In a Press Release dated 2nd June, 2020 it has been informed that a special meeting of Cabinet Committee on Economic Affairs (CCEA) was convened under the Chairmanship of the Prime Minister wherein the upward revision of Micro Small and Medium Enterprises (“MSME”) definition and modalities/ road map for laying down effective implementation was approved.
Key Highlights:
- The Government has approved provisioning of Rs 20,000 crore as subordinate debt to provide equity support to the stressed MSMEs.
- Approval for equity infusion of Rs. 50,000 crore for MSMEs through Fund of Funds (FoF) has also been granted. This will establish a framework to help MSMEs in capacity augmentation.
- Under the Atmanirbhar package, the MSME sector has not only been given substantial allocation but has also been accorded priority in implementation of the measures to revive the economy.
- The following announcements have been made to provide immediate relief to the MSME Sector:
- Rupees Three lakh crore collateral-free automatic loans for MSMEs to meet operational liabilities, buy raw material and restart businesses.
- Revision of MSME definition to render maximum benefits to the sector.
- Disallowing global tenders in procurements upto Rs. 200 crores- to create more opportunities for domestic players.
- Clearing of MSME dues by the Government and Public Sector Units within 45 days
- To manage all this, a robust ICT based system called CHAMPIONS has also been launched by the Ministry of MSME.
Source: Press Information Bureau
