Govt Working On Comprehensive Grievance Redressal System, Reform Legislation For Msmes, Says Secretary

(MENAFN- KNN India) New Delhi, Jan 6 (KNN) The government is working on a multi-pronged plan for a comprehensive grievance redressal system for MSMEs and holding consultations with the industry for bringing reform in the existing law governing the sector, said Mr S.C.L Das, Secretary, Ministry of Micro, Small and Medium Enterprises (MSME).

In his address at national conference on strengthening the legal and regulatory architecture for growth of MSMEs jointly organised by Federation of Indian Micro and Small & Medium Enterprises (FISME) and Friends of MSMEs in Parliament, Mr Das said that the proposed move is aimed at mitigating the pain points for the sector and strengthening the growth enablers.

"In addition to this, there are also discussions on Insolvency and Bankruptcy Code (IBC) and that is one place where the Ministry has been very strongly supporting the case of MSMEs," the Secretary said.

"In the waterfall mechanism, basically MSMEs don't get a droplet of that (hypothetical) waterfall. As operational creditors and unsecured creditor, they pretty much don't get anything. So the Ministry has been advocating before various forums and we are hopeful that the Government of India as a whole is very sensitive to this aspect. It's not only this Ministry but, equally, Ministry of Corporate Affairs, Ministry of Finance and other stakeholders we are all collectively endevaouring to work towards a system where MSMEs get an equitable deal in terms of dues which are there," Mr Das stated.

In his welcome address at the conference, FISME President Sandeep K Jain underlined the need for AI-driven integrated grievance redressal framework where responsibilities are clearly mapped and outcomes are transparently monitored..

He stated that such a framework anchored in a strong Centre-state partnership could be one of the most transformative reforms for India's MSMEs.

Mr Jain noted that the proposed grievance redressal mechanism would be able to capture grievances across both Central and State jurisdictions through a single-window system, intelligently route them to the appropriate authorities-whether at the Centre, States, regulators or banks-track timelines, flag delays and enable escalation.

"FISME and MSME community stands fully prepared to partner with the government for conceptualising the mechanism and piloting it," Mr Jain said.

He also drew attention of the government towards issues related to GST being faced by small businesses especially notices for minor, procedural or interpretational issues and called for their resolution through an institutional mechanism to ensure GST reforms at macro level also reflect on the ground.

(KNN Bureau)

MENAFN06012026000155011030ID1110563611