• Team VRAC

MSME Benefits under Atma Nirbhar Bharat

New Factors of Production of Atma Nirbhar Bharat (Self Reliant India) will be: 1. Land 2. Labour 3. Liquidity 4. Law Local Brand to Global Brand - Be vocal for our Local so that they become Global. Schemes announced on 13th May, 2020 by Hon. Finance Minister 1. For Ordinary MSME: Collateral free automatic loans will be disbursed from Government. No guarantee required. The tenure of the loan will be 4 years. First 12 months, no Principal repayment i.e. Moratorium period of 1 year for Principal repayment. The benefit will be available till 31st October, 2020. 45 lakh MSME will benefit from this scheme. 2. For Stressed MSME: Sub-Ordinate debt for stressed MSME. Government of India will infuse Rs. 20,000/- Crore. 2 lakh MSME will benefit under this scheme. 3. For Good performing MSME: Fund of Fund created for infusing equity into MSME. FOF of corpus Rs. 10,000 crores will be set up. Will help them to expand their capacity. Will help to list on major stock exchanges. 4. Change in definition of MSME: The business which grew still remained under MSME to avail many benefits. Change is for the positivity in MSMe which is in investment limit and turnover limit. There will be no differentiation between manufacturing or service based MSME. Revised definition: Micro Enterprise: Investment upto Rs. 1 crore and Turnover upto Rs. 5 crore. Small Enterprise: Investment upto Rs. 10 crore and Turnover upto Rs 50 crore. Medium Enterprise: Investment upto Rs. 20 crore and Turnover upto Rs 100 crore. 5. Government procurement: Tenders upto Rs. 200 crore will be no longer yo global tender in order to promote INDIAN MSME. Majority of MSME were unable to supply because of competition with Global players. This scheme will be able to serve Make in India project. The scheme removed unfair competition since Local were not able to complete with the Global. 6. Post Covid trade fairs will be difficult. E market linkage will be created.