The micro, small and medium enterprises (MSME) task force, formed to suggest steps to help the sector brave the impact of global crisis, is likely to submit its report to Prime Minister Manmohan Singh on February 5.
“We may submit the report to the Prime Minister on February 5,” Micro, Small and Medium Enterprises Minister of State (Independent Charge) Dinsha Patel said at the Indian Marketing Summit, jointly organised by Birla Institute of Management and Technology and Milagrow.
The task force, formed by the Prime Minister in September 2009, is headed by his Principal Secretary T.K.A. Nair.
Patel said, the report of the task force is based on recommendations submitted by seven sub-committees, which were constituted to look into the different aspects of the small and medium sectors.
These sub-committees deliberated on issues like credit, infrastructure, taxation and labour laws.
The task force is likely to press for easy bank funding, preferential treatment by public sector undertakings (PSUs) and benign tax regime for the sector.
A Committee of Secretaries has also been looking into the issue of preferences for MSMEs in the PSUs. The small and medium enterprises have been demanding minimum 20 per cent reservation in the non-strategic PSU purchases.
The MSME sector, which employs 42 million people, contributes about 45 per cent to India’s total manufactured output and close to 40 per cent to the country’s exports.