Rs 20,000 crore subordinate debt for stressed MSMEs approved by Union Cabinet
| Date :02-Jun-2020 |
Union Ministers Nitin Gadkari (C), Narendra Singh Tomar (L) and Prakash Javdekar brief the press on Cabinet decisions in New Delhi on Monday.
NEW DELHI :
THE Union Cabinet on Monday approved Rs 20,000 crore subordinate debt for stressed Micro, Small and Medium Enterprises, which will benefit two lakh such units, said Union Minister Prakash Javadekar. Addressing a press conference here along with Union Ministers Nitin Gadkari and Narendra Singh Tomar, Javdekar said: “Various key steps have been taken by the Government to boost MSMEs. A decision has been taken to infuse Rs 20,000 crore into this sector.” Subordinate debt is a debt owed to an unsecured creditor that in the event of liquidation canonlybepaidaftertheclaims of secured creditors have been met.“MSMEsplay a crucialrole in building an Aatma Nirbhar Bharat. Accordingly, MSMEs have been made an important part of Aatma Nirbhar Bharat Abhiyan package,” added Javadekar.
CABINETAPPROVESRS50,000 CR EQUITY INFUSION SCHEME TO SUPPORT MSMES:The UnionCabinet on Monday approved the modalities forimplementingRs 50,000 crore equity infusiontosupport Micro, Small and Medium Enterprises(MSMEs),whichwas announced last month as part ofAtmaNirbharBharatPackage last month to help the sector cope up with the situation created by COVID-19. It also approved Rs 20,000 crore subordinate debt for stressedMSMEs and a newdefinition for MSME under which enterpriseswithinvestmentsup to Rs 20 crore and a turnover of less than Rs 250 crore will now be defined as ‘medium’ units. MSP FOR KHARIF CROPS INCREASED:TheUnionCabinet on Monday approved an increase in minimum support price(MSP)fortheKharifcrops. Briefing the media here on the Cabinet decisions, Agriculture Minister Narendra Singh Tomar said that the MSP has been increased for all mandated Kharif crops for marketing season 2020-21.
The Cabinet also approved theextensionofrepaymentdate for short term loans for agriculture and allied activities by banks which have become due or shall become due between March 1, 2020, and August 31, 2020.Thedecisionhasbeentaken in view of the situation created by COVID-19. CABINET DECISIONS WILL BRINGPOSITIVECHANGESIN LIVES OF FARMERS,LABOURERS, WORKERS: PM:The decision staken by the Union Cabinet on Monday will bring about positive changes in the lives of farmers, labourers and workers, Prime Minister Narendra Modi has said as his Government enters second year in office. These decisions will bring tremendous benefits to the farmers, street vendors and micro,smallandmediumenterprises, he said. “To give impetus to the campaignfor a self-reliantIndia,we have not only changed the definition of MSMEs, buthave also approved several proposals to revive it.
This will benefit the small and medium scale industries, as well as create huge employment opportunities,” Modi said in a series of tweets in Hindi and English. PM Street Vendor’s Atma Nirbhar Nidhi(PMS VA Nidhi)is a very special scheme, he said. “For the first time, our street vendorsareapartofalivelihood programme. This scheme will ensure support for street vendors. It harnesses technology and emphasises on capacity building,” he said. India will prosper, the Prime Minister said, when its farmers prosper.