Home Affairs ministry's communique to the Chandigarh administration on the Micro, Small and Medium Enterprise Development Act could help small outfits switch gears to new business models.
"The implementation of the act would help the SMEs to diversify to new business models," said Naveen Manglani, a senior member of the Chandigarh Industries Association.
"When we started units manufacturing was the only option in the SME category but with the passage of time many activities in the service sector have been included in the ambit of MSMEs. Those with smaller plot have a constraint to expand manufacturing activities so they can diversify to activities which require lesser area but generate more income and employment", he added.
Despite a good location and infrastructure, the industry sector in Chandigarh has clocked lackluster growth over the years.
According to sources, the conversion policy, 2005 of Chandigarh Administration had been a roadblock for the implementation of MSME Development Act. The Association of converted Plot Owners had built pressure on the Chandigarh administration to refund an amount of conversion money (that amounts to about Rs 1,200 cr) if the MSME Act is implemented.
