(MENAFN- KNN India) Protesting the Centre's decision on de-reservation of 20 products meant for micro, small and medium enterprises (MSMEs), the Federation of Punjab Small Industries Associations (FOPSIA) attacked the government for allegedly supporting the large scale sector.
According to a media report, the federation has written to Prime Minister Narendra Modi and Union Minister of MSME, Kalraj Mishra regarding de-reserving certain items that were meant for the micro and small sector.
FOPSIA president Badish Jindal said that in yet another move to devastate the sector, the government was changing the criteria of micro and small sector.
He said that at present, micro industry has the set and machinery amounting upto Rs 25 lakh and the small sector is up to Rs 5 crore. However, the government is planning to increase the limit of micro sector upto Rs 1 crore and small sector upto Rs 10 crore. This is going to destroy the micro sector in the country and this is being done due to pressure from the large scale sector.
"Under the present criteria, 80 per cent of industry comes under micro sector, 15 per cent in small and the rest is large scale sector. Unofficial data of micro sector is even higher as only 10 per cent of the enterprises are registered with the department. To take undue subsidy benefit of micro and small sector, the large scale units are pressurizing the government to enhance the ceiling of micro and small sector so that they can remain in priority list," the report quoted him as saying.
Last month, the Ministry of Commerce and Industry announced the de-reservation of 20 products which were previously reserved for manufacturing only by the micro and small enterprises.
The products included pickles, bread, mustard oil, ground nut oil, wooden furniture, exercise books, wax candles, laundry soap, safety matches, fire-works, agarbatties, glass bangles, steel almirah, rolling shutters, steel chairs, steel tables, steel furniture, padlocks, stainless steel utensils, domestic utensils and aluminium.
Earlier, the number of reserved items was 800 that was reduced to 466 in 2006 and gradually it came down to 20 by 2012. (KNN Bureau)
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