Credit and Finance for MSMEs: Cabinet has also approved the Rs 50,000 crore equity scheme for MSMEs, which was announced by the Finance Minister Nirmala Sitharaman, with a corpus of Rs 10,000.
Ease of Doing Business for MSMEs: The government on Monday approved the revision in the definition of MSMEs to further improve ease of doing business. For micro-enterprises, the limit for investment and turnover was increased to Rs 1 crore and Rs 5 crore respectively. On the other hand for small enterprises, the investment and turnover limit was increased from Rs 1 crore and Rs 5 crore respectively to Rs 10 crore and Rs 50 crore. Similarly, for medium enterprises, the limit for investment was increased to Rs 50 crore and for turnover, the limit was increased to Rs 250 crore. The announcement was made in a press briefing environment minister Prakash Javadekar, MSME minister Nitin Gadkari and agriculture minister Narendra Singh Tomar.
Cabinet has also approved the Rs 50,000 crore equity scheme for MSMEs, which was announced by the Finance Minister Nirmala Sitharaman earlier this month, with a Fund of Funds corpus of Rs 10,000. The scheme will also encourage MSMEs to get listed on the stock exchanges. The Fund of Funds will be operated through a mother fund and few daughter funds.
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The revision in definition was announced by Sitharaman as part of the economic package from investment in plant and machinery or equipment based to a mix of investment and turnover. Manufacturing units with investing less than Rs 25 lakh, less than Rs 5 crore, and less than Rs 10 crore in plant and machinery or equipment were defined as micro, small and medium enterprises respectively. For services businesses, the investment limit was less than Rs 10 lakh, less than Rs 2 crore and less than Rs 5 crore as micro, small and medium enterprises respectively.
Gadkari had recently said that a committee has been appointed by Prime Minister Narendra Modi to be headed by Rajnath Singh for resolving any problem in the implementation of the Rs 3 lakh crore collateral-free loan scheme for MSMEs. , said MSME Minister Nitin Gadkari on Sunday. In an online interaction with the members of the Pune-based Mahratta Chambers of Commerce, Industries and Agriculture (MCCIA), Gadkari asked small businesses to email him directly in case of problems faced by them in securing credit under the scheme.