New Defination of MSME

Micro, Small and Medium Enterprises are abbreviated as MSME. There are two types of MSMEs. Manufacturing enterprise ie production unit. The second is the Service MSME unit. It mainly works to provide service. Recently the government has changed the definition of MSME. Under the new change, low-grade enterprises will come in micro, small and medium industries.

Micro industry: Those industries are kept in the category of small scale industries in which the investment is up to Rs.1crores and the turnover is up to Rs.5 crores. This investment and turnover limit is applicable in both manufacturing and service sectors.

Small Scale industries: Those industries are kept in the category of small scale industries in which the investment is up to Rs.10 crores and the turnover is up to Rs.50 crores. This investment and turnover limit is applicable in both manufacturing and service sectors.

Medium Industry: Those industries in the manufacturing and service sector with an investment of 50 crores and a turnover of 250 crores will come under the medium industry. Earlier, the Finance Minister had changed the definition of MSME while announcing the self-reliant package. The Finance Minister had placed enterprises with an investment of Rs 20 crore and a turnover of Rs 100 crore in the medium industry. But the entrepreneur was not happy even with this new change of government. After this, in the cabinet meeting held on June 1, 2020, the government has made this change, fulfilling the demand of the entrepreneurs. Now such industries of manufacturing and service sector which have investment of 50 crores (cost of setting up machines and units etc.) and turnover of 250 crores will come under medium industry.

The main services rendered by the MSME-DFO office are:

• Services and Schemes pertaining to MSME sector of Govt. of India
• Providing techno-economic and managerial consultancy, common facilities and extension services to MSMEs.
• Providing facilities for technology upgradation, modernisation, quality improvement and infrastructure.
• Developing Human Resources through training and skill upgradation.
• Advising the Government in policy formulation for the promotion and development of MSMEs.
• Providing economic information services.
• Maintaining a close liaison with the Central Ministries, State Governments, Financial Institutions and other Organisations concerned with development of MSMEs.
• Evolving and coordinating Policies and Programmes for development of MSMEs as ancillaries to large industries.