MSME Amendment Bill, 2015

The Micro, Small and Medium Enterprises (Amendment) Bill, 2015 was introduced in the Lok Sabha by the Minister for Micro, Small and Medium Enterprises, Mr. Kalraj Mishra on April 20, 2015. The Bill is currently pending with the Lok Sabha. In this article, we look at an overview of the MSME Amendment Bill, 2015 and the proposed increases to the investment limit.

Overview

The MSME Amendment Bill, 2015 seeks to increase the allowance for investment in plants and machinery in micro, small and medium enterprises. Currently, only those manufacturing businesses with investment in plant and machinery of less than Rs.10 crores and services businesses with investment in equipment of less than Rs.5 crores is eligible to obtain

MSME registration or Udyog Aadhaar registration. Under the prosed MSME Amendment Bill, the limit for investment in plant and machinery and equipment will be increased upto three times of the current limit.

Manufacturing Units - Investment in Plant & Machinery

Under the current MSME Act, 2006, the following are the investment in plant and machinery for different classifications: Micro Enterprises - Rs.25 lakhs Small Enterprises - Rs.25 lakhs to Rs.5 crores Medium Enterprises - Rs.5 crores to Rs.10 crores Under the proposed MSME Bill, 2015, the following are the proposed investment in plant and machinery for different classifications: Micro Enterprises - Rs.50 lakhs Small Enterprises - Rs.50 lakhs to Rs.10 crores Medium Enterprises - Rs.10 crores to Rs.30 crores

Service Providers - Investment in Equipment

Under the current MSME Act, 2006, the following are the investment in equipment for different classifications: Micro Enterprises - Rs.10 lakhs Small Enterprises - Rs.10 lakhs to Rs.2 crores Medium Enterprises - Rs.2 crores to Rs.5 crores Under the proposed MSME Bill, 2015, the following are the proposed investment in plant and machinery for different classifications: Micro Enterprises - Rs.20 lakhs Small Enterprises - Rs.20 lakhs to Rs.5 crores Medium Enterprises - Rs.5 crores to Rs.15 crores

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Frequently Asked Questions

Common questions about MSME Amendment Bill 2015 Investment Limits Overview.

The MSME Amendment Bill, 2015 is a proposed legislation that seeks to increase the investment limits for classifying enterprises as micro, small, and medium enterprises (MSMEs) in both the manufacturing and service sectors.

The government aims to increase the investment limits to provide more enterprises with access to the benefits and schemes available for MSMEs, which can promote growth and development in these sectors.

Under the proposed bill, the investment limit for classifying manufacturing enterprises as micro will increase from Rs. 25 lakhs to Rs. 50 lakhs, small enterprises will range from Rs. 50 lakhs to Rs. 10 crores (instead of Rs. 5 crores), and medium enterprises will range from Rs. 10 crores to Rs. 30 crores (instead of Rs. 5 crores to Rs. 10 crores).

For service enterprises, the proposed bill aims to increase the investment limit for micro enterprises from Rs. 10 lakhs to Rs. 20 lakhs, small enterprises from Rs. 10 lakhs to Rs. 2 crores to Rs. 20 lakhs to Rs. 5 crores, and medium enterprises from Rs. 2 crores to Rs. 5 crores to Rs. 5 crores to Rs. 15 crores.

According to the article, the MSME Amendment Bill, 2015 is currently pending with the Lok Sabha (the lower house of the Indian parliament).

The MSME Act and the proposed amendments aim to define and classify micro, small, and medium enterprises based on their investment in plant and machinery (for manufacturing) or equipment (for services). This classification determines their eligibility for various government schemes and benefits designed to promote the growth of MSMEs.

Currently, medium manufacturing enterprises are classified as those with an investment in plant and machinery between Rs. 5 crores and Rs. 10 crores. The proposed bill seeks to increase this limit to Rs. 10 crores to Rs. 30 crores.

The article mentions that the MSME Amendment Bill, 2015 was introduced in the Lok Sabha by the Minister for Micro, Small and Medium Enterprises, Mr. Kalraj Mishra, on April 20, 2015.

The micro, small, and medium enterprises (MSME) sector plays a crucial role in the Indian economy, contributing significantly to employment generation, rural industrialization, and overall economic growth. Increasing the investment limits can help more enterprises access the benefits and support provided by the government for this sector.

The proposed increase in investment limits is likely to result in some enterprises currently classified as micro or small being reclassified as small or medium enterprises, respectively. This reclassification may affect their eligibility for certain government schemes and benefits designed for specific categories of MSMEs.