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Notification on new definition of MSMEs to come out after Parliament passes the Bill: MSME Secretary to KNN

Updated: Jan 01, 1970
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With the increased budgetary allocation to the MSME sector this year, the credit flow to the sector under various schemes like CGS and PMEGP would increase, MSME Secretary Arun Kumar Panda told KNN.

He was speaking on the sidelines of meeting of the National Board of MSME, the highest-level policy making body for the sector.

The Secretary said, “The important thing is to enhance the credit flow into MSME under CGS and also expecting Net Credit Guarantee to go up tremendously.”

He further added that “On various schematic interventions like PMEGP, there would be a huge encouragement and credit flow into MSME sector which give rise to employment generation.”

Regarding technology centre, he said bigger boost will be provided and all other in schemes related to Khadi, Coir and Clusters, there will be huge improvement and enhancement.

On notifying the new definition approved by the Cabinet for MSMEs, Panda said, “The government will actually place this Bill before the Parliament and its up to the wisdom of the Parliament to decide whether to pass it or not pass it or pass it with some changes.”

According to the government’s new definition, businesses with revenue of as much as Rs 5 crore will be called a micro enterprise, those with sales between Rs 5 crore and Rs 75 crore will be deemed as small and those with revenue between Rs 75 crore and Rs 250 crore will be classified as medium-sized enterprises. Finance minister Arun Jaitley proposed a 25% corporate tax rate for entities with sales of up to Rs 250 crore in the budget.

On operational status of CLCSS, Panda said, “Under the national manufacturing competitiveness programme during 2017-18, Rs 506 crores have been allocated and next year this allocation will increase to Rs 1,006 crores, which is almost double of the previous year. There would also be efforts to handle unmet liabilities.” (KNN/ DA)

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