Industrialists slam changed definition of MSMEs

Coimbatore: The emphasis on the identify of manufacturers has been withdrawn from the new definition of micro, small, and medium enterprises (MSMEs) and this would pave way for traders to enter the category, industry representatives in the district said. Manufacturers, who do value addition, should be given preference, they demanded.
A notification of the ministry of micro, small, and medium enterprises (MSMEs) in 2009 mentioned that only manufacturing units using plant and machinery in the process of value-addition are eligible to get registered under the Micro, Small and Medium Enterprises Development Act, 2006, MSME industrialists said.
The changes spelled out by the notification of the MSME ministry on June 26 allow any business enterprise to get registered as micro or small unit, representatives of the Federation of Coimbatore Industrial Associations (Focia) said. “The emphasis on manufacturing has been abruptly withdrawn. The manufacturing units are equated with pure trading enterprises,” the association said in a communication to the Centre.
Traders can import products and materials to sell them at a lower cost, but they might not be of good quality, said Focia representative S Surulivel.