Government’s support towards MSME during this Pandemic

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Entrepreneur Brothers and sisters you are not alone, the entire nation is standing with you during this tough time of pandemic!

To speed up Micro, Small and medium Enterprises, a sum of Rs 3 lakh crore on low interest has been allocated. You can easily apply for a loan at your nearest bank or on the portal.

  • Government of India to provide 100% guarantee of the loan, no security needed
  • Exemption from Principle repayment for a year

Definition of MSMEs further changed to boost industry sector

  • To promote ease of doing business.
  • Opportunities for Micro, Small and Medium enterprises to grow.

No global tender process on government procurement upto Rs 200 crore

  • This will particularly benefit Micro, Small and Medium enterprises

The government has notified amendments to General Financial Rules (GFR) to ensure that goods and services valued less than Rs 200 crore are being procured from domestic firms, a move which will benefit MSMEs.

Distressed Asset funds/Subordinate debt scheme approved for MSMEs

  • A scheme of Rs 20,000 crore has been approved
  • The scheme will benefit nearly 2lakh  MSMEs

The Union Cabinet on Friday cleared a Rs 20,000-crore debt scheme to help stressed micro, small and medium enterprises (MSMEs) raise funds from financial institutions. The Distressed Assets Fund-Subordinate Debt Scheme is likely to benefit two lakh businesses, Minister of Heavy Industries and Public Enterprises Prakash Javadekar said after the Cabinet meeting.

Rs 50,000 crore Funds of Funds approved for equity MSMEs

  • Approval of Equity to put an end to challenges faced MSMEs in their development.
  • It will be a joint funds from Government and private sector    

Cabinet also approved a Fund of Funds worth Rs 50,000 crore for MSMEs, in which the central government will be an anchor investor, to encourage private sector investments in the sector. Both the decisions were part of the government’s Atma Nirbhar Bharat package, which was announced by Finance Minister Nirmala Sitharaman last month to support the economy in its fight against the damage caused by the coronavirus pandemic.

PM launches MSME minister portal:

www.champions.gov.in, a one stop shop – MSMEs can register their complaints here

CHAMPIONS – Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength

It has been felt necessary to put up and promote a unified, empowered, robust, bundled and technology driven platform for helping and promoting the Micro, Small and Medium Enterprises (MSMEs) of the country. As the name suggests it will aim at Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength. Accordingly, the name of the system is CHAMPIONS. This is basically for making the smaller units big by helping and handholding.

Three basic objectives of the CHAMPIONS:

  1. To help the MSMEs in this difficult situation in terms of finance, raw materials, labour, permissions, etc.
  2. To help the MSMEs capture new opportunities including manufacturing of medical items & accessories.
  3. To identify the sparks, i.e., the bright MSMEs who can withstand at present and become national and international champions.

War Against Corona – Nation win when you win!