The Small factories Regulation Bill steps in the right direction to improve the ease of doing business in India. The act mergers labour law relating to Micro Small Medium Enterprises (MSME) into a single law. MSME sector holds a vital role in employment as it’s a labour-intensive sector.
About a 45 percent of manufacturing output and 40 percent share industrial exports come from MSME sector. Thus contributing to about 8 percent of India’s Gross Domestic product. Archaic regulations have been hindered the growth in this sector for a long time.
The Government of India is playing the best of its cards to reduce business bottlenecks faced by small industrial ventures. Small and micro level industries can act open a new paradigm of employment creation.
Micro and Small industries are expected to create huge opportunity skilled and semi-skilled labour under the auspices of Make in India.
Amendments in the new bill are as follows:
The latest revision proposed are simplified penal provisions in the labour laws for the small scale sector. Merging laws into groups so as to remove multiple provisions in different laws.
Ministry of Law and Justice has already scrutinised this act that regulates employment and other service conditions of employees of small factories.
The law simplifies formation and exit procedure for factory owners, they can register and even close down their factories by an e-notification to the authorities concerned.
Also, mandatory registration micro or small factory must be done within 60 days of operation startup after paying the prescribed fees. For factory closure owner/ employer needs to electronically notify the chief inspector within 15 days of closing the factory.
