The central government on Monday announced that the Union Cabinet has decided to approve Rs 20,000 crore subordinate debt for stressed MSMEs (Micro, Small and Medium Enterprises). The government said that it would benefit over two lakh stressed MSMEs.
Addressing the media after the Union Cabinet meeting, Union Ministers Prakash Javadekar, Nitin Gadkari and Narendra Tomar said that the Centre has further changed the definition of the MSME sector, adding that turnover limit for medium enterprises has been revised upward to Rs 250 crore.
The Cabinet ministers further said that investment limit for medium enterprises has also been raised to Rs 50 crore, adding that distressed assets fund of Rs 4,000 crore has been ratified.
“Cabinet has approved modalities and road map for implementing two packages for MSMEs. Rs 20,000 crore package for distressed MSMEs and Rs 50,000 crore equity infusion through Fund of Funds,” Union Minister Nitin Gadkari said, as reported by news agency ANI.
The government said that the decision on equity infusion will also enable micro, small and medium enterprises (MSMEs) to get listed on stock exchanges.
The Centre also announced that to provide relief to the farmers, the Union Cabinet has decided to raise the minimum support prices (MSP) for 14 Kharif crops by 50 per cent to 83 per cent. The government further said that the farmers will get more time to repay their loans.
MSP rate for Paddy now at Rs 1,868 per quintal, Jowar at Rs 2,620 per quintal, Bajra at Rs 2,150 per quintal, and 50 per cent increase in Ragi, Moong, Groundnut, Soyabean, Til and Cotton, for the year 2020-21,” ANI quoted Union Minister Narendra Tomar as saying.
Tomar further announced that the repayment date for short-term loans for agriculture and allied activities by banks which have become due or shall become due between March 1, 2020 and August 31, 2020 have been extended.
Announces a Rs 10,000 loan for each street vendor, the Centre said that aims to benefit 50 lakh roadside vendors. It further announced a 7 per cent relief for street vendors.
The Centre also announced PM SVANiDHI – Pradhan Mantri Street Vendor’s Atma Nirbhar Nidhi – A Special Micro – Credit Facility Scheme to help the street vendors. The scheme would help the street vendors to resume their livelihoods that has been largely hit by the coronavirus crisis.
Earlier in the day, Prime Minister Narendra Modi chaired a meeting of the Union Cabinet. It was the first meeting of the Cabinet after the Central government entered into its second year of office.
Before that, the Cabinet Committee on Economic Affairs (CCEA) meeting was held today at the Prime Minister’s residence at 7 Lok Kalyan Marg in New Delhi.
PM Modi had recently announced a Rs 20 lakh crore economic stimulus package for the country fighting the coronavirus, stating that it will give a new impetus and a new direction to the self-reliant India campaign.