May 13: Today the Finance Minister Smt Nirmala Sitharaman made a big bonanza announcement that benefits MSMEs of India to look forwards towards the self-reliance (Atmanirbhar) India. These announcements will now give a boost to MSMEs to revive, reboot, reinvent and restructure their businesses. The main announcements of today are
- Rs 3 lakh crores Collateral Free Automatic Loans for Businesses including MSMEs to meet operational expenses, buy materials, machinery and restart their business.
- Rs 20,000 crore Subordinate Debt for Stressed MSMEs and Non Performing Assets (NPA) businesses via Credit Guarantee Trust for Micro and Small Establishments (CGTMSE) scheme
- Rs 50,000 cr equity infusion through MSME Fund of Funds for MSMEs which are Viable business having growth potential and are need of funds for growth.
- The New definition of MSME has been changed to include the Turnover of the Business and not just the Investment. This is inline to the International standards where MSMEs are structured based on the Turnover.
- Global tender to be disallowed up to Rs 200 crores which are going to be an opportunity for MSMEs to bid for government procurement tenders and to promote Make In India
- e-market linkage for MSMEs to be promoted to act as a replacement for trade fairs and exhibitions.
- Settlement of Dues to MSMEs from the Government or CPSEs to be done within 45 days
- Rs 2500 crores EPF support for Businesses and Workers coming under the PM Garib Kalyan Package to continue for 3 more months i.e. until August 2020 for Businesses having less than 100 employees with 90% of the workforce earning less than Rs 15,000
- EPF contribution reduced from 12% to 10% for Business & Workers for 3 months to provide liquidity of Rs. 6750 crores to both employers and employees
- Reduction of TDS / TCS by 25% to generate liquidity of Rs 50,000 cr liquidity
