New Delhi, June 1: The Centre on Monday approved Rs 20,000 crore subordinate debt for stressed Micro, Small and Medium Enterprises (MSMEs). According to the government, the amount approved by the cabinet will benefit two lakh stressed MSMEs. The announcement was made during a press conference attended by Union Ministers Nitin Gadkari, Prakash Javadekar and Narendra Tomar were also present at the media briefing. In addition, The Narendra Modi Cabinet also approved Rs 50,000 crore equity infusion through Fund of Funds for MSMEs. The decision to boost the MSME sector was taken to mitigate the economic impact of COVID-19. Track Live Updates of Latest News Here:
Union Transport Minister Gadkari said, “Cabinet has approved modalities & 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." The Narendra Modi government also allotted Rs 4,000 crore as distressed asset fund for the MSMEs. According to Gadkari, MSMEs contribute to 29 percent of the Gross Domestic Product (GDP) and six crore MSMEs also contribute 48 percent to exports of the country. The Centre on Monday also raised the limit of MSMEs. The definition of MSME definition has also changed once again.
Media Briefing by Cabinet Ministers:
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Apart from announcing financial aid for MSMEs, the Modi government also announced relief measures for agriculture sector. The cabinet has approved MSP for 14 kharif crops. Due to this decision, farmers will get 50-83 percent more than cost. The cabinet also extended time period for repayment of loans for farmers till August this year.
Earlier in the day, PM Modi today chaired a Cabinet meeting in which some important decisions related to MSME sector and agriculture were taken. The meeting coincided with the completion of one year of the Modi government 2.0. and the beginning of 'Unlock 1.0'.