Union Min RS Prasad lauds govt's Rs 3 lakh cr strong booster for MSMEs; 'more to follow'

Union Law Minister Ravi Shankar Pras on Wednesday said that government's anuncement of Rs 3 lakh crore will act as a strong booster for micro, small and medium sector industries and it will directly impact nearly 45 lakh MSMEs. He ded that first series of measures is a "wholesome pack" to fulfilment of PM's promise and surely a lot of ors are to follow. 

'Even definition of MSME has changed'

Speaking to news ncy ANI, Pras said, "Finance Minister Nirmala Sitharaman has outlined first series of follow-up action as Prime Minister indicated. What is important is 3 lakh crore of strong booster for MSME industries. This is going to directly impact nearly 45 lakh MSMEs saving ir jobs, ir business opportunity, making m more competitive. Even definition of MSME has changed."

"More important in contract for government of India supply up to 200 crores, MSME will also be allowed to compete. Also good liquidity for n-banking financial sector, partial credit scheme, and government standing as a guarantee for MSME loans by bank plus or tax incentives to construction, or sectors. first series is a wholesome pack to fulfilment of PM's promise and surely lot of ors are to follow," Union Minister ded.

Finance Minister Nirmala Sitharaman on Wednesday anunced a series of liquidity measures for millions of small businesses reeling under impact of Coronavirus lockdown, including collateral-free automatic loans worth Rs 3 lakh crore. Borrowers with up to Rs 25 crore outstanding and Rs 100 crore turver will be eligible. se loans will have a four-year tenure and have a moratorium for 12 months on principal payment.

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re will be a 100% credit guarantee cover to banks and n-banking finance companies on principal and interest. scheme can be availed till October 31. "This will enable 45 lakh micro, small and medium enterprise (MSME) units to resume business activity and also safeguard jobs," said FM Sitharaman.

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anuncements came a day after Prime Minister Narendra Modi anunced a Rs 20 lakh crore special ecomic pack amid nationwide COVID-19 lockdown. "Prime Minister laid out a comprehensive vision, and that vision was laid out after wide consultations with several sections of society... Essentially this is to spur growth and to build a very self-reliant India and that is why this whole initiative is called Atmanirbhar Bharat Abhiyan," Sitharaman said.

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(With ANI inputs)