Ludhiana, May 14 (KNN) Chamber of Industrial and Commercial Undertakings (CICU) has said that new definition of Micro Small and Medium Enterprises (MSME) with higher slab of investment will be able to avail benefits.

However, the industrial body is not happy with the announcement of Rs 3 lakh crore as collateral-free loans.

''After Prime Minister Narender Modi announced a package for 20 Lakh crore for self-reliance India. Industry was quite hope full that it will be a ray of hope for MSME reeling under tremendous pressure,'' CICU said in a statement.

''Announcement made by the Finance Minister, were not sufficient. Collateral free loan was announced for 3 lakh crore. A similar scheme is already there and it has not worked as Banks never give the same citing NPA risk. Government must ensure that bank should extend these loans to the industry,'' it added.

They also said that industries need more package like technology upgradation funds to make india self-reliant, finance to be provided at low cost export incentives for MSMEs.

The Ludhiana-based industry body hailed the decision to invite tenders of up to Rs 200 crore domestically. 

The central government on Wednesday changed the definition of MSME and introduced a revised the criteria to define MSMEs.

As per the revised MSME classification, any firms in both manufacturing and service sector will be defined as “Micro” if they have an investment up to Rs 1 crore and turnover up to Rs 5 crore.

Earlier firms could only be defined as Micro if they had an investment up to Rs 25 lakh and Rs 10 lakh in manufacturing and service sector respectively.

Both manufacturing and service firms can be classified as “Small” if they have investment up to Rs 10 crore and turnover up to Rs 50 crore respectively.

On the other hands, ''Medium'' manufacturing and service firms will be allowed an investment up to Rs 20 crore and turnover up to Rs 100 crore.