Cabinet decisions on farmers, MSMEs

at 5:41 pm
Union Minister Prakash Javadekar (File)

New Delhi (NVI): The Union Cabinet today took key decisions on MSMEs (Micro, Small and Medium Enterprises), farmers and poor under the Centre’s ‘Atma Nirbhar Bharat package’ that was announced recently.

In the high-level meet, chaired by Prime Minister Narendra Modi, the cabinet cleared a Rs 20,000-crore debt scheme, which would help nearly 2 lakh MSMEs raise funds amid lockdown.

The Government also approved a Fund of Funds worth Rs 50,000 crore for MSMEs to encourage private sector investment in the sector.

Apart from that, the Cabinet has approved the extension of repayment date for short term loans for agriculture and allied activities by banks which have become due or shall become due between 1st March and 31st August, 2020.

In addition to this, the Cabinet Committee on Economic Affairs (CCEA) chaired by PM Modi has approved the increase in the Minimum Support Prices (MSPs) for all mandated Kharif crops for marketing season 2020-21.

The Minimum Support Price of paddy has been raised by Rs 53 per quintal taking the MSP to Rs 1,868 per quintal for 2020-21. The MSP of cotton has also been hiked now, up by Rs 260 to touch Rs 5,515 per quintal.

While addressing media after the meeting, Union ministers Prakash Javadekar, Nitin Gadkari and Narendra Tomar said that the measures will improve ease of doing business, attract investments and create jobs.