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.
Disclaimer:
IN NO EVENT THE AUTHOR SHALL BE LIABLE FOR
ANY DIRECT, INDIRECT, SPECIAL OR INCIDENTAL DAMAGE RESULTING FROM OR ARISING
OUT OF OR IN CONNECTION WITH THE USE OF THIS INFORMATION.
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