Giving the MSME sector a much needed push, the Modi-led Government on Monday introduced a Bill in Lok Sabha to enhance the limit for investment in plant and machinery in such units.

The investment limits in plant and machinery for the micro enterprises is proposed to be raised to Rs 50 lakh, small enterprise to Rs 10 crore and medium enterprise to Rs 30 crore.

The existing limits are Rs 25 lakh, Rs 5 crore and Rs 10 crore for these three categories of enterprises respectively.

The proposed increase in investment limit will help improve production capacities of MSMEs and enhance their competitiveness, say industry observers.

INVESTMENT CRITERION

Considering the inflation and dynamic market situation, the Bill also proposes to empower the Central Government to periodically revise the criterion of investment.

Revising the investment limits by way of notification will facilitate timely action , said the statements of objects and reasons to the Bill.

The Bill--introduced by MSME minister Kalraj Mishra-- however stipulates that the investment limits notified by the Centre shall not exceed thrice the existing limits.

srivats.kr@thehindu.co.in

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