| The Micro, Small & Medium Enterprise Development Act, 2006 : Main Features & Implications |
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| B.3. Constitution of Advisory Committee at national level to make recommendations:— |
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level of employment in a class or classes of enterprises; |
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level of investment in plant and machinery or equipments; |
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the need of higher investment in plant and machinery or equipment's for technological upgradation, employment generation and enhanced competitiveness; |
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the possibility of promoting and diffusing entrepreneurships; |
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the international standards for classification of small and medium enterprises. |
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| B. 4. Filling of Industrial Entrepreneur's Memorandum. |
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Discretionary for a micro or small enterprise and also for a medium enterprises engaged in providing or rendering of services, |
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Obligatory (compulsory) for a medium enterprise engaged in the manufacture or production of goods pertaining to any industry specified in the First Schedule (IDR Act), |
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For medium enterprises, the Central Government shall specify by notification the authority with whom they would file memorandum, |
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In respect of micro & small enterprises the State Govt. shall by notification, specify such Authority. |
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| B. 5. Measures for promotion, development and enhancement of competitiveness of micro, small and medium enterprises. |
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Extension of credit facility for micro, small and medium enterprises, |
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Preference policies in procurement of goods and services for micro and small enterprises, |
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Provision for Central funds. |
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| B. 6. Delayed payments to micro and small enterprises. |
| The Act stipulates that the payments for supplies or services have to be cleared in favour of micro and small enterprises within 45 days of acceptances. The State Government shall, by notification, constitute one or more Micro and Small Enterprises Facilitation Council to monitor the matter of delayed payments. |
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| B. 7. Power to make Rules. |
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The Central Government may, by notification, make rules to carry out the provisions of the Act. |
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The State Government may also, by notification, make rules to carry out the provisions of the Act. |
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