The government is planning to introduce Bills for limited partnership and for factoring services with regard to the small-scale sector. These would be part of a comprehensive legislation for the sector, likely to be finalised this financial year, Vasundhara Raje, minister of state for small-scale industries (SSIs), said.
The limited partnership Bill will restrict the liability of the partners to the extent of the equity invested.
The Bill on factoring services will allow small units not receiving payments from larger ones to approach the banks for redressal. Banks will release up to 80 per cent of the payments to the units and then approach the debtors for payment. Both Bills are expected to help the flow of credit to the small-scale sector.