Pre-Reform

Compliance

MSMEs like any other large enterprises have to obtain the permissions/clearances from various
departments to start any business unit in the state.

Burden

Since MSMEs are juxtaposed with the large industry sector due to which they have to bear the clearance
cost similar to large industry. Thus, it puts a burden on their project.

Post-Reform
 Government of Rajasthan in an attempt to encourage hassle free establishment of Micro, Small
and Medium enterprises, had notified the ‘Rajasthan Micro, Small and Medium Enterprises
(Facilitation of Establishment and Operation) Ordinance 2019 on 4th March, 2019 and the
related rules on 24th May, 2019. The Rajasthan Micro, Small and Medium Enterprises
(Facilitation of Establishment and Operation) Act was subsequently enacted on 17th July, 2019.
 For execution of this Act, the Govt., on 12th June, 2019 launched a web portal
https://rajudyogmitra.rajasthan.gov.in/ on which applications are filed. MSME units are required
to submit only a ‘Declaration of Intent’ electronically to the Nodal Agency (Bureau of Investment
Promotion) which issues an ‘Acknowledgement Certificate’ as per which a MSME unit is
exempted from approvals and inspections under all State laws for 3 years from the date of
issuance of the Acknowledgement Certificate. However, after the expiry of Acknowledge
Certificate, the enterprise shall have to obtain required approvals within six months from the
date of such expiry.
 As on 2.9.2021 total 11019 applications registered and acknowledgement certificates issued on
portal. Out of which 4839 are of Micro category, 3853 are of Small category and 2327
applications are of Medium category.