MSMEs to be decided based on turnover; Bill introduced in Lok Sabha
Updated : July 23, 2018 04:36 PM IST
The Micro, Small and Medium Enterprises Development (Amendment) Bill provides for change in the criterion of classification of MSMEs from the existing based on 'investment in plant and machinery or equipment' to 'annual turnover' of the enterprise.
The bill was introduced in the Lok Sabha by Minister of State for MSMEs Giriraj Singh, after he withdrew the 2015 Bill on the issue.
The statement of objects and reasons of the bill said it has been observed during stakeholders' consultation that the criterion of investment in plant and machinery or equipment entails physical verification having associated transaction costs.