The Centre has approved Rs 50,000 crore equity infusion for MSMEs to strengthen their growth potential. The MSME has been severely hit by the pandemic and the resultant lockdown.
Union Minister Prakash Javadekar said the decision on equity infusion will allow micro, small and medium enterprises (MSMEs) to get listed on stock exchanges. The Centre said a fund of funds with corpus of Rs 10,000 will be set up for the same. This is likely to help two lakh stressed MSMEs.
It has also announced a revision in the definition of MSME wherein the turnover limit for medium enterprises has been revised upto Rs 250 crore from the earlier Rs100 crore.
The Cabinet also gave its nod to two other important recommendations relating to the MSME sector, transport minister Nitin Gadkari said. A distressed Assets fund of Rs 20,000 crore has been approved for the restructuring of NPAs in the MSME sector, he said
The Cabinet, in a meeting chaired by Prime Minister Narendra Modi, has also approved upwards revision in MSP for 14 kharif crops. This means farmers are set to get 50% to 80% more than the input cost.
The government has hiked MSP for paddy by Rs 53 per quintal to Rs 1,868 per quintal for the 2020-21 crop year while the MSP for cotton has been increased by Rs 260 to Rs 5,515 per quintal.