Government to infuse Rs 20,000 crore into MSME sector

In a bid to boost the MSME sector in the country, the cabinet committee on Monday announced multiple steps taken by the government and added Rs 20,000 crores of infusion into the sector.

coronavirus, coronavirus latest news, coronavirus news, lockdown, lockdown guidelines, lockdown 4, covid 19 vaccine news, covid 19 india, coronavirus live news, corona news, corona latest news, india coronavirus, coronavirus live news, coronavirus latest news in india, coronavirus live update, covid 19 tracker, india covid 19 tracker, covid 19 tracker live, corona cases in india, corona cases in india

Union minister Nitin Gadkari. (PTI/File Photo)

In a bid to boost the MSME sector which has been the worst hit due to the nationwide coronavirus (COVID-19) lockdown, the Cabinet Committee on Monday announced that it will infuse Rs 20,000 crores into the sector.

Initially while addressing the cabinet briefing, Union Minister Prakash Javadekar said, “Cabinet today has approved Rs 20,000 crore subordinate debt for stressed MSMEs, this will benefit 2 lakh stressed MSMEs.”

#Cabinet approves modalities & road map for implementing 2 Packages for #MSMEs

✅Rs 20,000 Cr package for Distressed MSMEs
✅Rs 50,000 Cr equity infusion through Fund of Funds

Fully paved way for Energising MSME Sector through ‘#AtmaNirbharBharat Package’:@nitin_gadkari

— K.S. Dhatwalia (@DG_PIB) June 1, 2020

Javadekar said the decision on equity infusion will also enable MSMEs to get listed on stock exchanges.

This was the first meeting of the Cabinet after the Narendra Modi-led NDA government completed its first year of the second term at the centre.

The latest move of Rs 20,000 crore infusion comes weeks after collateral-free loans for MSMEs worth Rs 3 lakh crore was announced by Finance Minister Nirmala Sitharaman as part of the Atmanirbhar Bharat Abhiyan economic package.

Separately, while detailing the packages on MSME sector, Nitin Gadkari, the minister for MSME and Road Transport and Highways said, “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.”

Apart from this, the Cabinet also approved the new definition of the MSME units as proposed by the finance ministry. Micro enterprises can now invest up to Rs 1 crore and have a turn over of Rs 5 crore.

Story continues below this ad

Separately, for the small enterprises, the limit for investment has been raised to Rs 10 crore along with a turn over limit of Rs 50 crore. For medium enterprises, the investment limit has been raised to Rs 20 crore and the turnover limit has been raised to Rs 250 crore (from Rs 100 crore as announced earlier).

– with PTI inputs