13.5 C
Chandigarh
December 14, 2019
Punjab

Cabinet approves amendment to Factories Act

Cabinet approves amendment to Factories Act

TPE Correspondent

Chandigarh, December 2

To strengthen the state’s investment climate and boost employment generation, Punjab Cabinet led by the Chief Minister Amarinder Singh approved various amendments to the Factories Act, 1948, Industrial Disputes Act 1947 and Contract Labour (Regulation & Abolition) Act, 1970.

It has also Okayed an ordinance to bring in the Punjab Right to Business Act 2019 and Punjab Right to Business Rules 2019, aimed at promoting ease of doing business for the newly incorporated Micro, Small and Medium Enterprises (MSMEs).

Spokesperson said the Cabinet has given its nod to amendments to section 2 (m) (i), 2 (m) (ii), 85, Section 56, Section 59, Section 65(3) and Section 105, as well as insertion of new section 106 B, in the Factories Act, 1948, through promulgation of an ordinance.

The ordinance will increase the threshold limit of number of workers from ‘ten’ and ‘twenty’ to ‘twenty’ and ‘forty’, in factories with manufacturing processes being carried out with or without the aid of power, respectively. This will help promote establishment of small manufacturing units to create more employment opportunities for workers. Consequently, the existing Section 2 m (i), 2 m(ii), 85, 56 and 65(3)(iv) of the Act are proposed to be amended.

The need for increasing the total number of hours of work on overtime in quarter is based on the demand from industries so that factories can carry out the work on urgent basis.

Under the Act, the district level nodal agency would assist MSME enterprise/(s) in maintaining record of ‘Declaration of Intent’ received, and issue ‘Certificate of In-principle Approval’ to the new enterprise, being set up in approved industrial park. For MSME units proposed outside the approved industrial park, the decision on issuance of ‘Certificate of In-Principle Approval’ would be taken by the District Level Nodal Agency within a period of 15 working days.

Punjab is home to approximately 2 lakh MSME units, which are one of the most important pillars of the industrial growth.

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