MSME Amendment Bill, 2015

The Ministry of  Micro, Small and Medium Enterprises Development (Amendment) Bill, 2015 are  to (i) 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 Chains, (ii) include medium enterprises apart from small enterprises in section 7(9) to enable the aforesaid category of enterprises to avail the benefits and become competitive, and (iii) empower the Central Government to revise the existing limit for investment, by notification, considering the inflation and dynamic market situation.

As per Micro, Small and Medium Enterprises Development (Amendment) Bill, 2015, the investment limit prescribed for Micro, Small and Medium Enterprises (MSMEs) in the country, is proposed as under:

Manufacturing enterprises:

(i) Micro enterprise: Investment in plant and machinery does not exceed   fifty lakh rupees

(ii) Small enterprise: Investment in plant and machinery is more than fifty lakh rupees but       does not exceed ten crore rupees.

(iii) Medium enterprise: Investment in plant and machinery is more than ten crore rupees but    does not exceed thirty crore rupees.

Service enterprises:

(i) Micro enterprise: Investment in equipments does not exceed twenty lakh rupees.

(ii) Small enterprise: Investment in equipments is more than twenty lakh rupees but does not exceed five crore rupees.

(iii) Medium enterprise: Investment in equipments is more than five crore rupees  but does not exceed fifteen crore rupees.

As provided under Section 7(9) of the MSMED Act, 2006, the Government, while classifying any class or classes of enterprises under sub-section 7(1) of this Act, may adopt any criteria e.g. investment, employment or turnover of the enterprises and include in such classification the micro or tiny enterprises or the village enterprises, as part of small enterprises.

 This information was given by the Minister of State, Micro, Small and Medium Enterprises, Shri Giriraj Singh in a written reply to a question in Lok Sabha.