The Ministry of
Micro, Small and Medium Enterprises Development (Amendment) Bill, 2015 are to
(i) enhance the existing limit for investment in plant and machinery
considering changes in price index and cost of inputs consistent with the
emerging role of the MSMEs in various Global Value Chains, (ii) include medium
enterprises apart from small enterprises in section 7(9) to enable the
aforesaid category of enterprises to avail the benefits and become competitive,
and (iii) empower the Central Government to revise the existing limit for
investment, by notification, considering the inflation and dynamic market
situation.
As per Micro,
Small and Medium Enterprises Development (Amendment) Bill, 2015, the investment
limit prescribed for Micro, Small and Medium Enterprises (MSMEs) in the
country, is proposed as under:
Manufacturing
enterprises:
(i)
Micro
enterprise: Investment in plant and machinery does not exceed fifty lakh
rupees
(ii)
Small
enterprise: Investment in plant and machinery is more than fifty lakh rupees
but does not exceed ten crore rupees.
(iii)
Medium
enterprise: Investment in plant and machinery is more than ten crore rupees but
does not exceed thirty crore rupees.
Service
enterprises:
(i)
Micro
enterprise: Investment in equipments does not exceed twenty lakh rupees.
(ii)
Small
enterprise: Investment in equipments is more than twenty lakh rupees but does
not exceed five crore rupees.
(iii)
Medium
enterprise: Investment in equipments is more than five crore rupees but does
not exceed fifteen crore rupees.
As
provided under Section 7(9) of the MSMED Act, 2006, the Government, while
classifying any class or classes of enterprises under sub-section 7(1) of this
Act, may adopt any criteria e.g. investment, employment or turnover of the
enterprises and include in such classification the micro or tiny enterprises or
the village enterprises, as part of small enterprises.
This information was given by the Minister of State,
Micro, Small and Medium Enterprises, Shri Giriraj Singh in a written reply to a
question in Lok Sabha here today.
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AKP/ASB