Centre Approves Rs 20,000 Cr Subordinate Debt For MSMEs Stressed Due To COVID Pandemic

Union Cabinet Meeting chaired by PM Narendra Modi on Monday, discussed on various measures taken for the development of farmers, poors, street vendors and MSMEs.

Union minister Prakash Javadekar

New Delhi: In a major decision, the first Union Cabinet meeting chaired by Prime Minister Narendra Modi on Monday gave a green signal to the recommendation of Rs 20,000 crore subordinate debt for stressed MSMEs. The government conducted rounds of discussions over the revised and widened definitions of MSMEs (Micro, Small and Medium Enterprises) to boost the sector. In the first ever cabinet meeting after the NDA government completed the first year of its second term, Home Minister Amit Shah, Finance Minister Nirmala Sitharaman, Prakash Javadekar, Nitin Gadkari beside other ministers, took several decisions for the welfare of Indian citizens who were worst-hit during the Coronavirus induced lockdown enforced on March 25. Addressing the media, Prakash Javadekar, Minister of Environment, Forest and Climate Change, announced that the centre today discussed on various measures taken for the development of farmers, poors, street vendors and MSMEs. "Rs 20,000 crores will be infused into the sector. The Cabinet today has approved Rs 20,000 crore subordinate debt for stressed MSMEs, this will benefit 2 lakh stressed MSMEs," Javadekar said. Elaborating on the measures, Cabinet Minister Nitin Gadkari said that MSMEs hold 29% contribution in the country's GDP and 48% share in the country's exports.  To boost the sector which was adversely hit amid the COVID-Pandemic, the Centre today took historic decision and approved modalities and road map for implementing two packages for MSMEs. "Rs 20,000 crore package for distressed MSMEs and Rs 50,000 crore equity infusion through Fund of Funds," Nitin Gadkari said. The minister further said that the government agreed on a distressed asset fund Rs 4,000 crore to help weak MSMEs that are struggling through NPA norms. In order to get the MSMEs get listed in the stock market, Nitin Gadkar announced Rs 10,000 crore fund, which, he claimed, will reach Rs 50,000 cr along with other investments.