The government will raise the investment limit for small scale units from Rs 1 crore to Rs 5 crore in the Small and Medium Enterprises Development (SMED) Bill which will be presented in the current session of Parliament. However, sectors like pharma and bio-technology with investment limits of Rs 5 crore will see no change with the passing of the Bill.
“For the first time, the government has defined medium enterprises as those which have an investment in plant and machinery between Rs 5-10 crore in the Bill,” a senior official said. The Bill will provide statutory backing to the price and purchase preference policy for the sector, he added.
