New Delhi, Oct. 30 -- The new definition of Micro Small and Medium Enterprises (MSMEs) will be linked to turnover and do away with the current system of classifying units based on the capital deployed in plant and machinery.
According to media reports, the MSME ministry which is finalising the proposal, is seeking to end the difference between the manufacturing and services sector that the current investment-based definition makes.
As per the proposal, any unit with a turnover of up to Rs 5 crore will be classified as a micro enterprise, while those with up to Rs 75 crore annual revenue will be in the small category unit. Similarly, enterprises with turnover of up to Rs 250 crore will be classified as medium-scale enterprises.
Earlier...