Staff Reporter / New Delhi
Union Finance Minister Nirmala Sitharaman today announced several measures to revive micro, small, medium enterprises (MSME) that have taken a serious hit due to the lockdown implemented in order to curb the spread of covid-19.
Finance Minister announced ₹3 lakh crore collateral-free automatic loan for businesses, including MSMEs.
This will benefit 45 lakh small businesses, she said detailing parts of the ₹20 lakh crore economic stimulus package.
The loan will have 4-year tenure and will have 12-month moratorium, she said.
Also, ₹20,000 crore subordinated debt will be provided for stressed MSMEs, she said adding this would benefit 2 lakh such businesses.
The Finance Minister said a fund of funds for MSME is being created, which will infuse ₹50,000 crore equity in MSMEs with growth potential.
Also, MSME definition has been changed to allow units with investment up to ₹1 crore to be called micro-units in place of ₹25 lakh now.
Also units with turnover up to ₹5 crore to be called micro-units, she said, adding a turnover based criteria is being introduced to define small businesses.
The investment and turnover limits for small and medium businesses have likewise been raised to allow them to retain fiscal and other benefits, she said.
Global tenders will be banned for government procurement up to ₹200 crore, she said, adding this would help MSMEs to compete and supply in government tenders.