TANSTIA-FNF Service Centre (TFSC) on Tuesday submitted a draft ‘exit policy for Micro and Small Enterprises' (MSEs), urging the State government to pass legislation for providing a safe exit route for unviable enterprises.
The draft policy was handed over to P. Selvam, Additional Chief Secretary, MSME Department, by T.S. Dhanapalan, Chairman, TFSC, at a ‘Dissemination Meet' organised by TFSC and Friedrich Naumann Stiftung Fur die Freiheit.
The meet called for formulating a legislation to set up a Committee on the lines of welfare board, Tribunal for Settlement of Stressed Assets (TSSA), rehabilitation fund, rehabilitation board and a time-bound processing mechanism. In his presentation, Yerram Raju, Consultant, TFSC, said that the exit policy was meant to provide relief to MSEs for reasons such as failed business plans; entrepreneur not knowing how to dispose of the surplus after retirement; firms with family disputes; failure to receive any help from financial institutions and banks; ageing enterprises with no prospect of a successor and failed public programme.
A. Shanmugavelayuthan, past president, TANSTIA, and D.E. Ramakrishnan, Member, Prime Minister's Task Force on MSME, spoke.
