New Definition of MSMEs to be Amended Soon: Nitin Gadkari

Union Minister of Micro Small and Medium Enterprises (MSMEs) Nitin Gadkari asserted that the government will revise the criteria for medium units by enhancing the investment and turnover limits to up to Rs 50 crore and Rs 200 crore.

"We have taken a decision to raise the up to Rs 20 crore investment (criteria) to up to 50 crore and turnover (limit) to up to Rs 200 crore. So, we will issue an order for that," Gadkari said.

As per the revised definition, any firm with investment up to Rs 1 crore and turnover under Rs 5 crore will be classified as "micro". A company with investment up to Rs 10 crore and turnover up to Rs 50 crore will be classified as "small" and a firm with investment up to Rs 20 crore and turnover under Rs 100 crore will be classified as "medium".

''Criteria should be based on investment "or" turnover instead of investment and turnover both as announced. The government will rectify the same,'' he added.

Gadkari also said that he is also open to consider suggestions regarding enhancing the turnover limit to up to Rs 250 crore for medium enterprises, and will take up the matter with the MSME Secretary.

Last week, Finance Minister Nirmala Sitharaman had announced a change in the definition of MSMEs.

'The revision was a long pending demand of MSMEs,'' Sitharaman had said at a press conference sharing details of the 20-lakh crore economic packages.