Nirmala Sitharaman Announces 6 Major Steps For MSMEs, PM's Package To Spur Growth
The Union Finance Minister Nirmala Sitharaman remarked at a media conference on Wednesday, that the economic package of Rs. 20 lakh crore announced by Prime Minister Narendra Modi on Tuesday night, is aimed at spurring growth.
New Delhi: The Union Finance Minister Nirmala Sitharaman remarked at a media conference on Wednesday, that the economic package of Rs. 20 lakh crore announced by Prime Minister Narendra Modi on Tuesday night, is aimed at spurring growth. This is the reason why PM Modi called it "atmanirbhar Bharat" or self-reliant India, she pointed out.
This comprehensive package would be distributed over several sectors and they will be spelt out at a daily briefing. She added that she would lay out the blueprint for the medium and small enterprises (MSMEs) today.
Six important steps for MSMEs
The six major measures announced by the Finance Minister for MSMEs are:
Rs.3 lakh crore collateral-free automatic loan earmarked
MSMEs with outstanding loan of 25 crores or with 100 crore turnover will get these loans. These loans will be given under 100 per cent credit guarantee scheme with a moratorium of 12 months on payback.
No guarantee fees for loans
These loans will have a four-year tenure
Loans will be available till October 31.
45 lakh units stand to benefit
20,000 crore subordinated debt for stressed MSMEs
2 lakh MSMEs will benefit from this
This measure is aimed at stressed MSMEs
Fund of Fund for viable MSMEs
Fund of Fund for infusing 50,000 Cr for MSMEs through mother fund and daughter fund to help MSMEs prosper and expand. Eventually, MSMEs could even get listed in this fund.
This measure would be handholding on behalf of the government
Definition of MSME revised
The definition of MSME is being changed for their benefit.
Investment limit which defined MSMEs are being revised upwards. The benefits, therefore, will continue to accrue to MSMEs. Additional turnover size is being brought in as criteria.
No distinction between manufacturing and service MSME.
Investment can be one crore and turnover of up to five crores, but the unit would still remain in MSME.
No global tenders up to Rs. 200 crores
For government procurement, global tenders will be disallowed for tenders up to Rs. 200 crores to help MSMEs supply their products to mother units.
E-market linkage across the board for MSMEs for participation in trade fairs. The government of India will allow receivables of MSMEs over the next 45 days.
The Finance Minister said that the Prime Minister has stressed on a self-reliant India dependent on five key pillars—economy, infrastructure, technology-driven systems, demographic power and domestic demand.PM Modi pointed out that the growth would be based on important factors such as land, labour, liquidity and laws. The Finance Minister said that the reforms and measures initiated are aimed at increasing the ease of doing business.
Nirmala Sitharaman observed that PM Modi laid out a comprehensive vision after extensive discussions at various levels.
The Finance Minister said that it is important to recall some reforms and list out some of the important steps taken by the government over the last six years. DBT reforms and micro-insurance schemes helped the government reach out to the poor, she said. The government could ensure that money is directly transferred to the accounts of the poor migrant labourers, for instance, she pointed out. Similarly, the Finance Minister pointed out that Ayushman Bharat and Pradhan Mantri UjwalYojna could help the government reach out directly to the poor. The PM KisanYojna helped front load money into farmers accounts, she pointed out.
Nirmala Sitharaman also pointed out that PM Garib Kalyan Package was announced immediately after lockdown. Rs. 50 lakh insurance was announced for frontline COVID warriors. She added that Rs. 52,000 crore worth DBT was done and that 8 crore Ujwal Yojana beneficiaries have got free cylinders.
Nirmala Sitharaman revealed that Rs.18,000 crore worth grain and pulses had been provided and that 6.25 crore card-holders benefited from this. Similarly, 4 lakh taxpayers have benefited, she said.
Union Minister of State for finance, Anurag Thakur was also present at the media conference.