Cabinet okays Rs 20,000-crore relief for MSMEs

The Centre on Monday further amended the definition of MSMEs (micro, small and medium enterprises) by revising the turnover of medium enterprises to up to Rs 250 crore from Rs 100 crore announced last month.

It also approved the modalities for implementing the Rs 20,000-crore package for MSMEs and Rs 50,000-crore equity infusion through Fund of Funds announced earlier.

The Union Cabinet also approved a special micro-credit facility scheme — PM SVANidhi or PM Street Vendor’s Atmanirbhar Nidhi — for providing affordable loans to street vendors.

Over 50 lakh people, including vendors and hawkers are likely to benefit from this scheme, Information and Broadcasting Minister Prakash Javdekar told reporters after the meeting.

The goods supplied by them include vegetables, fruits, tea, pakodas, textile, apparel, footwear, books and stationeries. The services provided by them include laundry, barber, cobbler and pan shops.

The Rs 20,000-crore subordinate debt for stressed MSMEs will benefit two lakh units, the Rs 50,000-crore equity infusion will strengthen their growth potential and enable them to get listed on the stock exchanges.

"After the package announcement on May 13, there were several representations that the announced revision is still not in tune with market and pricing conditions and it should be further revised upwards. Keeping in mind these representations, the prime minister decided to further increase the limit for medium manufacturing and service units. Now it will be Rs 50 crore of investment and Rs 250 crore of turnover," Javdekar said.