On Monday, the cabinet approved the expanded definition of micro, small and medium enterprises (MSMEs) and finalised modalities for the Rs 20,000 crore subordinate debt for stressed units, and Rs 50,000 crore fund to boost the growth of the sector. It will help more companies benefit from a package announced for small and medium enterprises and also relieve the financial stress on them.
The revision of MSME definition is broadly on the lines of that detailed in the Rs 21 crore Atmanirbhar India package announced on May 13. There has been one change in the package – the turnover limit of medium manufacturing and service units have been further raised to Rs 250 crore, as said in an official statement.
The definition of MSMEs is being expanded to accommodate units that have grown bigger than the defined limit, said finance minister Nirmala Sitharaman while announcing the package on May 13.
The investment and turnover limits for micro-manufacturing and services units were raised to Rs 1 crore and Rs 5 crore, respectively. The limit of the small unit was increased to an investment of Rs 10 crore and a turnover of Rs 50 crore. For a medium unit, the limit was increased to Rs 20 crore of investment and Rs 100 crore of turnover.
