NEW DELHI: Two RSS-affiliates have opposed the MSME amendment bill and urged the Prime Minister Narendra Modi to halt its passage in Parliament.
The Micro, Small and Medium Enterprises Development (Amendment) Bill introduced in Lok Sabha last week, provides for change in the criterion of classification of MSMEs from the existing 'investment in plant and machinery or equipment' to 'annual turnover' of the enterprise.
It was introduced in Lok Sabha earlier this week by Union Minister Giriraj Singh.
A small enterprise is proposed to be defined as a unit with turnover of more than Rs 5 crore and up to Rs 75 crore and a medium enterprise with annual turnover of more than Rs 75 crore but not more than Rs 250 crore.
At present Micro units are those who employ plant and machinery of up to rupees 25 lakh, whereas for Small Scale Enterprises this limit is Rs 5 crores and Medium Industries Rs 10 crores.
Criticising the proposed legislation, Swadeshi Jagran Manch (SJM) co-convener Ashwani Mahajan said this change in definition of micro, small and medium enterprises would incentivise small manufacturers to shun their industries and become importers or traders.
"We urge upon the Prime Minister and MSME Ministry to immediately halt the process of passage of the bill in the interest of the small industries, make in India, entrepreneurship development and our youth with a dream of working for India," Mahajan said in a statement.
It is feared that with change in definition, small and medium enterprises would be able to enjoy the benefits of MSME by shifting from manufacturing to trading and assembling.
This could lead to rise in imports and adversely impact the indigenous manufacturing, he said.
Stating that 98 per cent of small units have a turnover of less than rupees 15 crores, Mahajan said this change in definition hardly 2 percent would attain the status of MSMEs at the cost of 98 per cent.
Lagu Udyog Bharti, another RSS affiliate, is also opposed to the proposed amendments, he said.