PM Modi appoints committee headed by Rajnath Singh for MSME loan scheme implementation: Nitin Gadkari – The Financial Express

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Credit and Finance for MSMEs: MSME Minister Nitin Gadkari has asked small businesses to email him directly in case of problems faced by them in securing credit under the scheme.

Credit and Finance for MSMEs: Prime Minister Narendra Modi has appointed a committee headed by Rajnath Singh to resolve any problem in the implementation of the Rs 3 lakh crore collateral-free loan scheme for MSMEs, said MSME Minister Nitin Gadkari on Sunday. In an online interaction with the members of the Pune-based Mahratta Chambers of Commerce, Industries and Agriculture (MCCIA), Gadkari asked small businesses to email him directly in case of problems faced by them in securing credit under the scheme.

Finance Minister Nirmala Sitharaman earlier this month had announced the collateral-free loans scheme for MSMEs as part of the overall Rs 20 lakh crore Covid-19 relief package to uplift the economy. According to Sitharaman, 45 lakh MSME units will be able to resume their businesses and secure jobs through this support. The eligible units should have up to Rs 25 crore outstanding credit and Rs 100 crore turnover to apply for the loan scheme.

Gadkari also said that for MSMEs to foray into the solar park sector, being a good idea would be viable if state governments reduce transmission charges. He urged small businesses to reach out to Maharashtra’s Chief Minister Uddhav Thackeray for a cut in the transmission charges.

The minister had recently suggested revision in the definition of medium enterprises to Rs 50 crore and Rs 200 crore in terms of investment and turnover respectively. “I have thought about increasing the (criteria for) MSME definition but I need approvals of Finance ministry and PMO,” he said. Sitharaman had announced in the economic package that the medium enterprises’ definition has been revised from earlier  Rs 5 and Rs 10 crore investment in plant and machinery by manufacturing and services units to Rs 20 crore investment limit and Rs 100 crore as turnover.