Categories: Business

Finance minister announces Stimulus package for MSME sector

Photo: INDIA TV

Government opens treasury for MSME sector, 6-point relief for small industries announced

new Delhi. The Finance Minister has today announced several steps to provide relief to the MSME sector. It also includes a loan of Rs 3 lakh crore on easy terms. According to the Finance Minister, these loans will be for 4 years without guarantee, in which there will also be a 4-month mortuary or moratorium. There will be a 100 percent credit guarantee cover on the loan. The benefit of this scheme can be availed till 31 October. According to the Finance Minister, 45 lakh small industries will benefit from this.

To help the besieged MSME units, the Finance Minister has announced a provision of Rs 20 thousand crore. It will help MSME, which is facing debt and cash crisis, to come out of the crisis.

Provision of Fund of Funds for expansion to small performing industries. In this, equity of 50 thousand crore rupees will be put into industries. Which will help these industries to expand.

The government has also changed the definition of MSME, which will help the sector. The government has raised the upper limit for the MSME sector. The upper limit of investment for micro industries in the manufacturing unit and service sector has been raised to Rs 1 crore and the turnover limit to Rs 5 crore. At the same time, the upper limit of investment has been increased to Rs 10 crore for small industries and the business limit has been increased to Rs 50 crore and the upper limit of investment for medium industries has been increased to Rs 20 crore and business limit has been increased to Rs 100 crore. According to the Finance Minister, the MSME sector will be able to expand with more confidence and will also get the benefits of MSME sector.

Special steps have been announced to support local industries. There will be no tender of less than 200 crore rupees. According to the Finance Minister, this step will provide better and more opportunities to the domestic MSME sector.

Government companies have been directed to pay the outstanding bills of MSME companies in 45 days, as well as steps have been taken to increase sales through online portal to deal with the Corona crisis. At the same time, the MSME sector will be helped to create new opportunities through events like trade fairs.

This post was published on May 14, 2020 3:45 am

Content Team

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