Will take up MSMEs' suggestion to raise turnover cap for small units to PM, finmin: Union Minister Narayan Rane

Union Minister Narayan Rane on Wednesday said he will take up the suggestion of MSME associations to raise the turnover limit for classifying 'small' enterprises to Rs 100 crore with the prime minister and the finance ministry.

As per the existing classification of MSMEs, a unit is categorised as a small enterprise if its investment in plant and machinery or equipment does not exceed Rs 10 crore and the turnover is less than Rs 50 crore.

Referring to the suggestion regarding enhancing the ceiling of turnover for small units from Rs 50 crore to Rs 100 crore, the MSME minister said: "I will put forth this suggestion in front of the prime minister and finance ministry."

Pointing out that MSMEs contribute 50 per cent to India's exports and 30 per cent to the country's Gross Domestic Product (GDP), the minister said the endeavour is to further boost exports from the Micro, Small and Medium Enterprises (MSME) sector.

Rane was speaking at an event where he interacted with various MSME associations.

The interaction revolved around suggestions on the draft MSME policy and issues, if any, related to registration on the Udyam portal, CIBIL score, difficulties in availing collateral-free loans and financing new ideas.

Other topics of discussion included transparency in financial norms, access to global markets, technology development and R&D, lack of training, upgradation of skills, identification of clusters and appropriate infrastructure.

The interaction also took up issues concerned with pendency of delayed payment cases with Micro and Small Enterprise Facilitation Council (MSEFC), loan restructuring, prepayment/foreclosure charges, among others.