Decisions on MSMEs, agri in cabinet meeting
Prime Minister Shri Narendra Modi chaired a cabinet meeting on Monday in which key decisions related to MSMEs and agriculture were announced. Among other things, the cabinet has approved extension of repayment date for short term loans for agriculture and allied activities by banks which have become due or shall become due between 1st March, 2020 and 31st August, 2020. The government has also hiked paddy MSP by ₹53 per quintal to ₹1,868 per quintal for the 2020-21 crop year. The MSP for 14 kharif crops was also approved; farmers will now get 50-83% more than cost.
Once again, the definition for MSMEs has been tweaked. As per the latest one, the turnover limit for medium enterprises has been revised upward to ₹250 crore from ₹100 crore, as announced earlier. The government announced distressed assets fund of ₹4,000 crore for MSMEs and from now on MSMEs will be encouraged to go to stock markets. Further, ₹50,000 crore equity infusion for MSMEs has been cleared to strengthen their growth potential and to enable them to get listed on stock exchanges, this is for the first time MSMEs are getting such support. Also, NPA/stressed MSMEs will be eligible for the stressed assets package.