New Delhi: Small is set to get bigger. Government is planning to revise investment limits for classification of micro, small and medium enterprises and also link it to employment and turnover, as is the case in several parts of the world.
At present, in case of manufacturing, any unit with investment between Rs. 25 lakh and Rs. 5 crore is classified as a small enterprise, while those with investment of Rs. 5-10 crores are classified as medium. In case of services, the limits are lower, given the lower capital requirement in the sector. Investment includes funds invested in tools, plant and machinery, power generator and fire fighting equipment. Although the issue has been discussed with stakeholders, a final decision has not been taken and the new caps have not been worked out so far.
Let us wait and see.
The Cabinet recently cleared a policy that mandats at least 20% government procurement from the units.
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