Latest Cabinet Announcements! Rs 20,000 Crore Fund for MSMEs, Agri Loans Date Extended, Better Prices for Farmers; More Details Here

Prime Minister Narendra Modi today (June 1, 2020) has chaired a meeting of the Union cabinet as India enters Day 1 of the Centre’s 3-phased unlocking plan. The meeting is also important as it is the first after the central government completed a year of its second term in office.

Big Announcements by Prakash Javadekar, Nitin Gadkari & Narendra Singh Tomar

Now, Union Ministers Prakash Javadekar, Nitin Gadkari and Narendra Singh Tomar are briefing the media after PM Narendra Modi chaired a Cabinet briefing amid the covid-19.

Farmers, MSMEs, Hawkers & Others to Benefit

Prakash Javadekar said at the briefing, "The decisions taken by the Cabinet today will benefit farmers, MSMEs, hawkers and vendors. The government has further changed the definition of MSMEs, from the changes announced in the Atmanirbhar package.”

According to sources, a decision could be taken to bring in a new law instead of Agricultural Produce Marketing Committee (APMC) Act. An ordinance is expected to be brought in to enforce the law. Adding to it, provisions could be made for facilitating easy inter-state travel for farmers to sell their produce.

The definition of Micro, Small & Medium Enterprises (MSME) could be changed for extending the time of investment & turnover. It is likely that a decision could be taken to amend the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act).

Big Decisions by PM Modi’s Cabinet Meeting Today

1. Cabinet has approved MSP for 14 kharif crops. Farmers will get 50-83% more than cost said the Minister

2. Cabinet has also approved Rs 50,000 crore equity infusion for MSMEs. It will strengthen their growth potential & will enable them to get listed on stock exchanges. It is to be noted that this is for the first time MSMEs are getting such huge support.

3. Functioning MSMEs which are NPA or stressed would be eligible for the stressed assets package.
MSME promoters will be provided debt by banks which will then be infused as equity by promoters.

4. Cabinet has approved Rs 20,000 crore subordinate debt for stressed MSMEs. It will benefit 2 lakh stressed MSMEs, said the Minister Prakash Javadekar

5. Earlier, the Central government had also announced Rs 20 lakh crore stimulus package to combat Covid-19.

6. MSMEs which export & have good balance sheet, rating, GST records, will support listing

7. Distressed assets fund of Rs 4,000 crore for MSMEs, said Nitin Gadkari

8. Cabinet has approved extension of repayment date for short term agriculture loans and allied activities by banks which have become due or shall become due from 1st March, 2020 and 31st August, 2020.

9. Govt hikes paddy MSP by Rs 53 per quintal to Rs 1,868 per quintal for the 2020-21 crop year, said Agriculture Minister.

10. MSMEs will be encouraged to go to stock markets, said Nitin Gadkari

11. MSME definition changed once again. Turnover limit for medium enterprises revised upward to Rs 250 crore from Rs 100 crore as announced earlier.

12. Cabinet has approved extension of repayment date for short term loans for agriculture and allied activities by banks which have become due or shall become due between 1st March, 2020 and 31st August, 2020

13. Govt hikes paddy MSP by Rs 53 per quintal to Rs 1,868 per quintal for the 2020-21 crop year, said Agriculture Minister Narendra Singh Tomar

14. MSMEs will be encouraged to go to stock markets- Gadkari

Source: Livemint