MSMED may protect medium firms too

The Centre may consider including medium enterprises for the protection granted under MSME Development (MSMED) Act, 2006, to resolve payment disputes.

- Manas Pimpalkhare

MSME stands for micro, small and medium enterprises.

The government is considering amendments to definitions in the MSMED Act, two people in the know said, at a time when industry stakeholders are demanding the inclusion of medium enterprises in the definition of "supplier" in the law.

Consultations on amendments to certain definitions in the MSMED Act are ongoing, one of the officials mentioned above told Mint, requesting anonymity. Only micro and small businesses are currently covered by the protection.