09 March 2013
The Micro, Small And Medium Enterprises Act, 2006, is enacted for facilitating the promotion and development and enhancing the competitiveness of these industries and for the matters connected or incidental thereto. This act has following Objectives to achieve :-
Establish a high level board and advisory committee consisting of various stakeholders for the development of these enterprises
Ensure timely payments to these industries.
Ensure smooth, timely and appropriate flow of funds to prevent sickness in these industries.
Facilitate the procurement of goods and services.
Formulate policies, programmes, guidelines, etc. to enhance the competitiveness of these industries.
To formulate reservation policies for manufacturing/production sector enterprises.
Alternate Dispute Resolution System
Classification of Enterprises
A) In the case of enterprises engaged in manufacture or production of goods pertaining to any industries specified in First Schedule to the Industries (Development And Regulation) Act, 1951 as
Nature of enterprise
* Investment in Plant and Machinery
Micro
Does not exceed Rs. 25 lakhs
Small
More than Rs. 25 lakhs but less than 5 crores
Medium
More than Rs. 5 crores but less than 10 crores
b) in the case of enterprises engaged in providing or rendering services as:
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