Punjab will present the 'Law of the right to business' to reduce regulatory compliance for MSMEs

Chandigarh, December 2 () The Punjab Cabinet approved on Monday the introduction of the Punjab Business Law Act of 2019 with the objective of reducing the regulatory compliance burden for micro, small and medium enterprises (MSMEs).

The government has decided to incorporate the Punjab Business Law Act 2019 and the Punjab Business Law Rules 2019 to reduce the regulatory compliance burden by waiving the requirement of certain approvals and inspections for the establishment and operations of the MSMEs in the state when introducing the self-declaration provision, the state government said in a statement.

Under the new Law, a state nodal agency will be established under the Director of Industries and Commerce to oversee and oversee the overall operation of the nodal agency at the district level, which will be in charge of the deputy commissioners, according to the statement.

The deputy commissioners have been appointed as the executive directors of the company's district offices, which will be established throughout the state, he said, adding that they would act as district-level nodal agencies that would operate under the general supervision of the state government. and the nodal state agency.

Nodal agencies at the district level would help MSMEs keep a record of the Statement of Intent received, and issue a Certificate of Approval of Principle to new businesses, which will be established in approved industrial parks, he added.

For the MSME units proposed outside the approved industrial parks, the decision on the issuance of the 'Certificate of approval in principle' would be taken by the nodal agency at the district level within a period of 15 business days, he said.

Punjab currently has approximately 2 units of lakh MSME.

In addition, the Cabinet also approved several amendments to the Factories Act of 1948, the Industrial Disputes Act of 1947 and the Labor Contract Law (Regulation and Abolition) of 1970.

The Cabinet has given its approval to certain amendments, as well as to the insertion of the new section 106 B in the Factories Act of 1948, through the promulgation of an ordinance, according to the statement.

The ordinance will increase the threshold limit of the number of workers from 'ten' and 'twenty' to 'twenty' and 'forty', in factories with manufacturing processes that are carried out with or without the help of power, respectively.

This will help promote the establishment of small manufacturing units to create more employment opportunities for workers, he said.

In addition, it is proposed to amend the existing subsection (1) of section 105 in the sense that the court will be aware of any crime in the case of a complaint filed by an Inspector only after obtaining a prior written sanction from the state government, he said.

In accordance with the current provisions of the Law, there is no provision to aggravate crimes, resulting in a large number of prosecution cases.

To quickly eliminate crimes and to minimize litigation, it is proposed to insert a new provision to aggravate crimes, he added.

The Cabinet also approved an amendment to Section 25K (1) to increase the minimum number of workers to apply the provisions regarding layoffs, staff reduction and closure to 300 of 100, while ensuring a minimum three month notification period. , according to the statement. The Cabinet also approved amendments to the Labor Contract Law (Regulation and Abolition), 1970, which will help boost employment generation in the state by improving the scope of the Law from the current limit of 20 to 50 workers. CHS VSD RVK