Gangtok, Aug 12 (PTI) The Sikkim government has welcomed Parliament’s passage of the MSME Development (Amendment) Bill, 2026, saying the legislation will strengthen safeguards for micro, small and medium enterprises and create a more business-friendly environment for entrepreneurs in the state.
The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2026 was passed by Parliament in August 2026. It was cleared by the Rajya Sabha on August 3, and subsequently passed by the Lok Sabha on August 7.
The Sikkim government’s Department of Commerce and Industries, in a press statement on Wednesday, said delayed payments remain one of the biggest challenges confronting MSMEs, often putting pressure on cash flows, wages and working capital and limiting the ability of small businesses to expand.
“The amendments are an important step towards creating a more supportive and business-friendly environment for MSMEs. Faster recovery of delayed payments and stronger institutional mechanisms will help enterprises manage their working capital more effectively and operate with greater confidence,” the Commerce and Industries Department said.
The amendments are aimed at making the mechanism for resolving delayed payment disputes more effective and efficient, including by strengthening the role of MSME facilitation councils and promoting greater use of digital systems to improve transparency and ease of doing business.
According to the department, the changes are expected to facilitate quicker recovery of outstanding dues, speedier resolution of payment-related disputes and improve access to working capital by reducing payment delays. They are also expected to simplify business processes and reduce the regulatory burden on small enterprises.
The department said it has undertaken mass awareness and outreach programmes across Sikkim to familiarise entrepreneurs, MSME associations and other industry stakeholders with the new provisions and their potential benefits.
It has also urged MSMEs in the state to make use of the MSME Facilitation Councils to pursue outstanding payments and secure their legitimate dues.
“MSMEs are the backbone of Sikkim’s local economy and make a significant contribution to employment generation, entrepreneurship, innovation and inclusive economic growth,” the department said, adding that the state government remained committed to creating an ecosystem in which MSMEs could access timely payments and grow sustainably.
The department said the new provisions would be particularly significant for smaller enterprises, for whom prolonged payment delays can have a disproportionate impact on day-to-day operations and business expansion. PTI COR RG
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