Ministry wants time cap on MSE sourcing

The ministry of micro,small and medium enterprises (MSME) has opposed a proposal by the department of industrial policy and promotion floated in a Cabinet note to let multi-brand retailers continue sourcing items from small and medium units without a time cap even after crossing a minimum investment limit.

The ministry is of the opinion that “a three-year period from the day an MSME outgrows the $2 million limit of would provide required space to equip itself… without being covered under the 30 per cent rule”,a source said.