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Business

Much needed booster dose for MSMEs- CA Julfesh Shah

by TLN Team May 13, 2020
written by TLN Team May 13, 2020
Much needed booster dose for MSMEs- CA Julfesh Shah
The announcements by Hon FM in the stimulus package especially for MSME sector will definitely prove to be a sigh of relief to a sone extent for the entrepreneurs.
Collateral free automatic loans, Subordinate debt for stressed assets, Funds of funds to the extent of 50000 crores for MSMEs with viable business to grow & expand, Change in definition of MSME with no distinction between manufacturing & service sector now will prove to have a very positive impact on the morale of the MSME sector.
For giving them level playing field global tender process upto 200 crores will be disallowed. Also, E-market linkage of all MSME in substitution of trade fairs is a welcome move in view of the pandemic.
The most important is that the directions to be given for payment of any receivables from Govt of India within 45 days which will ease liquidity pressure.
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