Enterprise owned by women. Out of the total annual procurement from Micro and Small Enterprises, 3% from within the 25% target shall be earmarked for procurement from Micro and Small Enterprises owned by women.

2. What is MSME SAMADHAN?

Ministry of MSME has taken an initiative for filing online application by the supplier MSE unit against the buyer of goods/services before the concerned MSEFC of his/her State/UT.

MSME SAMADHAAN is an online Delayed Payment Monitoring System, governed by the Micro and Small Enterprise Facilitation Council (MSEFC) for settlement of disputes on getting references or filing on Delayed payments by aggrieved MSMEs. Filing can be done online through MSME SAMADHAN portal (samadhaan.msme.gov.in) and the status of filing can be checked online.

Related Provision

The MSMED Act, 2006 contains provisions of Delayed Payment MSEs from Section 15 to 24. As per the provisions of Section 20 & 21 the State Governments to establish Micro and Small Enterprise Facilitation Council (MSEFC) for settlement of disputes on getting references/filing on Delayed.

Nature of assistance

MSEFC of the State after examining the case filed by MSE unit will issue directions to the buyer unit for payment of due amount along with interest as per the provisions under the MSMED Act 2006.

Who can apply?

Any Micro or Small enterprise having valid Udyog Aadhar Memorandum(UAM) can apply.

Salient Features

As per provisions of Section 16 of the MSMED Act, 2006, the buyer is liable to pay compound interest with the monthly rests to the supplier on the amount at the three times of the bank rate notified by RBI in case he does not make payment to the supplier for his supplies of goods or services within 45 days of the acceptance of the goods/service rendered.

State Governments to notify the following

  • Authority for filing Entrepreneur Memorandum;
  • Rules of MSEFC; and
  • Constitution of MSEFC.

Every reference made to MSEFC shall be decided within a period of 90 days from the date of making such a reference as per provisions laid in the Act.

As per provisions of Section 19 of the MSMED Act, 2006 if the Appellant (not being the supplier) wants to file an appeal, no application for setting aside any decree or award by the MSEFC shall be entertained by any court unless the appellant (not being supplier) has deposited with it, the 75% of the award amount.

Implementation

The provisions under the Act are implemented by MSEFC chaired by Director of Industries of the State /UT having administrative control of the MSE units. State Government/UTs are requested to ensure that the MSE Facilitation Council hold meetings regularly and delayed payment cases are decided by the Councils within a period of 90 days as stipulated in the MSMED Act, 2006.

3. What is MSME Technology Centre (MSME TC)?

  • Ministry of MSME, in its endeavour to provide the right stimulus for the growth of MSMEs in the country has established 18 Technology Centres (earlier known as Tool Rooms & Technology Development Centres). These Technology Centres (TCs) have been established and are operational some of them are as given below:

1. Central Footwear Training Institute, Agra

2. Indo German Tool Room, Ahmedabad

3. Central Institute of Hand Tools, Jalandhar

4. Process cum Product Development Centre, Meerut

5. Institute for Design of Electrical Measuring Instruments, Mumbai

6. Electronics Service & Training Centre, Ramnagar   etc

  • These TCs are serving industry by way of providing quality tools, trained personnel and consultancy services in tooling & related areas, upgradation of technologies in processes & products in the specific product groups such as Forging & Foundry, Electronics System Design & Manufacturing etc. to support these sectors.
  • The TCs adhere to the principles of Total Quality Management and are ISO 9001 certified institutions. Some of the TCs are ISO14000 (Environmental), OHSAS 18000, ISO 29990 (Vocational Training) and ISO 50001(Energy efficiency).
  • The TCs conduct various courses / training programmes to provide industry ready workforce and skill enhancement for trainees ranging from school dropouts to M-Tech level. At present, 76 courses being conducted by MSME TCs are National Skill Qualification Frame work (NSQF) compliant. The courses offered by TCs are well accepted by the industry across the country and abroad, for employment purposes.

4. What is MSME Sampark?

  • The MSME Sampark portal is a digital platform, wherein, jobseekers (passed out trainees / students of 18 MSME Technology Centres) and recruiters (various reputed national & multinational companies) register themselves for getting employment and getting right kind of manpower respectively.
  •  MSME TCs have been one of the key contributors to the Make in India initiative by contributing in various verticals such as Aerospace, Automobile, Electronics, Glass, Footwear etc. These Centres are providing training to around 1.5 lakh students annually and most of them are being absorbed by industries within the country as well as abroad.
  • Skill Development is only one half of the challenge, finding the right employment opportunity for this skilled youth, is yet another. While major corporates have well-defined recruitment processes with a national reach, the challenge remains for small businesses and entrepreneurs to find the right person for the job with relevant experience and skill-set. On the other hand, the job seekers struggle to match their skill sets with the role, position, required experience, monetary expectation, location & industry verticals leaves with too many parameters to be matched in a limited opportunity map. To bridge this gap between the Recruiters and Job Seekers, The Ministry of MSME has launched – MSME SAMPARK.

5. How it works?

1. For Recruiters

  • One has to register in the portal with basic minimal information and need to update profile post registration, which will help them to have better reach to trainees of MSME TCs (Job seekers).
  • In case of any issue, they may contact the centre to expedite registration. The existing recruiters of TCs and contact centre will exchange their user credentials to their contact person. You will be asked to change your password after your first login.
  • Recruiters may approach contact centre for their job postings without self registration and necessary assistance will be provided in registration and job posting
  • Recruiters can do a candidate search without registration also, however to contact the candidate registration is must. 

2. For Candidates 

  • One has to register in the portal with basic minimal information and need to update profile post registration which will help the candidate to have better reach to recruiters.
  • Candidate need to provide name, institute name & date of birth for registration.
  • Candidates with incorrect credentials / data feeding would not be allowed to further register themselves on the portal and access will be denied.
  • Candidates may carry out job search without registration, however, cannot contact the employer without registration in portal.

Abbreviations:

MSE: Micro and Small Enterprises
MSEFC: Micro and Small Enterprise Facilitation Council
MSME: Micro, Small and Medium Enterprises
MSMED: Micro, Small and Medium Enterprises Development
MSME TCs: MSME Technological Centres
PSU: Public Sector Undertaking
UAM: Udyog Aadhar Memorandum
UT: Union Territories

[Source: msme.gov.in]

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