Atmanirbhar Bharat package for MSME at a glance
Announced by Finance Minister Nirmala Sitharaman on May 13 2020
MSMEs have been facing stress ever since the country entered a lockdown due to COVID-19. Businesses were shut, salaries delayed and cash crunch was a reality.
Finance Minister Nirmala Sitharaman on May 13 announced measures to help support and revive the micro, small and medium enterprises (MSMEs) battered by the COVID-19 outbreak under Atmanirbhar Bharat package.
The measures taken by the Finance Ministry include,
- Rs 3 lakh crore of collateral-free automatic loans,
- Rs 20,000 crore subordinated debt for stressed MSMEs,
- Rs 50,000 equity infusion through fund of funds,
- MSME definition change; more widen
- Global tender restrictions upto Rs 200 crores as well as e-market linkages.
Now both manufacturing and servicing enterprises will be under one segment. Firms with less than Rs 1 crore investment and below Rs 5 crore turnover will be called micro entities while those with below Rs 10 crore investment and less than Rs 50 crore turnover will be small entities. Medium entities will be those with less than Rs 20 crore investment and turnover below Rs 100 crore.
Udyog Aadhar or MSME Registration can be taken by any type of business entity in India. a Sole Proprietorship , Partnership Firm, LLP, Company, Hindu Undivided Family, Association of Persons, Co-operative societiey and Self Help Group.
Eligibility Criteria based on Maximum ceiling limit of Investment made for Plant & Machinery ( in case of Manufacturing Industry) and Equipment ( for Service Industry) and MSME Clasification is based on Investment amount.
Only those entities that can be classified as a micro, small or medium enterprise under the following criteria as per the MSMED Act, 2006 is eligible to take Udyog Aadhaar number .