Ministry for MSME has reclassified the MSME criterion that replaces the practice of accounting for original price of plant and machinery with the written down value.
Apparel manufacturers have thanked the Minister for MSME Nitin Gadkari for the same.
Appreciating the initiative, Apparel Export Promotion Council (AEPC) Chairman Dr. A. Sakthivel said “This measure will bring in many more enterprises within the fold of MSME expanding the sector by around 20 per cent.
The RBI came out with a notification instructing banks to account for the written down value of plant and machinery or equipment and not the acquisition or original price, which was applicable in the earlier classification criteria. This will enable more enterprises to avail the MSME benefits.
Dr. Sakthivel further added that the extension of the Validity of Entrepreneurs Memorandum (EM) Part II and Udyog Aadhaar Memorandum (UAMs) of the MSMEs obtained till 30 June 2020 to 31 March 2021, will enable MSMEs to avail COVID-related benefits for a longer period.
“These benefits have accrued to us primarily because of the revised classification of the MSME criteria. The present crisis is the biggest challenge faced by apparel export industry and I am positive that these measures will help in mitigating the suffering of the industry and the millions of our workers,” he added.
It is pertinent to mention that around 70 per cent of the apparel manufacturers are in MSME category.
