• UGI USER
  • Jun 28, 2024
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GOVERNMENT TO AMEND 2006 MSME DEVELOPMENT ACT

Why in the news?

  • The Union Ministry of Micro, Small, and Medium Enterprises (MSME) is amending the MSME Development Act, 2006 to improve mechanisms for managing disputes related to delayed payments and address evolving sector needs.
  • The ministry plans to transform the Samadhaan portal from a dispute tracker to a comprehensive online resolution platform.
 Source: RESEARCHGATE

What are MSME’s?

Micro, Small, and Medium Enterprises (MSMEs) are businesses with investment and turnover limits defined by the government, playing a crucial role in economic development by fostering innovation, employment, and GDP growth.

Investment Limits for Manufacturing/Service Enterprises:

  • Micro: Up to ₹1 crore
  • Small: Up to ₹10 crore
  • Medium: Up to ₹50 crore

Turnover Limits (5 times investment):

  • Micro: Up to ₹5 crore
  • Small: Up to ₹50 crore
  • Medium: Up to ₹250 crore
About Samadhaan Portal

  • MSME Samadhaan: An online portal for MSMEs to file applications about delayed payments.
  • Application Process: Supplier MSE units can file complaints against buyers of goods/services.
  • Jurisdiction: Applications are submitted to the Micro & Small Enterprises Facilitation Council (MSEFC) in the respective state or union territory.

Associated Article:

https://universalinstitutions.com/private-labels-offer-indian-msmes-an-export-pathway/