The Govt on Monday introduced a Bill in the lok Sabha to enhance the investment limits for micro, small and medium enterprises and also made a provision for enhancing it further through a notification.
The investment limits in plant and machinery for the micro enterprises is proposed to be raised to Rs50 lakh, of small enterprise to Rs10 crore and medium enterprise to Rs30 crore. The existing limit are Rs25 lakh, Rs5 and Rs10 crore respectively. These investment limits were fixed by the Micro, Small and Medium Enterprises Development (MSMED) Act in 2006. The amendment Bill introduced by Micro, Small and Medium Enterprises Minister Kalraj Mishra.
“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,” Mishra said.