Informal Ministers’ to take final call to redefine MSMEs; industry says its a much needed move
New Delhi, Apr 29 (KNN) There have been talks around the issue of redefining the basis of Micro, Small and Medium Enterprises (MSMEs). Due to the varied views on the issue, the MSME ministry has taken the decision of constituting an informal group of Ministers who will look into the matter and come up with possible recommendations said Kalraj Mishra, Union MSME Minister.
The group is likely to include finance Minister Arun Jaitley and Road Transport Minister Nitin Gadkari among other ministers.
He further informed that the group of Secretaries are in favour that turnover and employment should be added as criteria for defining MSMEs as at the International Level it is done on such basis.
Talking to KNN, Sunil Vaish, Vice President of Indian Industries Association (IIA) said that the redefinition is much needed and much awaited.
“It is essential for the Ministry to redefine the MSMEs. Since the GST is going to be implemented, all the units will have to play on the same crease. There is no exemption or provision for the MSMEs in terms of excise and VAT, considering the situations that are going to surround MSMEs due to the GST, the redefinition is a good move” said the V.P
Also it is interesting to note that the report submitted by the One-Man committee led by the former Cabinet Secretary has opposed the ‘turnover’ and ‘employment’ criteria to define MSMEs. The report added that these criteria do not add anything worthwhile over the present system.
Rather the committee proposed to formulate investment bands for each sector considering that different sectors of the MSMEs have different requirements in terms of plant, labour and machinery inputs. The report also added that the Ministry should decide the investment limit at the Centre level from time to time instead of approaching Parliament for the approval.