Union Ministers Prakash Javadekar, Nitin Gadkari and Narendra Singh Tomar addressed the media about the decisions made at today's meeting of the Cabinet.
The announcements focused on measures for micro, small and enterprises (MSMEs), farmers and street vendors. This is the Cabinet's first meeting since the government entered its second year of office.
The meeting comes a day after the Centre announced staggered lifting of the nationwide lockdown.
Cabinet briefing LIVE updates | PM Modi:
As this Government enters its second year, the Cabinet took important decisions that will have a transformative impact on the MSME sector, our hardworking farmers and street vendors. Today’s decisions will ensure a better quality of life for them.
MSME sector is of great importance for us. Decisions taken for the MSME sector in today’s Cabinet meet will draw investments, ensure ‘Ease of Doing Business’, and easier availability of capital. Many entrepreneurs will gain from the revised definition of MSMEs.
India will prosper when our farmers prosper. Our Government has fulfilled its promise to our hardworking farmers, of fixing the MSP at a level of at least 1.5 times of the cost of production. Care has also been taken towards improving the financial situation of our farmers.
PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) is a very special scheme. For the first time, our street vendors are a part of a livelihood programme. This scheme will ensure support for street vendors. It harnesses technology and emphasises on capacity building.
Cabinet briefing LIVE updates | BJP Chief JP Nadda:
I congratulate PM Modi and his Cabinet for taking urgent actions in the 1st cabinet meeting of the 2nd year of Modi 2.0 to quickly operationalise monetary measures announced for strengthening MSMEs and helping 50 lakh street vendors as part of Atmanirbhar package.
Here are the key decisions announced by the Cabinet regarding the farm sector:
> The Cabinet approved a hike in the minimum support prices (MSP) for 14 kharif crops by 50-83 percent over cost.
> Union Minister Narendra Singh Tomar said that the revised MSP rate for Paddy is now at Rs 1,868 per quintal, Jowar at Rs 2,620/quintal and Bajra at Rs 2,150/quintal. There would be a 50 percent increase in Ragi, Moong, Groundnut, Soyabean, Til and Cotton for the year 2020-21.
> Tomar also announced that the government was extending crop loan interest benefits for farmers till August 31.
> The Cabinet also approved extension of repayment date for short-term loans for agriculture and allied activities by banks, which have become due or shall become due between March 1, 2020 and August 31, 2020.
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Street vendors can now avail loan of up to Rs 10,000 to revive business
The Union Cabinet on June 1 cleared a credit scheme for street vendors so that they can revive their businesses without any further delay.
The scheme, called PM SVANidhi, or PM Street Vendors Atmanirbhar Nidhi, is a special micro-credit facility scheme to enable more than 50 lakh urban/peri-urban andrural street vendors who were vending on or before March 24, 2020, to restart their livelihoods affected due to the lockdown.
Under the scheme, each of these streets vendors will be given a credit loan of Rs 10,000, which they can return as monthly installments within a year.
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The Cabinet briefing has ended.
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Here are some key takeaways from the Cabinet briefing:
- Revision in the definition of MSMEs approved.
- Rs 50,000 croreequity investment assistance for MSMEs
- Cabinet clears a credit scheme for street vendors.
- Hike in the minimum support price (MSP) for 14 kharif crops by 50-83 percent over cost, was approved by the Cabinet.
- Distressed assets fund - Rs 20,000 crore subordinate debt scheme for MSMEs.
Cabinet briefing LIVE Updates |
Scheme for street vendors is called PM SVANIDHI.
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Farmers will get time till August 31 to repay their loans, and those who clear their dues can avail loans at a 4 percent interest rate, said Agriculture MinisterNarendra Singh Tomar.
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The Union Cabinet on June 1 approved the setting up of a Rs 50,000 crore fund for MSMEs.
The proposed fund of funds will encourage private sector investments in the MSME sector. The actual investments may be even higher.
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Norms for loans to farmers under Kisan credit card scheme have been eased.
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Cabinet approves hike in minimum support price (MSP) for 14 crops.Farmers will get 50-83 percent more than the cost for kharif crops.
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Credit scheme for street vendors approved.5 million vendors are expected to benefitfrom the scheme, Javedkar said.
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Cabinet approves revision indefinition of MSMEsJUST IN |
Cabinet approves equity scheme forMSMEs. The Cabinet also approved infusion of Rs 20,000 crore into the sector.
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Cabinet took decisions on MSMEs, agriculture, says Javadekar.
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Cabinet briefing begins. Union minister Prakash Javadekar addresses the media.
Change in definition of MSMEs will lead to more output orientation: Experts
Finance Minister Nirmala Sitharaman on May 13 said the government had tweaked the definition of MSMEsto help businesses tide over the current crisis.
Sitharaman also said the distinction between manufacturing and service units for MSMEs had been removed.
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An announcement could be made on bringing in a new law instead of Agricultural Produce Marketing Committee (APMC) Act,News18reported.
The Cabinet might also approve a change in the definition of micro, small and medium enterprises (MSMEs), the report added.
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The Cabinet meeting comes a day after the Centre announced calibrated easing of the nationwide lockdown, which began on March 25.
Prime Minister Narendra Modi chaired themeeting.
It's been an eventful first year in office for Prime Minister Narendra Modi and his cabinet, sworn in on May 30, 2019, after a thumping win in the General Elections last year. Since then, a series of decisions by the re-elected government has had an impact on our finances.
Here is a handy recap of how money matters have changed across taxes, investments, insurance and loans.
Welcome to our live coverage of today's Cabinet briefing, which will begin at 4 pm.Union Ministers Prakash Javadekar, Nitin Gadkari andNarendra Singh Tomarwill address the media on the decisions made at today's meeting of the Cabinet. It is likely that the announcements will about micro, small and enterprises (MSMEs) and agriculture. This is the Cabinet's first meeting since they entered their second year of office.
