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.
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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
