Advertisement

Updated May 14th, 2020 at 06:52 IST

Union Min RS Prasad lauds govt's Rs 3 lakh cr strong booster for MSMEs; 'more to follow'

Ravi Shankar Prasad on Wednesday said that govt's announcement of Rs 3 lakh crore will act as a strong booster for the micro, small & medium sector industries.

Reported by: Jay Pandya
Ravi Shankar Prasad
| Image:self
Advertisement

Union Law Minister Ravi Shankar Prasad on Wednesday said that the government's announcement of Rs 3 lakh crore will act as a strong booster for the micro, small and medium sector industries and it will directly impact nearly 45 lakh MSMEs. He added that the first series of measures is a "wholesome package" to the fulfilment of PM's promise and surely a lot of others are to follow. 

'Even the definition of MSME has changed'

Speaking to news agency ANI, Prasad said, "Finance Minister Nirmala Sitharaman has outlined the first series of follow-up action as the Prime Minister indicated. What is important is 3 lakh crore of strong booster for MSME industries. This is going to directly impact nearly 45 lakh MSMEs saving their jobs, their business opportunity, making them more competitive. Even the definition of MSME has changed."

"More important in the contract for the government of India supply up to 200 crores, MSME will also be allowed to compete. Also good liquidity for the non-banking financial sector, partial credit scheme, and the government standing as a guarantee for MSME loans by the bank plus other tax incentives to the construction, other sectors. The first series is a wholesome package to the fulfilment of PM's promise and surely lot of others are to follow," the Union Minister added.

Finance Minister Nirmala Sitharaman on Wednesday announced a series of liquidity measures for millions of small businesses reeling under the impact of Coronavirus lockdown, including collateral-free automatic loans worth Rs 3 lakh crore. Borrowers with up to Rs 25 crore outstanding and Rs 100 crore turnover will be eligible. These loans will have a four-year tenure and have a moratorium for 12 months on principal payment.

READ | Yogi Adityanath welcomes MSME measures, announces online loan fair worth Rs 2,000 crore

There will be a 100% credit guarantee cover to banks and non-banking finance companies on principal and interest. The scheme can be availed till October 31. "This will enable 45 lakh micro, small and medium enterprise (MSME) units to resume business activity and also safeguard jobs," said FM Sitharaman.

READ | FM Nirmala unveils India's Rs 20 lakh crore package: FULL list of first 15 measures here

The announcements came a day after Prime Minister Narendra Modi announced a Rs 20 lakh crore special economic package amid nationwide COVID-19 lockdown. "Prime Minister laid out a comprehensive vision, and that vision was laid out after wide consultations with several sections of the society... Essentially this is to spur growth and to build a very self-reliant India and that is why this whole initiative is called Atmanirbhar Bharat Abhiyan," Sitharaman said.

READ | Govt changes Definition of MSMEs, revises investment limit; here's what is different

READ | 'Working towards self-reliance': Army Chief General Naravane backs Aatmanirbhar Bharat

(With ANI inputs)

Advertisement

Published May 14th, 2020 at 06:52 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement

Trending Quicks

Federal Reserve Chair Jerome Powell
2 minutes ago
former dsp shailendra singh revealed criminal activity of Mukhtar Ansari
7 minutes ago
RBI
12 minutes ago
Lok Sabha Elections 2024 LIVE
13 minutes ago
TCS 'cash for jobs' scam
19 minutes ago
IBL Finance IPO
23 minutes ago
Congress Press Conference
23 minutes ago
Virat Kohli keeps a close watch on Gautam Gambhir
25 minutes ago
Good Friday
30 minutes ago
Life Insurance Corporation
30 minutes ago
Kerala Nirmal Lottery Sambad Friday Result
34 minutes ago
Advertisement
Advertisement
Advertisement
Whatsapp logo