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(Definition of Micro, Small and Medium Enterprises)
(a) Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below:
i) A micro enterprises is an enterprise where investment in plant and machinery (original cost) excluding land and building and the items specified as per Annexure does not exceed Rs.25.00 Lacs.
ii) A small enterprises is an enterprise where the investment in plant and machinery (original cost) excluding land and building and the items specified as per Annexure is more than Rs.25 Lakh but does not exceed Rs.5 Crore.
iii) A medium enterprise is an enterprise where the investment in plant and machinery (original cost) excluding land and building and the items specified as per Annexure is more than Rs.5 Crore but does not exceed Rs.10 Crore |
(b) Enterprises engaged in providing or rendering of services and whose investment in equipment (original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006) are specified below. These will include small road & water transport operators (owning a fleet of vehicles not exceeding ten vehicles), retail trade (with credit limits not exceeding Rs.10 Lakh), small business (whose original cost price of the equipment used for the purpose of business does not exceed Rs.20 Lakhs) and professional and self employed persons (whose borrowing limits do not exceed Rs.10 Lakhs of which not more than Rs.2 Lakhs should be for working capital requirements except in case of professionally qualified medical practitioners setting up of practice in semi-urban and rural areas, the borrowing limits should not exceed Rs.15 Lakhs with a sub-ceiling of Rs.3 Lakhs for working capital requirements):
i) A micro enterprise is an enterprise where the investment in equipment does not exceed Rs.10 Lakhs.
ii) A small enterprise is an enterprise where the investment in equipment is more than Rs.10 Lakhs but doe not exceed Rs.2 Crore.
iii) A medium enterprise is an enterprise where the investment in equipment is more than Rs.2 Crore but does not exceed Rs.5 Crore. |
Bank’s lending to medium enterprise will not be included for the purpose of reckoning under the priority sector.
Bank shall make all efforts to ensure timely and smooth flow of credit to such enterprises to minimize the incident of sickness among them and to enhance the competitiveness of such enterprises. Request of credit facilities received from such enterprises shall be considered with utmost sympathy and no application to be rejected without the permission of Head Office.
Annexure
1. The list of items, the cost of which shall be excluded while calculating the investment in plant and machinery in the case of the enterprises engaged in the manufacturing or production, processing or preservation of goods :-
i) Equipment such as tools, jigs, dyes, moulds and spare parts for maintenance and the cost of consumables stores
ii) Installation of plant and machinery
iii) Research and development equipment and pollution controlled equipment
iv) Power generation set and extra transformer installed by the enterprise as per regulations of the State Electricity Board
v) Bank charges and service charges paid to the National Small Industries Corporation or the State Small Industries Corporation
vi) Procurement or installation of cables, wiring, bus bars, electrical control panels (not mounded on individual machines), oil circuit breakers or miniature circuit breakers which are necessarily to be used for providing electrical power to the plant and machinery or for safety measures
vii)Gas producers plants
viii)Transportation charges ( excluding sales-tax or value added tax and excise duty) for indigenous machinery from the place of the manufacture to the site of the enterprise
ix) Charges paid for technical know-how for erection of plant and machinery
x) Such storage tanks which store raw material and finished produces and are not linked with the manufacturing process
xi) Fire fighting equipment. |
2. While calculating the investment in plant and machinery refer to paragraph 1, the original price thereof, irrespective of whether the plant and machinery are new or second handed, shall be taken into account provided that in the case of imported machinery, the following shall be included in calculating the value, namely
i) Import duty (excluding miscellaneous expenses such as transportation from the port to the site of the factory, demurrage paid at the port).
ii) Shipping charges.
iii) Customs clearance charges.
iv) Sales tax or value added tax. |
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