ABOUT MSME
Definitions of Micro, Small & Medium Enterprises
In accordance with the provision of Micro, Small & Medium
Enterprises Development (MSMED) Act, 2006 the Micro, Small and
Medium Enterprises (MSME) are classified in two Classes:
(a) Manufacturing Enterprises- The enterprises engaged in the
manufacture or production of goods pertaining to any industry
specified in the first schedule to the industries (Development
and regulation) Act, 1951). The Manufacturing Enterprise are
defined in terms of investment in Plant & Machinery.
(b) Service Enterprises: The enterprises engaged in providing
or rendering of services and are defined in terms of
investment in equipment.
The limit for investment in plant and machinery / equipment
for manufacturing / service enterprises, as notified, vide S.O.
1642(E) dtd.29-09-2006 are as under:
| Manufacturing Sector |
| Enterprises
|
Investment in plant &
machinery |
| Micro Enterprises |
Does not exceed twenty
five lakh rupees |
| Small Enterprises |
More than twenty five
lakh rupees but does not exceed five crore rupees |
| Medium Enterprises |
More than five crore
rupees but does not exceed ten crore rupees |
| Service Sector |
| Enterprises |
Investment in
equipments |
| Micro Enterprises |
Does not exceed ten lakh
rupees: |
| Small Enterprises
|
More than ten lakh rupees
but does not exceed two crore rupees |
| Medium Enterprises |
More than two crore
rupees but does not exceed five core rupees |
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|
