Guwahati: With concern being expressed from different quarters, Assam Industries and Commerce Minister Chandra Mohan Patowary clarified MSME ordinance will no way override the existing land laws and lands of indigenous people will be in no way affected.
Assam has drafted an ordinance whereby micro, small and medium enterprises (MSMEs) will not be required to take permissions for setting up MSMEs units in the state for next 3 years and awaiting nod from the Governor.
Patwary said that ordinance approved by the Cabinet will be a huge game changer and aid Ease of Doing Business in Assam.
This Ordinance will not affect the land rights of indigenous people of Assam as protected by the Assam Agricultural Land (Regulation of Reclassifications and Transfer for Non-Agricultural Purpose) Act 2015. This Ordinance does not affect the restrictions on sale or transfer of agricultural land for non-agricultural purposes as protected under the aforesaid Act. This Ordinance does not allow any person to buy or sell any agricultural land for non-agricultural purposes. The bar of agricultural land used or transferred for non-agricultural purpose as provided under the aforesaid Act shall remain as it is and this Ordinance will not affect it at all. In other words, agricultural land will remain with the agriculturalists only, he said.
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He added that due to COVID-19 pandemic, the state economy has adversely been affected and the business environment is also very depressing. In such situations, the Ordinance will create a conducive environment, drive the domestic growth, attract investment and accelerate industrial development in the State. After notification of the Ordinance, the entrepreneurs will not be required most of the statutory permissions for the first three years to set up their industries.
The minister said, “Assam had 20 lakh unemployed besides around 3.5 lakh has returned from outside the state. Through this ordinance we are looking to provide gainful employment to skilled manpower which has returned to the state”.
Assam Government will notify an Investment Facilitation Agency headed by the Commissioner, Industries & Commerce to facilitate establishment of enterprises in the State. Any person who intends to start an enterprise may furnish to the Nodal Agency a declaration of intent to start an enterprise with an undertaking that they will follow all the relevant provisions of all the Acts, Rules and Guidelines and ensure labour welfare measures, adequate fire safety and environmental measures as required by law. On receipt of the declaration completed in all respects the Nodal Agency shall issue an Acknowledgement Certificate.
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After getting the Acknowledgement Certificate no permission, clearance, consent, approval, registration, license, no-objection etc. under any State Law except Fire Services and Power in connection with the establishment of an enterprise in the State will be required for three years. After expiry of three years the enterprises shall be required to get all such clearances and permissions within next six months of the period. The enterprise will also be free to apply for permission, clearances etc. any time even before the completion of three years of period.
The minister stated the Ordinance does not deal with sale or purchase of any type of land. It does not allow any person to buy or sell any agricultural land for non-agricultural purposes.
“Any apprehension that an entrepreneur under the provisions of this Ordinance will buy agricultural land for non-agricultural purposes is totally unfounded. It simply provides that if only genuine owner of the agricultural land intends to set up an MSME unit, his agricultural land which is eligible and capable of reclassification as per the provisions of Assam Agricultural Land (Regulation of Reclassifications and Transfer for Non-Agricultural Purpose) Act 2015 will be deemed to be non-agricultural land only for three years”.
He said that during that period or within the next six months of expiry of three years, the person will have to get his land converted into non-agricultural land, following all prescribed procedures and after payment of requisite premium as prescribed in the Assam Agricultural Land (Regulation of Reclassifications and Transfer for Non-Agricultural Purpose) Act 2015. Deputy Commissioner will allow the conversion of agricultural land for non-agricultural purposes strictly as per the provisions of aforesaid Act.
As per provisions of the Ordinance the Acknowledgement Certificate shall not entitle a person to use a land in deviation to the land use specified in the Master Plan wherever such plan is in force. It shall also not entitle a person to use the land falling in restricted category viz- Public Grazing Reserve (PGR), Village Grazing Reserve (VGR), Wetlands, Eco-Sensitive Zones, Heritage, Historical, Archeological Sites and land settled, allotted or reserved for Religious Institutions like Satras, Namghars, Temples, Wakfs, land under Tribal Belts and Blocks etc.The exemption from approval for three years shall be provided in respect of State Acts and Rules only.
He added, “An enterprise cannot setup an industry related to hazardous products without obtaining prior permission as it is mandatory under the Central Act. This will not be applicable for large industries where the investment in the industry is more than Rs. 50 Crores. Only a few States like Gujarat, Rajasthan and Karnataka have brought out such ordinance and acts to facilitate and the setting up of Micro, Small and Medium Enterprises”.
MSME Reporter is an initiative to support MSME sector units. Use www.msmereporter.com for important announcements such as policy changes, schemes, tenders, notifications, norms, circulars, opportunities etc. relevant for Entrepreneurs. Feel free to share our updates with your connects to strengthen the MSME fraternity.
