Government pushes to revive MSMEs amid COVID-19 crisis

WION Web Team New Delhi Jun 01, 2020, 05.11 PM(IST)

India factory activity growth slows Photograph:( Reuters )

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The government said it was hiking the Minimum Support Price(MSP) of paddy by Rs 53 per quintal to Rs 1,868 per quintal for the 2020-21 crop year. 

Transport minister Nitin Gadkari said today that the cabinet has approved the road map for implementing two packages for MSMEs which includes Rs 20,000 crore package for distressed MSMEs and Rs 50,000 crore equity infusion through Fund of Funds.

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Prakash Javadekar said that the cabinet has approved Rs 20,000 crore subordinate debt for stressed MSMEs which will benefit 2 lakh stressed MSMEs.

"The turnover limit for medium enterprises has been further amended to Rs 250 crore and investment limit has been raised to Rs 50 crore," Javadekar added.

The government said it was hiking the Minimum Support Price(MSP) of paddy by Rs 53 per quintal to Rs 1,868 per quintal for the 2020-21 crop year. 

The Union cabinet also approved an increase in the MSP of 14 Kharif crops. Information & Broadcasting minister Prakash Javadekar said the increased MSP will ensure price which will be 50 per cent to 83 per cent more than the cost of production.

The government also increased MSP for cotton by Rs 260 to Rs 5,515 per quintal for 2020-21. 

"The farmers will get more time to repay their loans, till August," Union minister Narendra Tomar asserted.