The Federation of Association of Small Industries of India (FASII) today demanded action from the Union Ministry of MSME against "erring" medium and large industrial units which are making items reserved for micro and small industries.
The Federation has lodged a complaint with the Ministry for Micro, Small and Medium Enterprises (MSME), seeking "closure of big units" which manufacture items reserved for micro and small units and launch of a nationwide investigation to identify companies violating the provisions of the MSME Act.
Micro unit is a unit which has investment in plant and machinery of not more than Rs 25 lakh while small unit has investment of not more than Rs 5 crore.
"Medium and large scale industries can not manufacture items which are reserved only for micro and small industries but we have seen that units which are in medium and large scale categories are also into manufacturing of these products which is a sheer violation of the law," FASII President Badish Jindal said today.
"Some large companies are involved in manufacturing of bread, sauces, pickles, in Punjab and also some companies are manufacturing mustard oil, stainless steel and aluminium utensils, laundry soaps, exercise books, padlocks, safety matches, wooden and steel furniture," he claimed.
"Any unit whose investment limit crosses its plant and machinery limit of Rs 5 crore cannot manufacture reserved products," he said, adding that medium and large scale companies had no right to tap opportunities meant of micro and small industries.
MSME Director Punjab S S Dhillon said he had received a complaint in this regard from FASII.
"We will be writing to the MSME ministry soon and we will also write to Punjab government to implement the MSME law wherever there is a violation taking place," he said.
Dhillon said items reserved for micro and small units cannot be manufactured by medium and large units.
Items exclusively reserved for micro and small enterprise category are bread, sauces, pickles, mustard oil, groundnut oil, wooden furniture, steel chairs, steel furniture, padlocks, stainless steel utensils and domestic utensils-aluminum.
Exercise books & registers, laundry soap, steel almirah, wax candles, safety matches, fire works, glass bangles and rolling shutters also