Government Proposes to double Investment Limit for Micro and Small Enterprises
Updated: Apr 20, 2015 06:11:54pm
The existing limit are Rs 25 lakh, Rs 5 and Rs 10 crore respectively. These investment limits were fixed by the Micro, Small and Medium Enterprises Development (MSMED) Act in 2006.
There will, however, be separate investment limit for enterprises classified as micro, small or medium in services sector. The proposed investment limit will be Rs 10 lakh for micro, Rs 5 crore for small and Rs 15 crore for medium enterprises in the services sector.
The amendment bill introduced by Micro, Small and Medium Enterprises Minister Kalraj Mishra in the Lok Sabha proposes to raise the limits in view of rise in input costs.
"It is proposed to amend the MSMED Act to 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 chain," said Mishra in the statement of objects and reasons for the bill.
The bill also seeks to empower the central government to revise the investment limits through a notification, the statement said. (KNN/DB)