Govt approves additional package for MSMEs

The Union Cabinet headed by Prime Minister Narendra Modi on Wednesday gave its approval to an additional Rs 5,000 crore package for supporting Micro and Small Enterprises (MSEs).

Finance Minister Arun Jaitley said that the approved package envisages augmenting the corpus of medium small and micro enterprises by Rs 5,000 crore to a total of Rs 7,500 crore. The corpus will be fully funded by the central government, Jaitley told reporters after the Cabinet Meeting.

“The fund augmentation will lead to an increase in the loan limit under the scheme from Rs 1 crore to Rs 2 crore,” he said. “Augmentation of the corpus would facilitate larger flow of credit to MSEs. This in turn, would lead to increased output and employment, and thereby, promote equity and inclusiveness,” an official statement said.

On December 31, Modi had announced increase in credit guarantee scheme for the MSME sector.