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PM Modi appoints committee for MSME loan implementation: Nitin Gadkari

Updated: Jun 01, 2020 06:38:24am
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PM Modi appoints committee for MSME loan implementation: Nitin Gadkari

New Delhi, Jun 1 (KNN) Prime Minister Narendra Modi has appointed a committee headed by Rajnath Singh to resolve any problem in the implementation of the Rs 3 lakh crore collateral-free loan scheme for MSMEs, said MSME Minister Nitin Gadkari.

He said this during an online interaction with the members of the Pune-based Mahratta Chambers of Commerce, Industries and Agriculture (MCCIA) and asked small businesses to email him directly in case of problems faced by them in securing credit under the scheme.

''For MSMEs to foray into the solar park sector, being a good idea would be viable if state governments reduce transmission charges,'' said Gadkari.

 He also urged small businesses to reach out to Maharashtra’s Chief Minister Uddhav Thackeray for a cut in the transmission charges.

Last month, Finance Minister Nirmala Sitharaman had announced Rs 3 lakh crore collateral free loan for MSMEs as part of the overall Rs 20 lakh crore Covid-19 relief package to uplift the economy.

''The collateral free loans are for those with upto Rs 25 crore outstanding loan or Rs 100 crore turnover. The tenure of the loan will be 4-year and moratorium of 12 months,'' FM had said at a press conference.

The Finance Minister also announced 100% credit guarantee cover to banks and Non-Banking Financial Corporation (NBFCs) on principal and interest which will benefit 45 lakh units.

The eligible units should have up to Rs 25 crore outstanding credit and Rs 100 crore turnover to apply for the loan scheme.

However, the MSME Minister had recently suggested to revise the criteria for medium units by enhancing the investment and turnover limits to up to Rs 50 crore and Rs 200 crore.

"We have taken a decision to raise the up to Rs 20 crore investment (criteria) to up to 50 crore and turnover (limit) to up to Rs 200 crore. So, we will issue an order for that," Gadkari said.

As per the revised definition, any firm with investment up to Rs 1 crore and turnover under Rs 5 crore will be classified as "micro". A company with investment up to Rs 10 crore and turnover up to Rs 50 crore will be classified as "small" and a firm with investment up to Rs 20 crore and turnover under Rs 100 crore will be classified as "medium".

''Criteria should be based on investment "or" turnover instead of investment and turnover both as announced. The government will rectify the same,'' he added.

Prime Minister Narendra Modi has appointed a committee headed by Rajnath Singh to resolve any problem in the implementation of the Rs 3 lakh crore collateral-free loan scheme for MSMEs, said MSME Minister Nitin Gadkari.

He said this during an online interaction with the members of the Pune-based Mahratta Chambers of Commerce, Industries and Agriculture (MCCIA) and asked small businesses to email him directly in case of problems faced by them in securing credit under the scheme.

''For MSMEs to foray into the solar park sector, being a good idea would be viable if state governments reduce transmission charges,'' said Gadkari.

He also urged small businesses to reach out to Maharashtra’s Chief Minister Uddhav Thackeray for a cut in the transmission charges.

Last month, Finance Minister Nirmala Sitharaman had announced Rs 3 lakh crore collateral free loan for MSMEs as part of the overall Rs 20 lakh crore Covid-19 relief package to uplift the economy.

''The collateral free loans are for those with upto Rs 25 crore outstanding loan or Rs 100 crore turnover. The tenure of the loan will be 4-year and moratorium of 12 months,'' FM had said at a press conference.

The Finance Minister also announced 100% credit guarantee cover to banks and Non-Banking Financial Corporation (NBFCs) on principal and interest which will benefit 45 lakh units.

The eligible units should have up to Rs 25 crore outstanding credit and Rs 100 crore turnover to apply for the loan scheme.

However, the MSME Minister had recently suggested to revise the criteria for medium units by enhancing the investment and turnover limits to up to Rs 50 crore and Rs 200 crore.

"We have taken a decision to raise the up to Rs 20 crore investment (criteria) to up to 50 crore and turnover (limit) to up to Rs 200 crore. So, we will issue an order for that," Gadkari said.

As per the revised definition, any firm with investment up to Rs 1 crore and turnover under Rs 5 crore will be classified as "micro". A company with investment up to Rs 10 crore and turnover up to Rs 50 crore will be classified as "small" and a firm with investment up to Rs 20 crore and turnover under Rs 100 crore will be classified as "medium".

''Criteria should be based on investment "or" turnover instead of investment and turnover both as announced. The government will rectify the same,'' he added.

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