The Micro, Small and Medium Enterprises (MSME) (generally called SSI) are classified
in two Classes as per the MSMED Act, 2006.
- 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 or employing plant and machinery in the process of value addition
to the final product having a distinct name or character or use. The Manufacturing
Enterprise is defined in terms of investment in Plant & Machinery.
- 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 are as under
Manufacturing Sector Enterprises
|
Type
|
Investment in plant & machinery
|
|
Micro Enterprises
|
Does not exceed Rs. 20 lakhs
|
|
Small Enterprises
|
More than Rs. 25 lakhs but does not exceed Rs. 5 crores
|
|
Medium Enterprises
|
More than Rs. 5 crores but does not exceed Rs. 10 crores
|
Service Sector Enterprises
|
Type
|
Investment in equipment
|
|
Micro Enterprises
|
Does not exceed Rs.10 lakhs
|
|
Small Enterprises
|
More than Rs. 10 lakhs but does not exceed Rs. 2 crores
|
|
Medium Enterprises
|
More than Rs. 2 crores but does not exceed Rs. 5 crores
|
Benefits:
- Collateral Free loans from banks
- Reservation policies to manufacturing / production sector
- Very easy to get Licenses, approvals and registrations
- Special consideration on international trade fairs
- Octroi benefits
- Waiver of Stamp Duty and Registration Fees
- Exemption under Direct Tax Laws
- Bar Code registration subsidy
- Subsidy on NSIC Performance and Credit ratings
- Eligible for IPS subsidy
- Counter Guarantee from Government of India through CGSTI
- Protection against delay in payment
- Reduction in rate of Interest from banks
- 15% CLCSS subsidy to purchase fully
- Waiver in Security Deposit in Government
- Concession in electricity bills
- Reimbursement of ISO Certification
- Excise Exemption Scheme
- Preference in procuring Government
- P15% weightage in price Preference
- 1% exemption on interest rate on OD
- 50% subsidy for patent registration