The Cabinet Committee on Economic Affairs (CCEA) has decided to infuse Rs 20,000 crore into it as well as approving further change in its definition. The move is seen as an attempt to boost the MSME (Micro, Small and Medium Enterprises) sector.
While addressing the cabinet briefing, Union Minister Prakash Javadekar said, “Cabinet today has approved Rs 20,000 crore subordinate debt for stressed MSMEs, this will benefit 2 lakh stressed MSMEs.”
The turnover limit for medium enterprises was revised upward to Rs 250 crore from Rs 100 crore as announced earlier.
The Cabinet also approved the increase in the Minimum Support Prices (MSPs) for all mandated Kharif crops for the 2020-21 marketing season.
The government has increased the MSP of Kharif crops to ensure remunerative prices to growers for their produce. The highest increase in MSP is proposed for nigerseed (Rs 755 per quintal) followed by sesamum (Rs 370 per quintal), urad (Rs 300 per quintal) and cotton (long staple) (Rs 275 per quintal). The differential remuneration is aimed at encouraging crop diversification.
Finance Minister Nirmala Sitharaman had earlier said the distinction between manufacturing and service units for MSMEs had been removed.
Under each category (micro, small and medium) the investment size criteria had been hiked to bring more companies under the definition of MSME. Additional criteria of turnover has been included to the definition of MSMEs.