70 % listed firms likely to qualify for benefits under the MSME schemes
As per the recent reclassification, the Government has increased the limit for medium scale companies by enhancing the investment limit from Rs. 20 crores to Rs.50 crores and turnover limit from Rs. 100 crores to Rs. 250 crore. In other words, the companies with a maximum investment upto Rs. 50 crore or maximum turnover upto Rs. 250 crore in a year will come under the Medium Scale Enterprise. The new set of rules will come in effect from 1 July 2020.
In this regard, Capitaline, a corporate data provider agency has conducted a study based on a sample of 4,643 listed entities and has concluded that about 70% of them are expected to qualify for Micro, Small and the Medium Enterprises (MSME) category and can claim various benefits available to MSME sector.
As per the study results around 20 per cent companies are eligible for the tag of Medium enterprise based on turnover criteria mentioned. Another 19 per cent are likely to fall under small, and 30 per cent under micro enterprises under the turnover criteria.
It has also been decided that the turnover with respect to exports would not be counted in the limits of turnover for any category of MSME units, whether micro, small or medium. There are several benefits provided to the MSME sector such as subsidy in patents, lower interest rate on overdraft, subsidy for industrial promotion, lower electricity bills etc and would be available to such listed entities who will qualify the criteria.
