The Union cabinet took a decision to pass proposals made by finance minister Nirmala Sitharaman in her Rs 20 lakh crore package
Bengaluru: The Union cabinet took a decision to pass proposals made by finance minister Nirmala Sitharaman in her Rs 20 lakh crore package.
The decision takes care of farmers, MSMEs and small vendors.
Union minister Prakash Javdekar said in this regard, “The government has today formulated the roadmap for implementing the measures for MSME sector, as announced in the Aatmanirbhar Bharat package. These measures will improve ease of doing business, attract investment and create jobs."
To the MSMEs, the government has infused Rs 50,000 crore equity and Rs 20,000 crore subordinate debt scheme for nearly two lakh units who are under financial stress and risk turning NPA.
Javdekar said, "This will strengthen their growth potential and will enable them to get listed on stock exchanges. This is for the first time MSMEs are getting such support.”
A note on small vendors:
Small vendors can also avail working capital loan of up to Rs 10,000 which will be repayable in monthly installments. This scheme will be extended to units like barber shops, cobbler and paan sellers. The loans can be availed by both urban and rural vendors and will get an interest subsidy for timely repayments.
Also Read: Rajeev Chandrasekhar bats for MSMEs
Last month, the Prime Minister also announced a financial package of Rs 20 lakh crore to bail the economy out of the mess.
In this regard, he had said, “This economic package is for that labourer of the country, for that farmer of the country who is working day and night for the countrymen in every situation, every season. This economic package is for the middle class of our country, which pays taxes honestly and contributes to the development of the country.”
This financial package is 10% of India’s GDP.
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Last Updated Jun 1, 2020, 7:19 PM IST