MSME Definition Widened
The Union cabinet has revised the definition of micro, small and medium enterprises and as per the new definition, a company with up to Rs 50 crore investments and up to Rs 250 crore turnover is classified as a medium enterprise. The enhanced turnover limit brings huge relief to many companies that
Published -
Jun 2, 2020 5:57 AM
The Union cabinet has revised the definition of micro, small and medium enterprises and as per the new definition, a company with up to Rs 50 crore investments and up to Rs 250 crore turnover is classified as a medium enterprise. The enhanced turnover limit brings huge relief to many companies that were worried that they would not be eligible for MSME status. This will help a wider section of companies to avail various sops announced for the sector, MSME minister Nitin Gadkari said. As per the new definition, micro units can have up to Rs 1 crore investments and turnover of up to Rs 5 crore while businesses with an investment of up to Rs 10 crore and turnover of up to Rs 50 crore will be classified as small. An equity infusion of Rs 50,000 crore for MSMEs through a fund of funds has also been approved to help MSMEs in managing the debt-equity ratio and in their capacity augmentation.
Tags : News/Views Nitin Gadkari investments equity MSME