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Equity infusion for MSMEs:
News:
- The Cabinet Committee on Economic Affairs (CCEA) approved ₹50,000 crore equity infusion for micro, small, and medium enterprises (MSMEs).
- Aim: To help MSMEs to enhance capacity, while also encouraging them to get listed.
More in the News:
- Subordinate debt of ₹20,000 crore is approved to provide equity support to stressed MSMEs. This is likely to benefit two lakh MSMEs.
- The CCEA, also approved the new definition of MSMEs increasing the investment limit and turnover.
- For Medium Enterprises: Investment limit to ₹50 crore and turnover to ₹250 crore.
- For micro enterprises: Investment limit will be ₹1 crore and turnover ₹5 crore.
- For small enterprises: Investment limit will be ₹10 crore and the turnover ₹50 crore.
Previous MSME Classification:
- A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs.25 lakh.
- A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore
- A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.