Question

The six measures for the MSME sector are a part of the Modi government’s ₹20 lakh crore stimulus package.
1. ₹3 lakh crore collateral-free Automatic Loans for Businesses, including MSMEs
An emergency credit line of ₹3 lakh crore for MSMEs from Banks and NBFCs. The credit line will be up to 20% of all outstanding credit as on February 29, 2020.
Tenure: 4 years, with a moratorium of 12 months on the principal payment.
This scheme is available till October 31, 2020. There will be no guarantee free, no fresh collateral required. 45 lakh units are likely to benefit from this move.

2. ₹20,000 crore subordinate debt for Stressed MSMEs
Stressed MSMEs will get ₹20,000 crore of subordinate debt. Under this scheme, promoters will be given debt by banks, which will then be infused into the MSME as promoter equity.
MSMEs which are stressed or classified as NPA will be eligible for this.

3. ₹50,000 crore equity infusion for MSMEs through Fund of Funds
MSMEs will be able to avail benefits of additional equity infusion of up to ₹50,000 crore via Fund of Funds.
This Fund of Funds will be set up with a corpus of ₹10,000 crore. This fund will be operated through a Mother Fund and a Daughter Fund.
The government says that this will help in expanding MSME size as well as activity. MSMEs will also be encouraged to get listed on stock exchanges.

4. New definition of MSMEs
The Indian government has also given a new definition of MSMEs, which increases the threshold limit for investment in these units.
This move will help the MSME sector grow in size, allowing them to expand their operations while still availing the benefits of MSME classification.
Classification Existing Classification (Only investment) Revised Classification (Manufacturing and Services combined)
Manufacturing
Investment Turnover
Micro 1 crore < ₹5 crore
Small ₹10 crore < ₹50 crore
Medium ₹20 crore < ₹ 100 Crore

5. Global tenders to be disallowed up to ₹200 crores
The Indian government will now disallow tenders up to ₹200 crores from foreign companies. The government justified the decision by saying that the move is aimed at protecting MSMEs from the unfair competition from foreign entities.
"Small units can now participate in the government purchases," the Finance Minister Said

6. Other interventions for MSMEs
E-market linkage to be provided across the board as trade fairs etc. will get rarer in the post-COVID world. All the pending dues from the government or government-owned companies will be cleared in the next 45 days.

Warm Regards
Pardeep Sharma
Shree Radhe Consultancy Karnal in hindi
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Answer 1

Answer:

Thank you very much @Pradeep Sharma

Explanation:

I had missed the session at 4 pm by Nirmala Sitharaman .

But thanks now I got some briefings..

Appreciate your work behind posting this..

Keep up your good work..

Once again thank you :)

Hope you are safe..

:)