IBC should be amended to save SMEs

 Gujarat Global News Network, Ahmedabad
Though the government says that small and medium industries have a pivotal role in generating employment and wealth in the country there is no mention SMEs in the Insolvency and Bankruptcy Code.
Unless this code is amended and SMEs are included in it, small and medium industries in the country face the future of closer. There are 1600 small and medium industries and 1500 will be closed down because of financial crisis arising out of the provisions of the IBC.
Stating this operational creditors Association has decided to launch multi pronged campaign for amendment in the IBC. It plans to move the supreme court next week for inclusion of SMEs in the the IBC.

It is also approaching government agencies to influence government for amendment. A spokesperson of the association said that the contribution of this sector in the GDP is 29% which is very significant, the sector provides direct and indirect employment to more than 11 crore people.It is obvious that the closer of small and medium industries will make thousand of people in small and medium industries  jobless.The spokesman said that IBC focuses on entrepreneurs but its provisions are such that entrepreneurs would not get any benefit. In a way he said that IBC is the biggest threat to entrepreneurs

(For news in Hindi see our Hindi daily Chaupal Chronicle)

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