MSMEs to get non-tax benefits for three more years
New Delhi, Feb 28 : Micro, small and medium enterprises (MSME) can avail the benefits they now get for three years even after growing out of the category, Finance Minister P. Chidambaram announced Thursday.
"Too many (MSMEs) of them do not grow because of the fear of losing the benefits associated with staying small or medium," Chidambaram said while presenting the budget 2013-14 in the lower house of parliament.
"To begin with, I propose that the non-tax benefits may be made available to a MSME unit for three years after it graduates to a higher category."
Chidambaram said that to provide greater support to MSMEs, the budget proposed to enhance the refinancing capability of Small Industries Development Bank of India (SIDBI) from the current Rs.5,000 crore to Rs.10,000 crore per year.
He falso said that 15 new tool rooms and technology development centres will be set up to help MSMEs with the assistance of the World Bank, and a budgetary allocation of Rs.2,200 crore during the 12th Five-Year Plan period.