FICO demands notification of classification of MSME from Development Commissioner MSME

Ludhiana, September 28, 2018: Delegation of Federation of Industrial & Commercial Organization (FICO), under the chairmanship of Gurmeet Singh Kular met Ram Mohan Mishra, Development Commissioner MSME Government of India and discussed in detail regarding the suspension of Credit Link Capital Subsidy Scheme, and the under noted points
• Reintroduction of Credit Link Capital Subsidy Scheme:
Credit Link Capital Subsidy Scheme was to facilitate technology up-gradation in MSMEs by providing an upfront capital subsidy of 15 per cent (on institutional finance of up to Rs.1 crore availed by them) for induction of well-established and improved technology. Government of India has suspended the scheme. We demand that Credit Link Capital Subsidy Scheme should be re-introduced as it provides the subsidy on the Bank Interest. Also, the banks should be instructed to facilitate the industry with the CLCSS Scheme
• The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
The Basic Motive of Government to introduce the CGTMSE was to provide the availability of bank credit without the hassles of collaterals/ third party guarantees to MSE’s. But banks in spite of the instructions of the government, banks are not lending the loans under CGTMSE schemes, you are kindly requested to look into the matter.
• Notification of Investment Limit of MSME:
Presently Micro Industry falls under 25 Lakhs, Small Industry falls under 5 Crores & Medium Industry falls under 10 Crore.
Last year, the Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved change in the basis of classifying Micro, Small and Medium enterprises from ‘investment in plant & machinery/equipment’ to ‘annual turnover’.
Revised definition – based on Annual Turnover:
(For both, Manufacturing and service rendering units)
• Micro enterprise - Turnover up to Rs 5 cr
• Small enterprise - Turnover Rs. 5 cr to 75 cr
• Medium enterprise - Turnover Rs. 75 cr to 250 cr
But the same has not been notified yet, therefore, it was requested to notify the same at the earliest to facilitate the industry.