| Industry / Commerce / Finance |
The Micro, Small and Medium Enterprises Development (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 amends the Micro, Small and Medium Enterprises Act, 2006. The Act classifies and regulates enterprises as micro, small and medium enterprises.
- The Bill seeks to increase the allowance for investment in plants and machinery in micro, small and medium enterprises. Key provisions of the Bill include:
- The limit of investment in plant or machinery for enterprises engaged in the manufacture or production of goods, and the limit of investment in equipment for enterprises engaged in services has been increased. Changes in allowance made under the Act are given in Tables 1 and 2.
Table 1: Comparison of investment limits for enterprises in manufacture/production (in Rs)
Type of Enterprise
|
MSME Act, 2006
|
MSME Bill, 2015
|
| Micro |
25 lakh
|
50 lakh
|
| Small |
25 lakh to 5 crore
|
50 lakh to 10 crore |
| Medium |
5 crore to 10 crore
|
10 crore to 30 crore
|
Table 2: Comparison of investment limits for enterprises providing services (in Rs)
Type of Enterprise
|
MSME Act, 2006
|
MSME Bill, 2015
|
| Micro |
10 lakh
|
20 lakh
|
| Small |
10 lakh to 2 crore
|
20 lakh to 5 crore |
| Medium |
2 crore to 5 crore
|
5 crore to 15 crore
|
- The central government may change these investment limits, up to three times the specified limits, through a notification.
- Under the Act, the central government may classify micro, tiny or village enterprises as small enterprises. The Bill seeks to extend this to allow the classification of micro, tiny or village enterprises as small as well as medium enterprises.
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| Current Status: Pending |
| Ministry: Micro, Small and Medium Enterprises |
| Stage |
Date |
| Introduction |
Apr 20, 2015 |
| Com. Ref. |
May 21, 2015 |
| Com. Rep. |
Aug 05, 2015 |
| Lok Sabha |
Introduced |
| Rajya Sabha |
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