Home >News >India >MSME definition revised, now medium firms are those with 250 cr turnover

New Delhi: At a special meeting of Cabinet Committee on Economic Affairs (CCEA) on Monday, chaired by PM Narendra Modi, the upward revision of MSME definition was approved.

The definition of micro manufacturing and services unit was increased to 1 crore of investment and 5 crore of turnover. The limit of small unit was increased to 10 crore of investment and 50 crore of turnover. This revision was done after 14 years since the MSME Development Act came into existence in 2006.

It was also decided to further increase the limit for medium manufacturing and service units. Now it will be 50 crore of investment and 250 crore of turnover. It has also been decided that the turnover with respect to exports will not be counted in the limits of turnover for any category of MSME units whether micro, small or medium. This is yet another step towards ease of doing business. This will help in attracting investments and creating more jobs in the MSME sector.

To ensure that MSME payments are released within the timeframe of 45 days, directions have been issued at the level of Cabinet Secretary, Expenditure Secretary and Secretary, MSME.

To further ease the burden on MSMEs, RBI has extended moratorium on repayment of loans for another three months.

Also, a robust ICT-based system called CHAMPIONS has also been launched by the Ministry of MSME. The portal is not only helping and handholding MSMEs in the present situation, but is also providing guidance to grab the new business opportunities and in the long run, become national and international Champions.

To provide immediate relief to MSME sector during the pandemic, last month the Modi government has announced 3 lakh crore collateral-free automatic loans for MSMEs to meet operational liabilities, buy raw material and restart businesses.

In order to create more opportunities for domestic players, the government also disallowed global tenders in procurements upto 200 crore.

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