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Monday, 1 June 2020

MSME Definiton Further Revised by Union Cabinet dt. 01st June 2020


SME Khabar ArticlesUNION CABINET DECISIONS ON  MSME AND AGRICULTURAL SECTORS DT. 01.06.2020

Union Ministers Prakash Javadekar, Nitin Gadkari and Narendra Singh Tomar addressed the media on the decisions made at Cabinet dated 01st day of June, 2020.

Key Highlights:

ABOUT MSME
Cabinet approves revision in definition of MSMEs
1.      Cabinet approves Rs 20,000 crore distressed assets fund for MSMEs
2.      The scheme provides debt facility of up to 15 percent of the promoter contribution or Rs 75 lakh to the promoters.
3.      Union Cabinet clears new definition of MSMEs, limit raised to Rs 250 crore

Existing Definition:


New Definitions – Enterprises (1st day of june 2020):

micro enterprises
Enterprises with les than Rs 1 crore investment and less than Rs 5 crore turnover would now qualify as micro enterprises
small enterprises
Businesses with an investment of less than Rs 10 crore and turnover less than Rs. 50 crore will now be classified as small enterprises
medium enterprises
The definition for medium enterprises has been revised upwards to an investment less than Rs. 50 crore and a turnover less than Rs 250 crore.

·         Rs 50,000 crore equity investment assistance for MSMEs
·         Cabinet clears a credit scheme for street vendors. Scheme for street vendors is called PM SVANIDHI

Other Initiatives:
·         Farmers will get time till August 31 to repay their loans, and those who clear their dues can avail loans at a 4 percent interest rate.
·         Norms for loans to farmers under Kisan credit card scheme have been eased.
·         Cabinet approves hike in minimum support price (MSP) for 14 crops. Farmers will get 50-83 percent more than the cost for kharif crops.
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