Lok Sabha Question No. 2734 (UNSTARRED), answered on 2018-03-12
Subject: Promotion of MSME Sector
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: BHARAT SINGH, ADVOCATE NARENDRA KESHAV SAWAIKAR, RAJENDRA AGRAWAL, Tejpratap Singh,Yadav, ANJU BALA, AJAY (TENI) MISRA, B. SREERAMULU, RAVINDRA KUMAR PANDEY, RAVNEET SINGH

## GOVERNMENT OF INDIA

## MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION  NO. 2734 TO BE ANSWERED ON 12/03/2018

## PROMOTION OF MSME SECTOR

2734.

SHRI  BHARAT SINGH:

ADV.  NARENDRA KESHAV SAWAIKAR:

SHRI  RAJENDRA  AGRAWAL:

SHRI  TEJ PRATAP SINGH YADAV:

SHRIMATI  ANJU BALA:

SHRI  AJAY MISRA TENI:

SHRI  B. SRIRAMULU:

SHRI  RAVINDRA KUMAR PANDEY:

SHRI  RAVNEET SINGH:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPIRSES be pleased to state:

- (a) whether the  Government proposes to amend the Micro, Small and Medium Enterprises (MSMEs) Development  Act  and  redefine  MSMEs  on  the  basis  of  annual  turnover  instead  of  the  quantum  of investment made in its plant and machinery;
- (b) if so, the details thereof and the reasons therefor;
- (c) whether the aforesaid initiatives taken by the Government would promote ease of doing business and create more job opportunities in the country;
- (d) if so, the details thereof along with the extent to which it is likely to benefit the MSME sector; and
- (e) the other steps taken/proposed to be taken by the Government to promote and stimulate the growth of the MSME sector in the country?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

- (a) & (b):   Yes, Madam.  The Government has decided to change the criterion for classifying Micro, Small  and  Medium  enterprises.       In  the  changed  criterion,  a  micro  enterprise  is  defined  as  an enterprise  where  the  annual  turnover  does  not  exceed  five  crore  rupees,  a  small  enterprise  as  an enterprise where the annual turnover is more than five crore rupees but does not exceed seventy five crore rupees and a medium enterprise as an enterprise where the annual turnover is more than seventy five crore rupees but does not exceed two hundred and fifty crore rupees.
- (c) & (d):    Yes, Madam.  Turnover as a classification criterion helps in having a non discretionary, transparent system and eliminates the need for inspections.  The changed framework is also conducive for impetus to growth and thereby to increase in employment opportunities.
- (e):      The  Ministry  of  MSME  has  taken  several  initiatives  to  promote  and  stimulate  the  growth  of MSME Sector in the country.  These include simplification of the registration process through a one page Udyog Aadhar Memorandum (UAM), introduction of the 'MSME SAMBANDH' portal for monitoring  the  implementation  of  public  procurement  policy  for  the  MSEs  and  launching  of  the 'MSME SAMADHAAN' portal  for  enabling  MSMEs  to  directly  register  their  cases  relating  to delayed payments. In addition, Ministry of MSME also helps the MSME Sector through its schemes / programmes  which  include  the  Prime  Minister's  Employment  Generation  Programme  (PMEGP), Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme (CLCSS), National Manufacturing Competitiveness Programme, Cluster Development Programme, Marketing Development Assistance and Skill/Entrepreneurship Development   Programme etc.