MSMEs seek changes in new notification

Coimbatore: Representatives of a micro, small and medium enterprise (MSME) association in the city have written to the Union minister for MSMEs, Nitin Gadkari, seeking changes in the reclassification of MSMEs.
Members of the Federation of Coimbatore Industrial Associations (Focia) said the new changes undermined the identity of micro and small units and shifted focus to the creamy layer of medium enterprises.
According to the gazette notification on June 26, a medium enterprise is where the investment in plant and machinery or equipment does not exceed Rs 50 crore and turnover does not exceed Rs 250 crore.
If implemented, it will equate a micro unit with less than Rs 1crore turnover with a medium enterprise, which has more than Rs 250crore turnover, excluding export turnover, said a Focia representative. “As per statistics, 95% of MSMEs are micro units, 4.5 % are small and only less than 0.5% are medium enterprises. The changes should focus to uplift the downtrodden.”
“The notification makes mandatory for MSMEs to register on the Udyam portal, which does not enhance the ease of doing business. The existing Udyog Adhar Memorandum (UAM) should be continued. The reservation for procurements by public sector undertakings from cottage, micro and small enterprises should be increased from 25% to 50%,” he added.