Aatma Nirbhar Yojana Part-1 MSME Perspective

We all are aware that our honorable Prime Minister has called for ‘AATMA NIRBHAR BHARAT’ which is a big leap of faith taken by him to announce 20 Lac crore Economic Package; which is third largest in the world; which has something for every sector of economy.

Our Finance Minister has given details of “AATMA NIRBHAR YOJANA- PART-1” on 13.05.2020. We are focusing over here on MSME perspective, for that we have to understand the meaning of MSME & what are the benefits given to them.

REVISED DEFINITION OF MSME:

Based upon composite criteria of investment and turnover, where in following classification are done-

Note: Earlier criteria were separate for manufacturing and service enterprise nut now there is no distinction

FINANCIAL AID

1. Collateral-free automatic loan

Eligible Criteria:

Only Standard Borrowers with outstanding credit limit up to 25 Crores AND Turnover up to 100 Crores as on 29.02.2020

Tenure & Amount of Loan:

• Term loan of 4 years will be given with moratorium of 12 months with respect to principal repayment
• Amount will be 20% of outstanding credit as on 29.02.2020 (for e.g. Out of 2 crores of sanctioned credit limit only 1 crore is outstanding as on 29.02.20 than 20% of 1 crore i.e. 20lac will be amount of additional loan

Other Features:

• This Direct & Automatic Loan is available till 31.10.20
• No fresh collateral to be produced
• 100% Credit guarantee cover on Additional loan available with no additional guarantee fees
• Rate of Interest is restricted to existing rate of interest on existing loan

2. Subordinate Debt for stressed MSME:

Eligibility Criteria:

• Only for MSME classified as NPA or stressed AND
• Operational

Amount of Loan:

Amount of loan will be lower of two

⇒ 15% of total stake of the promoter OR

⇒ 75 Lacs

Special Features:

• Provision made for subordinate debt for MSMEs which are NPA or are stressed.
• The Government will pay to CGTMSE for partial credit guarantee. Hence, this loans will be charged with guarantee fees

3. Equity Infusion through Fund of Funds

Eligibility Criteria:

Only Corporate MSME having viable growth potential can avail this benefit

Types of Loan:

• Fund of Funds will provide funds through their Daughter fund in form of equity participation
• Terms and conditions are subjective from case to case basis

Special Features:

This fund will encourage MSME listing on main board of stock exchange & help boost the economy

OTHER MEASURES

E Market Linkage:

• Being Exhibitions and other trade fairs are closed due to COVID-19; MSMEs will be given online presence through E-Market soon

Government Payment to MSME:

• Every receivable from Government and CPSE to MSME will be paid within 45 days to increase liquidity

No Global Tenders up to 200 Crores:

• To encourage Make in India Government has stopped calling global tenders for procurement of goods & services up to 200 Crores.

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