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Uttarakhand CM lauds MSME sector, says it plays an important role in development of state

Updated: Jul 02, 2020 10:33:15am
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Uttarakhand CM lauds MSME sector, says it plays an important role in development of state

Dehradun, Jul 2 (KNN) Lauding Micro, Small and Medium Enterprises (MSMEs) which nearly contributes 30 per cent of India's Gross Domestic Product (GDP), Uttarakhand Chief Minister Trivendra Singh Rawat on Thursday said that the MSME sector plays an important role in the development of the State.

Singh also said that MSMEs in Uttarakhand will be benefitted as the Centre has redefined MSMEs.

"The MSME sector has an important role in the development of Uttarakhand," said CM Rawat.

"Employment generation is a major source, with the Central government defining MSMEs in a new way, the MSMEs of the State will benefit which will have a positive impact on the development of the state," he added.

After 14 years since the MSME Development Act came into existence in 2006, a revision in MSME definition was announced in the Atmnirbhar Bharat package on May 13th, 2020.

As per the announcement, the definition of Micro manufacturing and services units was increased to Rs 1 crore of investment and Rs 5 crore of turnover. The limit of the small unit was increased to Rs 10 crore of investment and Rs 50 crore of turnover. Similarly, the limit of medium units was increased to Rs 20 crore of investment and Rs 100 crore of turnover.

Later, on June 1st, the government of India for medium enterprises, increased the limit for investment to Rs 50 crore and for turnover, the limit was increased to Rs 250 crore.

In the same month, in order to pull out MSMEs from COVID-19 crisis, the Union Cabinet, chaired by Prime Minister Narendra Modi, had approved to enable additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested Micro Units Development and Refinance Agency Bank (MUDRA) borrowers.

Under the scheme, 100 percent guarantee coverage will be provided by National Credit Guarantee Trustee Company (NCGTC) for additional funding of up to Rs 3 lakh crore to eligible MSMEs and interested Micro Units Development and Refinance Agency (MUDRA) borrowers, in the form of a guaranteed emergency credit line (GECL) facility.

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