GUWAHATI: Union Finance Minister Nirmala Sitharaman, on 13th May, presented the first detailed distribution of the Rs 20 lakh crore package announced by PM under Aatma Nirbhar Bharat.
The tranche comprises about 15 different measures, with six of them for Micro, Small & Medium Enterprises (MSMEs), two for employee provident funds, two for Non Banking Financial Corporations (NBFCs), two for Micro Finances (MFIs), one to Distribution Companies (Discoms), one to real estate, 3 tax related and one for contractors.
Of the 6 measures provided for MSMEs, firstly Rs 3 lakh crore worth of collateral-free automatic loan for MSMEs. Borrowers with up to Rs. 25 crore outstanding and Rs. 100 crore turnover are eligible.
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Secondly, stressed MSMEs will be provided with equity support. Government will facilitate the provision of Rs. 20,000 crores as subordinate debt.
Thirdly, equity infusion for MSMEs through 'Fund to Fund', to be operated through a Mother Fund and a few Daughter Funds. This is to help extend the MSMEs size and capacity.
Fourthly, definition of MSMEs is revised to their benefit. Investment limits have been revised upward. Further, turnover of MSMEs have been taken into consideration and distinction between manufacturing and service sectors to be eliminated.
Fifth, global tenders to be disallowed in government procurement of garments upto Rs. 200 crores.
Sixth, e-commerce markets to be provided for MSMEs. CPSR and government to honour every MSME receivables in 45 days.
