Enhancement of investment limit for micro, small and medium manufacturing enterprises

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According to the Press Release of PIB dated 5^th August, 2014, the Union Minister of Micro, Small and Medium Enterprises, Shri Kalraj Mishra, while replying to a question in Rajya Sabha today, has stated that the issue of enhancement of investment limit for micro, small and medium manufacturing enterprises as well as of service enterprises is under consideration.

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It is to be noted that as per the existing provisions of The Micro, Small and Medium Enterprises Development Act, 2006, the Central Government may by notification classify any class or classes of enterprises, whether proprietorship, Hindu undivided family, association of persons, co-operative society, partnership firm, company or undertaking, by whatever name called as,
(a)    Micro Eneterprise
(b)    Small Enterprise, and
(c)    Medium Enterprise

Clause (1)(a) and 1(b) of Section7 of the MSMED Act, 2006, prescribes the limits for investment in plant and machinery for each of the three category both for manufacturing and service industry which are summarised as under:

Manufacturing enterprises	Service enterprises
(i) Micro enterprise: investment in plant and machinery upto Rs. 25 lakh	(i) Micro enterprise: investment in equipments upto Rs.10 lakh.
(ii) Small enterprise: investment in plant and machinery from Rs.25 lakh to Rs.5 crore	(ii) Small enterprise: investment in equipments from Rs.10 lakh to Rs.2 crore.
(iii) Medium enterprise: investment in plant and machinery from Rs.5 crore to Rs. 10 crore	(iii) Medium enterprise: investment in equipments from Rs.2 crore to Rs. 5 crore.

In calculating the investment in plant and machinery, the cost of pollution control, research and development, industrial safety devices and such other items as may be specified are excluded .