The Union Cabinet meeting, chaired by Prime Minister Narendra Modi, on Monday, June 1, approved a narrow resource fund to facilitate the provision of Rs 20,000 crore as debt under MSMEs. This was the first meeting of the Union Cabinet after the entry of the Central Government into office in its second year.
During the meeting, a historic decision was taken that would make a difference in the lives of hardworking farmers in India, the MSME sector and those who work as street vendors.
Last month, Finance Minister Nirmala Sitharaman announced the MSME project under the ‘Atmamanirvar Bharat’ economic package.
Along with SIDB, the government has contributed Rs 4,000 crore to the Narrow Assets Fund through the investment of the Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE). CGTMSE, in turn, provides partial credit guarantee to banks.
Executive MSMEs, which have become or have been emphasized as non-performing assets, will be eligible for access to the fund.
Under this scheme, the Center will provide guarantee coverage to MSMEs of financial institutions up to 85 per cent for loans up to Rs.
It provides 15 per cent of the promoter contribution or a loan facility of Rs 75 lakh to the promoter, who will increase this amount as equity in the MSME unit.
According to the government, the move will benefit about 2 lakh MSMEs.
The Union Cabinet on Monday also approved a Rs 50,000 crore fund for MSMEs which will help these companies acquire equity.
The fund will be set up with a corpus of Rs 10,000 crore and will provide equity funds to MSMEs. It will be managed through a mother fund and a few daughter funds and its structure will help raise Rs 50,000 crore at the daughter fund level.
This will help MSMEs to be listed on the main board of the stock exchange.
Meanwhile, GDP data shows that India is experiencing the slowest growth in 11 years. The Indian Economic Watchdog estimates that about 120 million people lost their jobs in April.
CCEA has cleared 50-83% MSP increase for 14 kharif crops
The Cabinet Committee on Economic Affairs (CCAA) has approved a 50-833 per cent increase in the Minimum Support Price (MSP) for 14 kharif crops for the 2020-21 marketing season.
The maximum MSP hike was proposed in Nigeria (Rs 7,555 per quintal), oil after sesame (Rs 3,370 per quintal), urad (Rs 300 per quintal) and long main cotton (Rs 2,275 per quintal), the Union Minister of Agriculture and Farmers said. . Kalyan Narendra Singh is yours.
He added that the aim was to encourage diversification of differentiated crops.
(With agency input)