As India enters the first day of ‘Unlock 1’, a meeting of the Union Cabinet was chaired by Prime Minister Narendra Modi on Monday, with a ‘historic’ decision expected from the same.
Speaking at a press conference after meeting, Union Minister Narendra Tomar said that the Minimum Support Price (MSP) for 14 kharif crops has been increased by 50-83 per cent to provide reliefs to farmers.
The MSP for paddy was hiked by Rs 53 to Rs 1,868 per quintal for the 2020-21 crop year. The MSP for cotton was hiked by Rs 260 to Rs 5,515 per quintal.
In addition, farmers will be given more time to repay their loans, with the deadline extended to August.
In addition, a Rs 50,000 crore package was announced for street vendors, allowing them to take out loans of up to Rs 10,0000. The move is expected to benefit at least 50 lakh vendors.
Union Minister Prakash Javadekar, who holds the portfolios for Environment, Forest and Climate Change, Information and Broadcasting, and Heavy Industries and Public Enterprises, also announced that the Cabinet had approved Rs 20,000 crore of subordinate debt for stressed MSME. He said the move would benefit up to two lakh stressed MSMEs.
Union Minister Nitin Gadgari said the Cabinet approved the modalities and road map to implement the MSME relief package, which includes a Rs 20,000 crore package for distressed MSMEs and a Rs 50,000 equity infusion through the Fund of Funds.
The updated thresholds for the definition of an MSME have also been approved.
