The investment limits in plant and machinery for the micro enterprises is proposed to be raised to Rs 50 lakh, of small enterprise to Rs 10 crore and medium enterprise to Rs 30 crore.

The existing limit are Rs 25 lakh, Rs 5 and Rs 10 crore respectively.

These investment limits were fixed by the Micro, Small and Medium Enterprises Development (MSMED) Act in 2006.

The amendment Bill introduced by Micro, Small and Medium Enterprises Minister Kalraj Mishra in the Lok Sabha proposes to raise the limits in view of rise in input costs.

"It is proposed to amend the MSMED Act to enhance the existing limit for investment in plant and machinery considering changes in price index and cost of inputs consistent with the emerging role of the MSMEs in various global value chain," Mishra cited in the statement of objects and reasons for the Bill.

The Bill also seeks to empower the central government to to revise the investment limits through a notification, the statement informed.

The classification of a unit as a micro, small or medium enterprise entitles them to avail certain concessions from the government as well as the banks.

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