The government has implemented Quality Control Orders (QCOs) in a phased manner with exemptions and relaxations for micro, small and medium enterprises (MSMEs) to ensure that domestic production is not disrupted, the Lok Sabha was informed on Sunday.
The Bureau of Indian Standards (BIS), under the Department of Consumer Affairs, is enforcing QCOs issued by various line ministries while providing special concessions to MSMEs, including additional time for compliance. Micro enterprises are granted a six-month extension, while small enterprises receive a three-month extension to meet QCO requirements.
The government has also exempted imports made by domestic manufacturers for producing export-oriented goods and allowed imports of up to 200 units for research and development purposes. Manufacturers have been permitted to clear legacy stock manufactured or imported before the implementation of QCOs within six months from the effective date.
To further support MSMEs, BIS has introduced financial and technical relaxations in its certification process. Annual minimum marking fees have been reduced by 80 per cent for micro enterprises, 50 per cent for small enterprises and 20 per cent for medium enterprises. An additional 10 per cent concession is available for MSMEs located in the northeastern region and for women-owned enterprises.
BIS has also made it optional for MSMEs to maintain in-house laboratories, allowing them to use BIS-recognised or NABL-accredited external laboratories, including shared or cluster-based facilities. Manufacturers are now permitted to define their own inspection and testing controls under the Scheme of Inspection and Testing.
Separately, the Reserve Bank of India has advised banks to link loans extended to MSMEs to external benchmarks to improve monetary policy transmission. The reset period for such loans has been reduced to three months, and banks have been asked to offer existing borrowers an option to switch to the external benchmark-linked interest rate regime.
The government has also introduced the Mutual Credit Guarantee Scheme for MSMEs, under which lenders are provided credit guarantee cover for term loans of up to ₹100 crore for projects involving the purchase of equipment and machinery.
Other measures include prescribing specific priority sector lending targets for MSMEs, mandating banks not to seek collateral for loans up to ₹10 lakh to micro and small enterprises, and fixing working capital limits at a minimum of 20 per cent of projected annual turnover for borrowings up to ₹5 crore.
The information was shared by Minister of State for MSMEs Shobha Karandlaje in a written reply to the Lok Sabha.
