Lok Sabha Question No. 3633 (UNSTARRED), answered on 2015-12-21
Subject: MSME Amendment Bill, 2015
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: KAVITHA KALVAKUNTLA, PREM SINGH CHANDUMAJRA, K.R.P. PRABAKARAN

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPIRSES

## LOK SABHA UNSTARRED QUESTION No.3633 TO BE ANSWERED ON 21.12.2015

## MSME AMENDMENT BILL, 2015

## 3633.  SHRIMATI KAVITHA KALVAKUNTLA: SHRI PREM SINGH CHANDUMAJRA: SHRI K.R.P. PRABAKARAN:

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

- (a) the main aims and objectives of the Micro, Small and Medium Enterprises(MSMEs) Amendment Bill that was introduced in the Lok Sabha in April 2015;
- (b) whether the new bill seek to increase the allowances for investments in MSME and if so, the details thereof;
- (c) whether  the  Union  Government  is  allowed  to  classify  micro,  tiny  or  village enterprises as small or medium enterprises, based on their turnover and employment and if so, the details thereof; and
- (d) whether the Bill include the definition of Village Industries as provided in the Khadi and Village Industries Commission Act, 1956 also and if so, the details thereof?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI GIRIRAJ SINGH)

- (a): The objectives of the proposed  Micro, Small and Medium Enterprises Development (Amendment) Bill,  2015  are    to  (i)  enhance  the  existing  limit  for  investment  in  plant  and machinery considering changes in price index and cost of inputs consistent with the emerging role  of  the  MSMEs  in  various  Global  Value  Chains,  (ii)  include  medium  enterprises  apart from small enterprises in section 7(9) to enable the aforesaid category of enterprises to avail the benefits and become competitive, and (iii) empower the Central Government to revise the existing limit for investment, by notification, considering the inflation and dynamic market situation.
- (b): Yes, Madam. As per Micro, Small and Medium  Enterprises Development (Amendment)  Bill,  2015,  the  investment  limit  prescribed  for  Micro,  Small    and  Medium Enterprises (MSMEs) in the country, is proposed as under:

Manufacturing enterprises:

- (i) Micro  enterprise:  Investment  in  plant  and  machinery  does  not  exceed      fifty  lakh rupees
- (ii) Small enterprise: Investment in plant and machinery is more than fifty lakh rupees but does not exceed ten crore rupees.
- (iii) Medium enterprise: Investment in plant and machinery is more than ten crore rupees but does not exceed thirty crore rupees.

## Service enterprises:

- (i) Micro enterprise: Investment in equipments does not exceed twenty lakh rupees.
- (ii) Small enterprise: Investment in equipments is more than twenty lakh rupees but does not exceed five crore rupees.
- (iii) Medium enterprise: Investment in equipments is more than five crore rupees  but does not exceed fifteen crore rupees.
- (c): As provided under Section 7(9) of the MSMED Act, 2006, the Government, while classifying any class or classes of enterprises under sub-section 7(1) of this Act, may adopt any criteria e.g. investment, employment or turnover of the enterprises and include in such classification  the  micro  or  tiny  enterprises  or  the  village  enterprises,  as  part  of  small enterprises.
- (d): No,Madam.

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