Tuesday, November 18, 2014: The MSME Ministry is planning to raise the capital limit for the manufacturing and services sector units in India, in order to help them to successfully deal with the changing business environment. The Ministry said that the need for changing the definition of MSMEs has arrived from many stakeholders considering the change in price index and dynamic market situation.
It further added, “The Ministry of micro, small and medium enterprises proposes to address this issue through Micro, Small and Medium Enterprises Development Act, 2006 by way of amending the provision relating to definition of MSMEs.”
According to the new proposal, the capital ceiling of manufacturing units of micro enterprises has been doubled from Rs 2.5 million to Rs. 5 million and that for the small enterprises it has been proposed to increase the limit from Rs. 50 million to Rs. 100 million. It further mentioned about raising the limit of medium enterprises by three times, from Rs. 100 million to Rs. 300 million.
For the service sector units, the proposal suggests to double the investment limit in plant and machinery for micro enterprises, from 1 million to 2 million. And for the small enterprises it suggested to increase from 20 million to 50 million, while for the medium enterprises the proposal entails hike from 50 million to 150 million.
Along with the above mentioned amendments, the government has also put forth the draft of the Micro, Small and Medium Enterprises Development (Amendment) Act, 2014. The proposed changes will be implemented to the present Micro, Small and Medium Enterprises Development Act, 2006.
