NATIONAL CONFERENCE ON LEGAL REFORMS FOR RESURGENCE DATE : 6.5.2000
VENUE: ROOM NO.1, REPORT ON PROCEEDINGS
The subject matter is very loaded - time at our disposal was very short i.e. only 5 days where in which the responsibilities on us were
Since the topic is of relevance to us in terms of Legal Research we have taken it as a challenge and coordinated with NISIET to conduct in a successful manner. Had the time was little more we could have achieved our goal with some more satisfaction. However with all the constraints high quality discussions were held and lot of leads and directions were thrown to take up for further research.
Conference was chaired by Sri G.M.Ambhoreji, Director of SISI who has conducted the programme in a befitting manner.
Dr. R.N.Biswal, Director, Centre for Policy Research NISIET has taken the efforts in organising the hall, lunch arrangements and compered the programme being assisted by Mr.Balla and
Mr. Ramesh.
Following are the distinguished speakers who have made an excellent presentation inspite of the short notice.
Unfortunately there was a heavy rain and power cut and absence of many entrepreneurs due to various reasons.
Sri Ambhore has given his introductory remarks about the reference of the topic and need for the rationalisation of legal procedures for the growth and development of SMEs.
Sri. S.Lakshma Reddy, Advocate having distinguished standing at the High Court and Tribunals for over two decades experience and Director of A.P. Legal Services (p) ltd. Legal Services triggered off the discussion by presenting his novel concept of 'Seperation of Powers' in the Indian Context where in which the entrepreneur's business and professional interests are jeopardised by the concentration of powers vested in various Govt officials who will make subordinate legislation, register the pleas, applications, listens to the grievances, takes executive decisions, impose penalties. In the sense the same person is vested with the analogous legislation, execution and judiciary powers.
Here is the question of competence of person and conflicting interests of the different agencies
culminate in the multitude of owes to the interests of SMEs. In the light of successful contribution of SMEs to the tune of 80% to the production in USA and the role played by SMEs in other countries such as Japan, Germany,Switzerland, Taiwan we should understand the legal structures in the respective countries which were instrumental for the promotion of SMEs and not hindering
and detrimental to their interests. Mr. Lakshma Reddy wants to establish the corelation between economic forces and legal structures for the increased productivity,cost reduction and cutting down delays. His paper is enclosed herewith. When the participants started discussing on the concept of seperation of powers, the Chief Guests interacted and asked them to have the discussions during the brain storming sessions.
Mr.V.G.L.Chary, Dean of ICFAI has delivered the lecture on 'Restructuring of SMEs under Global Environment'. He stated that the vision of the company leads to growth but when the technological obsolence sets in and if refusal to change takes place then it leads to stagnation and in further stage to decline. To arrest the trend of decline company should go for a new vision which results in renaissance and further growth. Technological changes brought in importance of service sector which is contributing to the major portion of GDP of the nations.
In light of changes taking place due to liberalisation, privatisation, globalisation, dereservation of industries from 'Reserved List' and the removal of 'Quantitative Restrictions' under the provisions of GATT/WTO norms now Indian SMEs should view and reposition themselves and enter into sunrise sectors like IT, IT enabled services, Bio-technology, Genetic Engineering etc and also modernise the traditional sector units using the latest convergence technologies, modern management principles. Further he stressed on the importance in productivity, quality standards and paradigm shift of mindset to catch up the world markets.
Sri. C.P.Ramaswamy, Addl Commissioner, Income Tax Dept has delivered lecture and pointed out the various anomolies in the definition of SSIndustry itself.SSI unit is defined in seperate ways, by Industry, IT, Central Excise & Customs and Labour Departments. There are certain anomolies in viewing the sales tax incentives as income as being offered by various state Goverments such as Gujarat, Maharastra, Karnataka and Andhra Pradesh Important point he noted was that the 'Law should be easy to understand and should be Implementable' For a question on the desirability of subordinate legislation which is creating cobwebs and anomolies to the application of rules and procedures to the units functioning he replied in negative. He says that any legislation can't legislate the comprehensive law dealing in all situations and times at best the legislation can give broader scope but details have to be brought in through subordinate legislation.
But we at A.P. Legal Services (p) ltd.Legal Services strongly feel that the checks and balances to be provided from higher levels to district level functionaries.
Sri. Prashant Kumar, Joint Director of Central Excise and customs also mentioned the various simplification procedures brought in by the excise dept.
Sri. Subba Rao, General Manager(Law) of APIDC, Hyderabad has given the detailed account of various enactments and returns to be submitted to authorities and registers to be maintained and continuous harassment of entrepreneurs by the Inspector Raj. He stressed the point that inspite of the Liberalisation, Privatisation and Globalisation the mindset of officialdom has not changed to facilitate growth and development. He appreciated the initiative taken by A.P. Legal Services (p) ltd.Legal Services(p) Ltd and Centre for Policy Research NISIET towards this direction for the Rationalisation of Legal Frame work.
Mr. Nirmal Kumar Prasad Asst. Commissioner of Labour reacting to Sri.Subba Rao's presentation made clear that lot of changes have been brought in the labour department.
However he also opined that there is need of further liberalisation. He informed that the SSI units can submit single return in respect of Labour Provisions and the duplicity has been removed. He expressed the view that total decontrol will damage the interests of the labour who are forming part of important element of factors of production. Sri. KVS Sarma Asst Professor of NALSAR
presented his paper on the different categories of SSI sector and expressed the need for support and funding of tiny sector units.
Mr.K.R.Pundit Sr.Consultant of NCAER has given his observations and the work undertaken by various agencies in this direction and impending changes going to take place in couple of months time.
Suggestions of the Conference :
1. No definition for Medium Enterprises.
2. Factory Act need to be amended from 10 to 25 or 30 persons.
- Mr. Pundit NCAER
3. Review & Rationalisation of existing Industrial Laws Justice Delivery System to be strengthened. Delays to be reduced drastically.
- Mr. Goswami, Andhra Bank
4. Single Proforma by the unit to be maintained at DIC for all Depts. No Registers to be maintained.
- Mr. Pundit, NCAER
5. Statutory Registers not more than 3.
6. Redundant Irrelevant Acts to be repealed.
7. IPRs to be protected pertains to SMEs
- TRICONS
8. Child Labour not to be employed
9. Eco-friendly processes to be encouraged.
- Mr. K.S.R. Murthy
10. Gain Confidence in Bank,Misappropriation of Hyphotheca and diversion of funds to be made as a criminal offence.
- SBI, BOB, Andhra Bank
11. Compulsory Submission of stock Returns.
- SBI
12. Simpilfication of Application Forms
13. Govt Institutions should come under the Delayed Payments Act.
14. Timely & Adequate credit availability to SMEs.
15. Transperancy in each dept - Time Limit to be prescribed for clearence at all departments and organisations.
16. Protection for workers
- Mr. Niramal Kumar Prasad
Asst.Commissioner of Labour
17. Rationalisation Procedures to be done at the stages of
18. Incubator Scheme to be sanctioned in 2 months.
LIST OF PARTICIPANTS
1. Mr. K.R.Pandit- Sr.Consultant, NCAER, New Delhi
2. Mr. M.Venkateswarulu - Sr. Manager, PS Dept.
Bank of Baroda, Mumbai
3. Mr. Prasad -
4. Mr. Ravinder - Swastik Colour, Aditya Labratories,
Hyderabad
5. Mr. Vishnuvardhan Reddy -
6. Mr. C.Niranjan Reddy -
7. Mr. D.S.Sharma -
8. Mr. S.Lakshma Reddy,Director - A.P. Legal Services (p) ltd.Legal Services(p)Ltd
Hyderabad
9. Mr. S.Subba Rao - G.M,APIDC
10.Mr. M.V.Janakiram - SBI, Hyderabad
11.Mr. D.Divakar - Dy. Manager, SBI, Hyderabad
12.Mr. A.V.Ganga Reddy - Dy.Manager, SBI, Hyderabad
13.Mr. A.Srinivas Murthy - Advocate,Tricons,Hyderabad
14.Mr. K.V.Prasad - Advocate, Tricons, Hyderabad
15.Mr. KVS Sharma - Asst. Professor, NALSAR, Hyderabad
16.Ms. P.Lakshmi - Advocate, Hyderabad
17.Mr. T.Bal Reddy - Advocate, Hyderabad
18.Mr. A.K.JayaPrakash Rao - Advocate, Hyderabad
19.Mr. Malla Reddy - Industrial Promotion Officer, DIC
Hyderabad
20.Mr. K.Nirmal Kumar Prasad - Asst. Commissioner
Hyderabad
21.Mr. M.V.Sudhir Kumar - SISI Balanagar, Hyderabad
22.Mr. G.M.Ambhore - Director,SISI Balanagar, Hyderabad
23.Mr. K.V.Satyanarayana - APIDC, Hyderabad
24.Mr. Goswamy - Andhra Bank ,Hyderabad
25.Mr. C.P.Ramaswamy - Addl. Commissioner,IT,Hyderabad
26.Mr. Prashanth Kumar - Joint Commissioner,
Customs & Central Excise, Hyderabad
27.Mr. VGL Chary - Dean, ICFAI, Hyderabad.
OF
SMALL AND MEDIUM ENTERPRISES IN COLLABORATION WITH
Centre for Policy Research, NISIET, Hyderabad.
NISIET, HYDERABAD.
· to understand the concept
· organise the key speakers
· organise participants
· help in mobilising resources
a. Starting of SSI unit
b. After starting of SSI unit
- Mr. Pundit of NCAER, New Delhi
25% contribution by promoter
75% by Govt
3 Years Holiday ( Israel Model )
- Mr. Venkateshwarulu
Bank of Baroda Central Office, Mumbai.