Ease of Doing Business for MSMEs: MSME Minister Narayan Rane on Wednesday stated he’ll take up MSMEs’ suggestion of accelerating the present turnover restrict of small enterprises within the new MSME classification with the Finance Ministry and Prime Minister Narendra Modi. The request to reinforce the turnover restrict from present as much as Rs 50 crore to Rs 100 crore was made by a number of business associations in a gathering with Rane and different high officers of the MSME Ministry in New Delhi.
“The request was made by a number of bodies out of more than 100 associations present at the event. Currently, the gap between the maximum turnover of a small enterprise and a medium enterprise is quite large — from up to Rs 50 crore to up to Rs 250 crore. The challenges faced by a business with turnover let’s say Rs 51 crore is different from what a business with a turnover of Rs 250 crore face,” Mukesh Mohan Gupta, President, Chamber of Indian Micro, Small & Medium Enterprises (CIMSME) advised Financial Express.
In such a state of affairs, small enterprises stand to lose out on schemes given to micro and small enterprises (MSEs) notably reminiscent of CGTMSE and therefore, CIMSME had additionally advisable growing the restrict to Rs 100 crore for small enterprises, Gupta added.
However, different associations opined that the transfer would find yourself bringing companies comparatively larger than micro enterprises into the MSE fold and eat into the latter’s share of advantages. “The apprehension was that the benefits meant for MSEs will be shared with comparatively bigger companies. On the (MSME) policy front, there was no mention of it by the minister,” Anil Bhardwaj, Secretary-General, Federation of Indian Micro Small & Medium Enterprises (FISME) advised Financial Express Online.
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The authorities had revised the MSME definition in 2020 to convey extra companies below the MSME ambit. Businesses as much as Rs 1 crore funding and Rs 5 crore turnover had been categorised below micro section from earlier lower than Rs 25 lakh funding. Likewise, lower than Rs 10 crore funding and Rs 50 crore turnover had been thought-about small companies vis-a-vis as much as Rs 5 crore funding earlier. For medium enterprises, the funding restrict was expanded from lower than Rs 10 crore to lower than Rs 50 crore together with as much as Rs 250 crore turnover. The revised definition had eliminated the excellence between the manufacturing and providers sectors.
Meanwhile, numerous associations on the assembly had been left unprecedented their suggestions on addressing varied MSME challenges. “It was a great insult to MSME associations. Out of 100 odd participants, only a few got to interact with the government. It was a namesake event called for interaction but there was no interaction between associations and the minister,” KE Raghunathan, Convenor, Consortium of Indian Associations (CIA) advised Financial Express Online.
Source: www.financialexpress.com”