The earlier concept of 'Industries' has been changed to 'Enterprises'
* Enterprises have been classified broadly into:
(i) Enterprises engaged in the Manufacture / production of Goods pertaining to any industry
(ii) Enterprises engaged in providing/Rendering of services.
* Manufacturing enterprises have been defined in terms of investment in plant and machinery (excluding land & buildings) and further classified into :
- Micro Enterprises - investment up to Rs.25 lakh.
- Small Enterprises - investment above Rs.25 lakh & up to Rs. 5 crore
- Medium Enterprises - investment above Rs. 5 crore & up to Rs.10 crore.
* Service enterprises have been defined in terms of their investment in equipment (excluding land & buildings) and further classified into:
- Micro Enterprises - investment up to Rs.10 lakh.
- Small Enterprises - investment above Rs.10 lakh & up to Rs.2 crore.
- Medium Enterprises-investment above Rs. 2 crore & up to Rs. 5 crore
It is not necessary to engage in manufacturing activity for self-employment. One can set up service enterprises as well .
Keeping in view the hardship faced by MSMEs during COVID 19 pandemic crisis, the government has announced several measures intended to provide the necessary support to deal with the current economic crisis such as:
Rs 3 lakh crore Collateral-free Automatic Loans
Rs 20,000 crore Subordinate Debt for Stressed MSMEs
Rs 50,000 croreEquity infusion for MSMEs through Fund of Funds
Global tenders to be disallowed up to Rs 200 crore
Revised definition of MSMEs
All receivables of MSMEs will be cleared by Government and PSU in 45 days
For more details, please visit the url: Click here for announcement details.