Question : MNCs IN SMALL INDUSTRY SECTOR



(a) whether several multi-national companies have sneaked into the small scale industrial sector by adopting irregular and illegal means;

(b) if so, whether the Government has received any complaints from ‘Bharatiya Laghu Udyog Mahasangh’ regarding penalising such companies and to scrap the reservation meant for small scale sector; and

(c) if so, the details thereof and action taken thereon?

Answer given by the minister


THE MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (INDEPENDENT CHARGE) (SHRI DINSHA PATEL)

(a): Government has occasionally received information of violation of Policy of reservation for exclusive manufacture in SSI (now MSE) sector by non-SSI (non-MSE) units. Under the extant policy, a non-SSI (non-MSE) unit can manufacture items reserved for manufacture in the MSE sector after obtaining a licence under the Industries (Development & Regulation) Act, 1951, provided it undertakes an obligation to export a minimum of 50% of production.

(b): No, Sir.

(c): Does not arise.