Rs 3 lakh crore strong booster, directly going to impact nearly 45 lakh MSMEs: Ravi Shankar Prasad

New Delhi [India], May 14 (ANI): Union Minister Ravi Shankar Prasad on Wednesday said that the government's announcement of Rs 3 lakh crore will act as a strong booster for the micro, small and medium sector industries and it will directly impact nearly 45 lakh MSMEs.
Speaking to ANI, Prasad said, "Finance Minister Nirmala Sitharaman has outlined the first series of follow-up action as the Prime Minister indicated. What is important is 3 lakh crore of strong booster for MSME industries. This is going to directly impact nearly 45 lakh MSMEs saving their jobs, their business opportunity, making them more competitive. Even the definition of MSME has changed."
"More important in the contract for the government of India supply upto 200 crores, MSME will also be allowed to compete. Also good liquidity for non-banking financial sector, partial credit scheme, and the govt standing as a guarantee for MSME loans by the bank plus other tax incentives to the construction, other sectors. The first series is a wholesome package to the fulfillment of PM's promise and surely lot of others are to follow," the Union Minister said.
"Corona is a pandemic but we are also to sure that India rises. And that's what the initiative is about. I am sure there is great optimism hope and also a commitment to go forward," he said.
The Union Minister praised Prime Minister Narendra Modi for the announcement of Rs 20 lakh crore special economic package. "The Prime Minister outlines a 20 lakh crore package for country, designed to make India a competitive economy with stress on self-reliance, 'AtmaNirbhata' Make in India."
"We all need to understand that it is not any kind of isolationist policy. What the PM emphasied was that if the Indian economy becomes resurgent it is bound to become competitive, then it will strengthen the world economy. A country of the size of India with its robust democratic institutions and human resources entrepreneurship will be a great contribution to the world. It is a very bold initiative by the Prime Minister.
Finance Minister Nirmala Sitharaman on Wednesday announced a series of liquidity measures for millions of small businesses reeling under the impact of COVID-19 lockdown, including collateral-free automatic loans worth Rs 3 lakh crore.
Borrowers with up to Rs 25 crore outstanding and Rs 100 crore turnover will be eligible. These loans will have a four-year tenure and have a moratorium for 12 months on principal payment.
There will be a 100 per cent credit guarantee cover to banks and non-banking finance companies on principal and interest. The scheme can be availed till October 31.
"This will enable 45 lakh micro, small and medium enterprise (MSME) units to resume business activity and also safeguard jobs," said Sitharaman. (ANI)