Udyog Aadhaar from MSMEs gets a ‘like’ in State

The simplified Aadhaar-based registration service for micro, small and medium enterprises launched in September has received good response in Kerala though entrepreneurs have aired their apprehensions about possible misuse of the facility.

According to data from the Union Ministry of Micro, Small and Medium Enterprises, 509 enterprises have so far received Udyog Aadhaar Memorandum in Kerala since the new facility was notified on September 18. Of them, 412 are micro enterprises; 94 are small enterprises and three are medium-sized enterprises. The number of enterprise with Udyog Aadhaar Memorandum in the country is 27,735 and Maharashtra tops the list of states with 7,786 enterprises with UAM.

The district president of Kerala State Small Industries Association K. A. Joseph welcomed the new registration regime. He said the new system was hassle-free and registration could be done without having to go the District Industries Centres.

But he aired some apprehensions about the absence of a provision for provisional registration (Part I registration under the MSME Act) for starting preliminary works like getting electricity connection.

He also said that Part II of the Entrepreneur Memorandum (final registration under MSME Act after a unit is commissioned) used to be issued only after physical verification by State Industries Department officials. However, it is not clear as to who would do the physical verification under the new regime. This can lead to a situation in which people misuse the facility and float “paper” units for accessing facilities like subsidised electricity.

However, director of Kochi-based Institute of Small Enterprises and Development P. M. Mathew says that it would be up to the State machinery to make actual verifications. He also discounted fears about hurdles to starting preliminary works under the new regime.

A senior official of the State Industries Department said that the response to the UAM regime was good in the State though some fears had been aired by entrepreneurs. He also said that the State agencies would now have no control over the registration of MSMEs.