GOVT announces bonanza for MSMEs, Annadatas; PM launches CHAMPIONS exclusive APP for MSMEs

Public Sector Banks have sanctioned collateral-free loans worth three thousand 200 crore rupees in a single day under the Atmanirbhar Bharat Abhiyan,  announcing this Union Minister for  Finance & Corporate Affairs  Nirmala Sitharaman says that largely the Micro, Small and Medium Enterprises (MSMEs) located in over three thousand TIER-2 towns were covered on the first day of sanctions of the collateral-free loans. The amount sanctioned will help the MSMEs to meet the expenses towards payment of salaries, rent and restocking of goods, she added. She was speaking about the stimulus of over 20 lakh crore rupees under the Atmanirbhar Bharat Abhiyan. Under this scheme, MSME and borrowers from other stressed sectors with up to 25 crore rupees of total borrowing are allowed to avail an additional 20 percent of the outstanding loan from banks and other financial institutions. The additional lending by banks and financial institutions is 100 percent guaranteed by the Government of India. The Union Cabinet earlier gave nod to the extend helping hand to the Micro, Small and Medium Enterprises and farmers. Briefing media about cabinet decisions,

Information and Broadcasting Minister Prakash Javadekar informed that the Cabinet has revised the definition of MSMEs, a decision which will lead to the inclusion of many industrial units under its ambit. Those enterprises with investment up to 50 crore rupees and turnover of up to 250 crore rupees will now be able to avail of the benefits of the MSME sector. All export turnovers of such enterprises will also remain exempted from the total turnover. Haling the move, MSME Minister Nitin Gadkari said, the Union  Cabinet chaired by Prime Minister  Narendra Modi has also approved a distressed MSME fund of 20 thousand crores for extending helping hand to the enterprises. This decision will benefit over two lakh units in the country. He highlighted the decision of the creation of Fund of Funds with an initial outlay of 50 thousand crore rupees. The amount will be infused in the MSME sector through the equity route. Announcing relief for the farmers, Agriculture Minister Narendra Singh Tomar said, the Minimum Support Prices (MSP) for 14 Kharif crops will be increased up to 83 percent, to ensure better returns for their farm produce. The government hiked MSP for paddy by 53 rupees per quintal to one thousand 868 rupees per quintal while the MSP for cotton has been increased by 260 rupees to five thousand 515 rupees per quintal for the current crop year.

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