Glimpse and Discussion on Key MSME Announcements | Provenience
The Finance ministry on 13th May 2020 made few announcements to MSME sectors which according to government will curb the negative impact due to Novel Corona virus on small industries.
Here are few announcements lets discuss them one by one. We will also discuss our opinion and effect on MSMEs –
First of all Finmin changed the definition of MSME and revised to allow MSMEs to aim for expansion and not lose benefits. Now manufacturing and service industries are combined and composite criteria has been announced on the basis of investment amount and turnover. Now the Maximum limit has been identified as 20Cr as Investment and 100 Cr as Turnover.
In our opinion this is a welcome step and will extend benefits to many growing industries.
MSME sector has been most effected due to Covid-19, Startup and MSME always feel cash crunch since due to very low sale or no sale MSME chain of working capital has been broke off Government has announced Collateral free loan of Rs 3 lakh crores for MSMEs. This will benefit 45 lakh units so that they can resume work and save jobs.
To know more in detail about MSME registration read our blog.
