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CHAPTER II : NATIONAL BOARD
FOR MICRO, SMALL AND MEDIUM ENTERPRISES |
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3.
(1) With effect from such date as the Central Government may, by
notification, appoint, there shall be established, for the purposes of
this Act, a Board to be known as the National Board for Micro, Small and
Medium Enterprises. |
Establishment of Board |
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(2)
The head office of the Board shall be at Delhi.
(3)
The Board shall consist of the following members, namely:-
(a) the Minister in charge of the Ministry or Department of the Central
Government having administrative control of the micro, small and medium
enterprises who shall be the ex officio
Chairperson of the Board;
(b) the Minister of State or a Deputy Minister, if any, in the
Ministry or Department of the Central Government having administrative
control of the micro, small and medium enterprises who shall be ex officio
Vice-Chairperson of the Board, and where there is no such Minister of
State or Deputy Minister, such person as may be appointed by the Central
Government to be the Vice-Chairperson of the Board;
(c)
six Ministers of the State Governments
having administrative control of the departments of small scale
industries or, as the case may be, micro, small and medium enterprises,
to be appointed by the Central Government to represent such regions
of the country as may be notified by the Central Government in this
behalf, ex officio;
(d) three members of Parliament of whom two
shall be elected by the House of the People and one by the Council of
States;
(e) the Administrator of a Union territory to
be appointed by the Central Government, ex officio;
(f) the Secretary to the Government of India in charge of the Ministry
or Department of the Central Government having administrative control of
the micro, small and medium enterprises, ex
officio;
(g)
four Secretaries to the Government of India, to represent the Ministries
of the Central Government dealing with commerce and industry, finance,
food Processing industries, labour and planning to be appointed by the
Central Government, ex officio;
(h) the Chairman of the Board of Directors of the National Bank,
ex officio;
(i) the chairman and managing director of the Board of Directors of the
Small Industries Bank, ex officio;
(j) the chairman, Indian Banks Association, ex officio;
(k) one
officer of the Reserve Bank, not below the rank of an Executive
Director, to be appointed by the Central Government to represent the
Reserve Bank;
(l)
twenty persons to represent the associations of micro, small and medium
enterprises, including not less than three persons representing
associations of women’s enterprises and not less than three persons
representing associations of micro enterprises, to be appointed by the
Central Government;
(m) three
persons of eminence, one each from the fields of economics, industry and
science and technology, not less than one of whom shall be a woman, to
be appointed by the Central Government;
(n) two
representatives of Central Trade Union Organisation, to be appointed by
the Central Government; and
(o) one officer not below the rank of Joint Secretary to the Government
of India in the Ministry or Department of the Central Government having
administrative control of the small and medium enterprises to be
appointed by the Central Government, who shall be the Member-Secretary
of the Board, ex officio.
(4) The term of office of the members of the Board, other than
ex officio
members of the Board, the manner of filling vacancies, and the procedure
to be followed in the discharge of their functions by the members of the
Board, shall be such as may be prescribed;
Provided that the term of office of an ex officio
member of the Board, shall continue so long as he holds the office by
virtue of which he is such a member.
(5) No act or proceedings of the Board shall be invalid merely by reason
of-
(a) any
vacancy in, or any defect in the constitution of, the Board; or
(b) any
defect in the appointment of a person acting as a member of the Board;
or
(c) any
irregularity in the procedure of the Board not affecting the merits of
the case.
(6) The
Board shall meet at least once in every three months in a year.
(7) The
Board may associate with itself, in such manner and for such purposes as
it may deem necessary, any person or persons whose assistance or advice
it may desire in complying with any of the provisions of this Act
and a person so associated shall have the right to take part in the
discussions of the Board relevant to the purposes for which he has been
associated but shall not have the right to vote.
(8)
Without prejudice to sub-section (7) the Chairperson of the Board shall,
for not less than two of the meetings of the Board in a year, invite
such Ministers of the State Governments having administrative control of
the departments of small scale industries or, as the case may be, the
micro, small and medium enterprises, or the Administrators of Union
territories and representatives of such other associations of micro,
small and medium enterprises, as he may deem necessary for carrying out
the purposes of this Act.
(9) It is
hereby declared that the office of member of the Board shall not
disqualify its holder for being chosen as, or for being, a member of
either House of Parliament. |
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4. (1) The Central Government may remove a member of the Board from it, if
he –
(a) is,
or at any time has been, adjudged as insolvent; or
(b) is, or becomes, of unsound mind and stands so declared by a competent
court; or |
Removal of member from
Board. |
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(c) refuses to act or becomes incapable of acting as a member of the Board ;
or
(d) has
been convicted of an offence which, in the opinion of the Central
Government, involves moral turpitude; or
(e) has
so abused, in the opinion of the Central Government, his position
as a member of the Board as to render his continuance in the Board
detrimental to the interests of the general public.|
(2)
Notwithstanding anything contained in sub-section (1), no member shall
be removed from his office on the grounds specified in clauses (c) to
(e) of that sub-section unless he has been given a reasonable
opportunity of being heard in the matter. |
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5. The Board shall, subject to the general directions of the Central
Government, perform all or any of the following
functions, namely:-
(a)
examine the factors affecting the promotion and development of micro,
small and medium enterprises and review the policies and programmes of
the Central Government in regard to facilitating the
promotion and development and enhancing the competitiveness of such
enterprises and the impact thereof on such enterprises;
(b) make
recommendations on matters referred to in clause (a) or on any other
matter referred to it by the Central Government which, in the opinion of
that Government, is necessary or expedient for facilitating the
promotion and development and enhancing the competitiveness of the
micro, small and medium enterprises; and
(c) advise the
Central Government on the use of the Fund or Funds constituted under
section 12. |
Functions of Board |
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6. Subject to other provisions of this Act, the Member-Secretary of the
Board shall exercise such powers and perform such functions as may be
prescribed. |
Powers
and functions of Member-Secretary of Board |
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