Finance Minister Nirmala Sitharaman has today announced that the government will provide Rs 3 lakh crore collateral-free automatic loans for businesses, including SMEs as she shares details of the Rs 20 lakh crore economic relief package announced by Prime Minister Narendra Modi on Tuesday to soften the devastating impact of coronavirus and the lockdown on the economy.

Sitharaman says that the package will spur growth and build a self-reliant India and push local brands to be competitive at the global level, but not make India an isolationist economy. She says that the package to build an 'aatmanirbhar bharat' was realised after long deliberations with all sections of the society.

Here's how the definition of MSMEs has been revised:

The definition of MSMEs is being changed for their advantage so that they can grow in size and get benefits. Investment limit which defined MSMEs have been revised upwards. Additional criteria being brought in is turnover size - earlier differentiation between manufacturing and service MSMEs will be categorised similarly," says Sitharaman.

This loan is for 4 year tenure and is 100 per cent guaranteed. This will last till October 21, 2020. It will benefit 45 lakh units, allowing them to resume activity and safeguarding jobs.

The stressed MSMEs need equity support. The government will facilitate provision of Rs 20,000 crore as subordinate debt, which will benefit 2 lakh MSMEs. Functioning MSMEs, which are NPA or are stressed will be eligible. The government will provide support of Rs 4,000 cr to CGTMSE.

Global tenders to be disallowed in government procurement up to Rs 200 crores. This will make self-reliant India, will also then be able to serve 'Make in India', says Finance Minister Nirmala Sitharaman.

Indian MSMEs and other companies have often faced unfair competition from foreign companies. Therefore, global tenders will be disallowed in Govt procurement tenders upto Rs 200 crore. Necessary amendments of General Financial Rules will be effected. This will be a step towards self reliant India and support Make in India. This will also help MSMEs to increase their businesses," says FM.

To ease financial stress as businesses get back to work, Government decides to continue EPF support for business & workers for 3 more months providing a liquidity relief of Rs 2,500 crores: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman has today announced that the government will provide Rs 3 lakh crore collateral-free automatic loans for businesses, including SMEs as she shares details of the Rs 20 lakh crore economic relief package announced by Prime Minister Narendra Modi on Tuesday to soften the devastating impact of coronavirus and the lockdown on the economy.

Sitharaman says that the package will spur growth and build a self-reliant India and push local brands to be competitive at the global level, but not make India an isolationist economy. She says that the package to build an 'aatmanirbhar bharat' was realised after long deliberations with all sections of the society.

Here's how the definition of MSMEs has been revised:

The definition of MSMEs is being changed for their advantage so that they can grow in size and get benefits. Investment limit which defined MSMEs have been revised upwards. Additional criteria being brought in is turnover size - earlier differentiation between manufacturing and service MSMEs will be categorised similarly," says Sitharaman.

This loan is for 4 year tenure and is 100 per cent guaranteed. This will last till October 21, 2020. It will benefit 45 lakh units, allowing them to resume activity and safeguarding jobs.

The stressed MSMEs need equity support. The government will facilitate provision of Rs 20,000 crore as subordinate debt, which will benefit 2 lakh MSMEs. Functioning MSMEs, which are NPA or are stressed will be eligible. The government will provide support of Rs 4,000 cr to CGTMSE.

Global tenders to be disallowed in government procurement up to Rs 200 crores. This will make self-reliant India, will also then be able to serve 'Make in India', says Finance Minister Nirmala Sitharaman.

Indian MSMEs and other companies have often faced unfair competition from foreign companies. Therefore, global tenders will be disallowed in Govt procurement tenders upto Rs 200 crore. Necessary amendments of General Financial Rules will be effected. This will be a step towards self reliant India and support Make in India. This will also help MSMEs to increase their businesses," says FM.

To ease financial stress as businesses get back to work, Government decides to continue EPF support for business & workers for 3 more months providing a liquidity relief of Rs 2,500 crores: FM Nirmala Sitharaman