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Cabinet approves Rs 50,000 cr equity infusion for MSMEs; minimum support price for 14 kharif crops increased

The government also gave a nod to Rs 20,000 crore subordinate debt for stressed MSMEs, benefiting two lakh stressed small businesses

twitter-logoBusinessToday.In | June 1, 2020 | Updated 17:09 IST
Cabinet approves Rs 50,000 cr equity infusion for MSMEs; minimum support price for 14 kharif crops increased
The promoters of these small businesses will be given debt by banks

The Union cabinet on Monday approved Rs 50,000 crore equity infusion for MSMEs to boost their potential and enable them to get listed on stock exchanges. The government also gave a nod to Rs 20,000 crore subordinate debt for stressed MSMEs, benefiting two lakh stressed small businesses. The MSMEs stressed with bad loans will now be eligible for the stressed assets package, Union Minister Prakash Javadekar said. The promoters of these small businesses will be given debt by banks which will be infused as equity by promoters.

The government further eased the definition of MSMEs to Rs 1 crore investment and Rs 5 crore turnaround for micro industries and Rs 50 crore investment and turnaround of Rs 250 crore in medium enterprises. In the first cabinet meeting after lockdown relaxation, the government also gave a nod to a credit scheme of Rs 10,000 for each street vendor. More than 50 lakh street vendors are expected to benefit from a new scheme approved by the cabinet, Javadekar also said.

With an aim to help the farmers, the government decided to increase the minimum support prices (MSP) for 14 kharif crops by 50 per cent to 83 per cent, Union Agriculture Minister Narendra Tomar said while announcing cabinet decisions. The farmers will also benefit from reduced loans of Rs 3 lakh that will be disbursed till August 31, the government added.

Union Minister Nitin Gadkari, Agriculture Minister Narendra Singh Tomar, along with Information & Broadcasting Minister Prakash Javadekar announced major cabinet decisions.

Also read: Coronavirus crisis: India now 7th worst-hit country as count nears 2 lakh cases

Also read: Another superstorm to hit India on June 3; all you need to know about cyclon 'Nisarga'

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