| The Micro, Small & Medium Enterprise Development Act, 2006 : Main Features & Implications |
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| The Parliament of India has enacted the Micro, Small and Medium Enterprises Development Act, 2006. The implications of the various provisions of the Act need to be studied in the backdrop of the general scenario of micro, small and medium enterprises in our State. |
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| A. The Objective of the MSMED Act |
| To facilitate the promotion and development of and enhancing the competitiveness of micro, small and medium, enterprises and for matters connected therewith or incidental thereto. |
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| B. Main Features of the MSMED Act |
| B.1. Constitution of a National Board for Micro, Small and Medium Enterprises to:— |
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Examine the factors affecting the promotion and development of micro, small and medium enterprises and review the policies and programmes of the Central Government in this direction; |
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Make recommendations for facilitating promotion and development of and enhancing the competitiveness of the micro, small and medium enterprises. |
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Advice the Central Government on use of the Fund or Funds constituted under Section 12 of the Act. |
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| B.2. Classification of Enterprises (Principal Trade in First Schedule of IDR Act, 1951) |
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| Nature of Enterprises |
Manufacturing or production of goods |
Providing or rendering service |
| Micro |
Investment in plant and machinery up to Rs. 25.0 lakhs. |
Investment in equipment up to Rs. 10.0 lakhs. |
| Small |
Investment in plant & machinery above Rs. 25.0 lakhs but not exceeding Rs.5.0 crores. |
Investment in equipment above Rs. 10.0 lakhs but not exceeding Rs.2.0 crores. |
| Medium |
Investment in plant & machinery above Rs. 5.0 crores but not exceeding Rs.10.0 crores. |
Investment in equipment above Rs. 2.0 crores but not exceeding Rs. 5.0 crores. |
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