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HP Micro, Small and Medium Enterprises Ordinance comes into force

The Himachal Pradesh Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Ordinance, 2019 has come into force with effect from 6 November, 2019, which will provide relief to thousands of such enterprises and make Himachal Pradesh an attractive investment destination.

Eight Acts have been covered under the Ordinance including the Himachal Pradesh Panchayati Raj Act, 1994, Himachal Pradesh Municipal Corporation Act, 1994, Himachal Pradesh Municipal Act, 1994, Himachal Pradesh Fire Fighting Services Act, 1984, Himachal Pradesh Road Side Land Control Act, 1968, Himachal Pradesh Shops and Commercial Establishment Act, 1969, Himachal Pradesh Societies Registration Act, 2006 and Himachal Pradesh Town and Country Planning Act, 1977.

The salient features of the Ordinance include the freedom given to any person who intends to start an enterprise to do so by just submitting a declaration of intent to start an enterprise. Upon receipt of such declaration, the concerned Nodal Agency i.e. General Manager, District Industries Centre/ Deputy Director of Industries, Single Window Clearance Agency, Baddi/Member Secretary, Single Window Clearance Agencies of the concerned area will issue an acknowledgement certificate. Upon receipt of the certificate, the enterprise can start working on establishing his enterprises without waiting for certain approvals for a period of three years or till the date of commencement of production or operation, whichever is earlier.

It is pertinent to mention here that about 99 percent of the industries functioning in Himachal Pradesh belong to the micro, small and medium sector. They form the backbone of the economy of the State and provide employment to over 3.50 lakh people. It was felt by the government that in order to attract more investment in this sector for increasing the level of income and employment in the State, the process of setting up and running such enterprises should be made simpler and faster and such enterprises should be freed from unnecessary processes, procedures and approvals. This would surely go a long way in promoting ‘ease of doing business’ in the State.

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