Hi,
As per the recent RBI circular on this matter which i am reproducing here under, it appears that clubbing of units for this purpose is not envisaged by the MSMED Act - 2006. The Union Govt. was asked for a clarification in 2007 which still remains unanswered.
Trust this helps,
Jagannath
RBI/2010-11/305
RPCD.SME & NFS.BC.No. 35 /06.02.31 (P)/2010-11
December 6, 2010
To,
The Chairman / Managing Director
All Scheduled Commercial Banks
(excluding RRBs)
Madam / Dear Sir
Ownership of units – Two or more undertakings under the same ownership – Status of the unit
Please refer to our circular RPCD.No.PLNFS.No.BC.67/06.03.01/93-94 dated November 22, 1993 on the captioned subject (copy enclosed) wherein banks were advised to follow the guidelines outlined in Notification No. S.O.2 (E) dated 1 January 1993 issued by Government of India, Ministry of Industry for the purpose of determining Small Scale Industries status of the units.
2. As the MSMED Act, 2006 does not provide for clubbing of investments of different enterprises set up by the same person / company for the purpose of classification as micro, small and medium enterprises, Government of India, vide office memorandum No.5(10)2007 MSME/POL dated April 15, 2009, have intimated that the provision, as notified in Gazette Notification No. S.O.2 (E) dated 1 January 1993, of clubbing of investments of two or more enterprises under the same ownership for the purpose of classification of industrial undertakings as SSI (further notified in the principal notification No. S.O.857 (E) dated December 10, 1997), has been rescinded vide Notification No. S.O.563 (E) dated February 27, 2009. Copies of the Notifications are enclosed.
3. You are advised to issue suitable instructions to your branches / controlling office and accord wide publicity to the same.
Yours faithfully
(B.P. Vijayendra)
Chief General Manager
Encl: as above
