Govt plans periodic updation of capital investment criteria for MSMEs definition

New Delhi, May 9 (KNN) To make capital investment criteria to qualify as micro, small and medium enterprises (MSMEs) more realistic and aligned with changing inflation levels the MSME Ministry is planning to revise the norm every three or five years.

As per Mint, the ministry is planning to include the proposal in the upcoming MSME policy and will send it for cabinet approval once the policy is final.

For revising the investment-based definition of MSMEs at regular intervals there is no provision in the Micro Small and Medium Enterprises Development Act, 2006.

After the amendment of the MSMED Act the union government will be authorised to change the qualification norms at frequent intervals through notifications.

In an endeavour to bring uniformity in laws in the MSME sector the government is also considering of drafting a model law on the MSME sector for circulation among states.  (KNN Bureau)