To strength up the MSME (Mirco, small and medium enterprise ), the cabinet ministers on economic affairs decided to infuse Rs 20,000 crore and give aid for Kharif crops and MSPs. The turnover for medium organisations is upward to Rs 250 crore from 100 crores negotiated before. Hiking has done so as to more and more companies invest and increase turnover.
Union minister also approved this for 2020-2021.ditinctions in the various sectors have been removed as said by Nirmala Sitharaman.
The government has increased the MSP of Kharif crops to make sure remunerative prices to growers for his or her produce.
The highest increase in MSP is proposed for nigerseed (Rs 755 per quintal) followed by sesamum (Rs 370 per quintal), urad (Rs 300 per quintal) and cotton (long staple) (Rs 275 per quintal). The differential remuneration is aimed toward encouraging crop diversification.
“Low threshold in MSME definition has created a fear among MSMEs of graduating out of the advantages and hence killing the urge to grow,” the govt had said during a statement.
There are various advantages that firms, especially startups can derive by this.
On this, Union Minister Prakash Javadekar said, “Cabinet today has approved Rs 20,000 crore subordinated debt for stressed MSMEs, this may benefit 2 lakh stressed MSMEs.”
MSME promoters are provided with debts which are as equal as equities
The first move was taken by cabinet ministers which were led by the ND government. But the latest move of fresh resolution and initiative of Rs 20 crores to boost the economy and work on MSME sectors. This was the first meeting of the Cabinet after the Narendra Modi-led NDA government completed its first year of the second term at the centre.