Rs 3 trn to act as booster, to help 450,000 MSMEs, says Ravi Shankar Prasad

More important in the contract for the government of India supply upto 200 crore, MSME will also be allowed to compete, said Prasad.

Union Minister Ravi Shankar Prasad on Wednesday said that the government's announcement of Rs 3 trillion will act as a strong booster for the micro, small and medium sector industries and it will directly impact nearly 45 lakh MSMEs.

"Finance Minister Nirmala Sitharaman has outlined the first series of follow-up action as the Prime Minister indicated. What is important is 3 trillion of strong booster for MSME industries. This is going to directly impact nearly 45 lakh MSMEs saving their jobs, their business opportunity, making them more competitive," said Prasad, news agency ANI reported.

"More important in the contract for the government of India supply upto 200 crore, MSME will also be allowed to compete. Also good liquidity for non-banking financial sector, partial credit scheme, and the govt standing as a guarantee for MSME loans by the bank plus other tax incentives to the construction, other sectors. The first series is a wholesome package to the fulfillment of PM's promise and surely lot of others are to follow," the Union Minister said.

"Corona is a pandemic but we are also to sure that India rises. And that's what the initiative is about. I am sure there is great optimism hope and also a commitment to go forward," he said.

The Union Minister praised Prime Minister Narendra Modi for the announcement of Rs 20 trillion special economic package. "The Prime Minister outlines a 20 trillion package for country, designed to make India a competitive economy with stress on self-reliance, 'AtmaNirbhata' Make in India."

Finance Minister Nirmala Sitharaman on Wednesday announced a series of liquidity measures for millions of small businesses reeling under the impact of Covid-19 lockdown, including collateral-free automatic loans worth Rs 3 trillion.

"This will enable 45 lakh micro, small and medium enterprise (MSME) units to resume business activity and also safeguard jobs," said Sitharaman.