New Delhi: Finance Minister Nirmala Sitharaman on Wednesday said that the definition of the Medium, Small and Micro Enterprises (MSME) has now been changed so that they can grow in size and get benefits.
“Definition being changed for MSMEs in their benefit. So that they can grow in size and get benefits,’’ the FM said while briefing the nation on the Centre's 20 lakh crore economic package announced by PM Narendra Modi on Tuesday.
“Investment limit, which defined MSMEs, has been revised upwards. Additional criteria being brought in is turnover size - earlier differentiation between manufacturing and service MSMEs will be categorised similarly,’’ the FM said.
The Finance Minister said that for the MSMEs which want to expand but couldn't do because of coronavirus, the government will provide Rs 50,000 crore equity fusion.
‘’With investment up to Rs 1 crore and with a turnover of up to Rs 5 crore will now qualify to be Micro industries now,’’ the FM said.
She also announced Rs 3 lakh crore collateral-free automatic loan for businesses, including MSMEs.
This will benefit 45 lakh small businesses, she said detailing parts of the Rs 20 lakh crore economic stimulus package.
The loan will have 4-year tenure and will have a 12-month moratorium, she said.
Also, Rs 20,000 crore subordinate debt will be provided for stressed MSMEs, the FM said adding this would benefit 2 lakh such businesses.
She also added that the government will provide stressed MSMEs with equity support.
‘"Government will facilitate the provision of Rs 20,000 Crores as subordinate debt,'' the Finance Minister Nirmala Sitharaman said.