The decision was announced by Union Ministers Prakash Javadekar, Nitin Gadkari and Narendra Tomar during the media briefing in Delhi on Union Cabinet's decisions.
In order to improve ease of doing business, the Cabinet on Monday approved revision in definition of MSMEs. The decision was announced by Union Ministers Prakash Javadekar, Nitin Gadkari and Narendra Tomar during the media briefing in Delhi on Union Cabinet's decisions.
"Two lakh MSMEs will benefit from the change," said Javadekar while briefing reporters.
The cabinet also approved Rs 50,000 crore equity infusion for MSMEs to strengthen their growth potential.. Additionally, the government approved Rs 20,000 crore subordinate debt for stressed MSMEs.
Javadekar said the decision on equity infusion will enable micro, small and medium enterprises (MSMEs) to get listed on stock exchanges.
A fund of funds with corus of Rs 10,000 will be set up. The fund of funds will be operated through mother fund and few daughter funds. The fund structure will help leverage Rs 50,000 crore of funds at daughter funds level.
In May, Sitharaman had announced an upward revision of investment limit, and introduced a turnover criterion for MSMEs.
In another major decision, the government on Monday approved an increase in minimum support prices (MSP) of 14 kharif crops. The increased MSP will ensure a price which will be 50 percent to 83 percent more than the cost of production.
First Published: IST