New Delhi, May 20 (KNN) In his address to the nation, Prime Minister Narendra Modi had called for Atmanirbhar Bharat Abhiyan or Self-Reliant India Movement.

The five pillars of Atmanirbhar Bharat are Economy, Infrastructure, System, Vibrant Demography and Demand

The role of micro, small and medium enterprises (MSMEs) and the challenges the sector has been exposed to due to Coronavirus led lockdown has been talked about by all experts and leaders.

The Central Government had announced the Special economic and comprehensive package of Rs 20 lakh crores -equivalent to 10% of India's GDP.

There was also a Package to cater to various sections including cottage industry, MSMEs, labourers, middle class, and industries, among others.

Lets have a look at the features of two packages announced by the government amongst many:

1.    Stressed MSMEs need equity support

~~ GoI will facilitate provision of Rs. 20,000 cr as subordinate debt

~~ Two lakh MSMEs are likely to benefit

~~ Functioning MSMEs which are NPA or are stressed will be eligible

~~ Govt. will provide a support of Rs.4,000Cr. To CGTMSE

~~ CGTMSE will provide partial Credit Guarantee support to Banks•

~~ Promoters of the MSME will be given debt by banks, which will then be infused by promoter as equity in the Unit.

2.    Rs 50,000 cr. Equity infusion for MSMEs through Fund of Funds

~~ MSMEs face severe shortage of Equity.

~~ Fund of Funds with Corpus of Rs10,000 crores will be set up.

~~ Will provide equity funding for MSMEs with growth potential and viability

~~ FoF will be operated through a Mother Fund and few daughter funds

~~ Fund structure will help leverage Rs50,000 cr of funds at daughter funds level

~~ Will help to expand MSME size as well as capacity.

~~ Will encourage MSMEs to get listed on main board of Stock Exchanges.

There were several other announcements made for the sector like new criteria to define MSMEs, disallowing Global Tenders upto Rs 200 crore etc. (KNN Bureau)