What is MSME
The full form of MSME is Micro, Small and Medium Enterprises. As per revised classification of MSME in notification issued by Ministry of Micro, Small and Medium Enterprises of India which is published in The Gazette of India vide No. 1532 dated 01/06/2020, the definition of MSME is as follows:
1. Micro Enterprise: –
2. Small Enterprises: –
3. Medium Enterprises: –
Effective Date of new notification of MSME: – 01/07/2020
Click Here to download Notification of revised classification of MSME
What is Micro Enterprise
where the investment in Plant and Machinery or Equipment does not exceed one crore rupees and turnover does not exceed five crore rupees.
What is Small Enterprise
where the investment in Plant and Machinery or Equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees.
What is Medium Enterprise
where the investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
| Classification | Investment in Plant & Machinery or Equipment (Not more than) | Annual Turnover (Not more than) |
|---|---|---|
| Micro Enterprises | Rs. 1 crore | Rs. 5 crore |
| Small Enterprises | Rs. 10 crore | Rs. 50 crore |
| Medium Enterprises | Rs. 50 crore | Rs. 250 crore |
Fiscal Incentives for MSME
All Manufacturing and selected Service industry units as defined by Ministry of MSME, Government of India from time to time are eligible to to avail Fiscal Incentives under Industrial and Business Development Policy – 2017 issued by Department of Industries and Commerce, Government of Punjab.
Access to Finance
- Investment subsidy by way of reimbursement of net SGST on intra-State sale
- Interest Subsidy on term loan in Border Districts and Kandi Area
- Interest Subsidy on term loan to SC Entrepreneur/ Women Entrepreneur
- Additional State Support of interest subsidy under Credit Linked Capital Subsidy Scheme (CLCSS) of Ministry of MSME, GOI
- Additional State Support of reimbursement of guarantee fee charged under Collateral Free Credit Guarantee Trust for Micro and Small enterprises (CGTMSE) Scheme
- Financial assistance to SMEs for ‘Emerge’ exchange platform set up by NSE
Access to Infrastructure
- Exemption from Electricity Duty
- Exemption/Reimbursement from Stamp Duty
Access to Technology
- Assistance for Technology Acquisition
- Additional support to ZED scheme of GOI.
- Reimbursement of expenses incurred for Energy Audit/ Water Audit/ Safety Audit
- Assistance for Environmental Compliance
Access to Market
- Reimbursement of expenses incurred for patent registration
- Additional Support for Performance and Credit Rating Scheme of Ministry of MSME
- Reimbursement of expenses incurred on quality certifications
- Design Clinic Scheme
- Vendor Development Program
- Marketing Support
- Freight Assistance to Export Oriented Units
- Annual State Awards to MSME, SC, Women and Exporters
FAQ about MSME
Full Form of MSME is Micro, Small and Medium Enterprises.
where the investment in Plant and Machinery or Equipment does not exceed one crore rupees and turnover does not exceed five crore rupees.
where the investment in Plant and Machinery or Equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees.
where the investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.
1. Investment subsidy by way of reimbursement of net SGST on intra-State sale
2. Exemption from Electricity Duty.
3. Exemption/Reimbursement from Stamp Duty
01/07/2020
https://pbindustries.gov.in/static/
Sh. Sibin C, IAS