Finance Minister Nirmala Sitharaman’s Big Announcement, Loans Upto Rs 3 Lakh Crore to MSME Without Guarantee

National News
Nirmala

New Delhi : Finance Minister Nirmala Sitharaman is giving information related to the economic package of 20 lakh crore through a press conference. Sitharaman started her address stating that PM Modi in his address on Tuesday laid out a comprehensive vision after a “wide and deep consultation with several sections of our society”.

In fact, Prime Minister Narendra Modi has announced a package of Rs 20 lakh crore yesterday to give a boost to the economy amid Corona crisis. PM Modi has clearly said that the poor and businessmen will be helped through this package of Rs 20 lakh crore. Finance Minister Nirmala Sitharaman is telling which sector and which business is getting what.

The package has been prepared after talking to many sections of the society. Growth has to be increased through the package. India has to be self-dependent. That’s why it is being called the Self-Dependent India Campaign, said Finance Minister Nirmala Sitharaman.

Self-dependent India means a self-confident India, which contributes to global production by making products at the local level, not limited to itself, added Finance Minister. As the nation waited for the details of the Rs 20 lakh crore economic package, Finance Minister revisited some of the previous schemes brought in by the central government. From PM Garib Kalyan Scheme to IBC and GST reforms. She said, ‘Within hours of the first lockdown, Rs 1.7 lakh crore were issued under PM Garib Kalyan Yojana. Insurance cover of Rs 50 lakh per health worker, 80 crore poor given ration, Rs 2,000 paid to farmers under existing PM Kisan scheme, beginning today for the next few days we will put out the details of PM’s announcement yesterday.’

She further said, ‘Rs 52,606 crore transferred to 41 crore Jan Dhan account holders, Rs 18,000 crore grain transfers; Ujjwala, divyang and old age also benefited. Rs 18,000 crore of refunds to I-T taxpayers, drawbacks also given, 14 lakh taxpayers benefited.’

Centre changes definition of MSMEs
Finance Minister Nirmala Sitharaman sais, ‘Definition of MSMEs has been revised, investment limit to be revised upwards, additional criteria of turnover also being introduced.

3 lakh crore unsecured loan to MSME –
6 major steps have been taken for Small Industries (MSME). Of these, MSME will be given a loan of Rs 3 lakh crore without any guarantee – said Finance Minister Nirmala Sitharaman.

A provision of Rs 20 thousand crore has been made for the MSMEs in crisis. 2 lakh MSMEs will get the benefit.

Collaboration through Funds of Funds of Rs 10,000 Crore
MSMEs who are competent, but are troubled by Corona, will be supported through a Rs 10,000 crore fund of funds for business expansion, said Finance Minister.

To provide stressed MSMEs with equity support, Government will facilitate provision of Rs. 20,000 cr as subordinate debt.

What the Govt is Planning –
– Businesses/MSMEs have badly been hit due to COVID19 and they need additional funding to meet operational liabilities to built up, buy raw material and restart business. The government will infuse Rs 50,000 crore for MSMEs, which are viable businesses but need hand holding due to Covid-19. FM Nirmala Sitharaman says a fund of fund will be created for this.

Rs 50,000 cr equity infusion for MSMEs through fund of funds –
– MSMEs face severe shortage of equity

– Fund of funds with corpus of Rs 10,000 cr will be set up

– Will provide equity funding for MSMEs, with growth potential and visibility

– FOF will be oprated through a mother fund and few daughter funds

– Fund structure will help leverage Rs 50,000 cr of funds at daughter funds level

– Will help expand MSMEs size as well as capacity

– Will encourage MSMEs to get listed on main board of Stock Exchange

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