Key takeaways from cabinet briefing: Cheap loans for farmers, relaxed norms for MSMEs

Simran Kashyap

New Delhi, June 01: The Union Cabinet today approved major economic support measures for MSMEs, farmers, agricultural sector employees and street vendors, in what the government claimed were 'historic' decisions. Among the decisions taken today, MSME definition was relaxed, and easier loans for street vendors and farmers were announced.

Union ministers Prakash Javadekar, Nitin Gadkari and Narendra Tomar are addressing the media on the decisions taken by the Union Cabinet in a meeting today.

This is the first cabinet briefing after the Modi government has announced to gradually lift the lockdown restrictions.

Relief to farmers: Govt extends crop loan repayment till August

Javadekar said that in light of the effect of coronavirus on the economy, some "key steps have boost MSME and farm sector discussed in Cabinet meet".

Here are the Highlights:

  • Cabinet has made a road map for implementation of decisions for the MSME sector under the Atmanirbhar Bharat package
  • Cabinet has cleared definition changes for the MSME sector
  • Rs 50 crore investment, Rs 250 crore turnover for medium units
  • Rs 50,000 crore equity investment allowed in MSMEs
  • Relaxation of norms for loans to farmers under Kisan credit card scheme, says Javadekar
  • Provision for more loans for street vendors. 5 million vendors to benefit
  • Cabinet approves MSP for 14 kharif crops; farmers to get 50-83 per cent more than cost
  • Rs 50,000 crore equity investment allowed in MSMEs
  • It is for the first time since India's independence that such a decision has been taken for street vendors and footpath vendors
  • Farmers who will repay their loans timely till August 31, will get a 4 per cent waiver on their loans -- Agri minister.
  • Investment limit on plant and machinery increasedGovt hikes paddy MSP by Rs 53 per quintal to Rs 1,868 per quintal for the 2020-21 crop year
  • Govt increases cotton MSP by Rs 260 to Rs 5,515 per quintal for 2020-21
  • 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
  • MSP rate for Paddy now at Rs 1868 per quintal, Jowar-Rs 2620/quintal, Bajra-Rs 2150/quintal, and 50 per cent increase in Ragi, Moong, Groundnut, Soyabean, Til and Cotton, for the year 2020-21
  • The turnover limit for medium enterprises has been further amended to Rs 250 crore and investment limit has been raised to Rs 50 crore

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