Which one of the following is the prescribed investment limit for medium enterprises in the manufacturing sector as per the Micro, Small and Medium Enterprises Development Act, 2006?

Explanation

In the Industrial Policy of 1991, the investment limit for small units fixed in the 1985 policy was increased from Rs. 35 lakh to Rs. 60 lakh, and the investment limit for ancillary industries was increased from Rs. 45 lakh to Rs. 75 lakh. Under the Micro, Small and Medium Enterprises (MSME) Development Act, 2006 (effective date—October 2006), the investment limits for Micro, Small and Medium enterprises were determined by dividing them into two categories—(A) Manufacturing enterprises and (B) Service enterprises. After 2006, the investment limits for plant and machinery were as follows— <table> <tr> <th></th> <th>Micro enterprise</th> <th>Small enterprise</th> <th>Medium enterprise</th> </tr> <tr> <td>Manufacturing sector</td> <td>Not more than Rs. 25 lakh</td> <td>More than Rs. 25 lakh but not more than Rs. 5 crore</td> <td>More than Rs. 5 crore but not more than Rs. 10 crore</td> </tr> <tr> <td>Service sector</td> <td>Not more than Rs. 10 lakh</td> <td>Small enterprise – More than Rs. 10 lakh but not more than Rs. 2 crore</td> <td>More than Rs. 2 crore but not more than Rs. 5 crore</td> </tr> </table> ## Page 48 The new definition of MSME (plant and machinery or equipment) effective from 1 July, 2020 is as follows— <table> <tr> <th>Micro –</th> <th>Small</th> <th>Medium –</th> </tr> <tr> <td>Investment – Up to Rs. 1 crore<br>Turnover – Up to Rs. 5 crore</td>