New Delhi: The government on Monday announced a major boost for the Micro, Small and Medium Enterprises (MSMEs), infusing Rs 20,000 crore into the sector. Additionally, in a measure aimed at providing relief to farmers, it also announced an increase in Minimum Support Price (MSP) of 14 kharif crops.Also Read - Huge Relief For Farmers as Centre Hikes MSP For 14 Kharif Crops by 50- 83%

Announcing the move at a press briefing today, Union I&B Minister Prakash Javadekar said, “Cabinet today has approved Rs 20,000 crore subordinate debt for stressed MSMEs, this will benefit two lakh stressed MSMEs.” Also Read - Historic Decisions Expected in PM Modi's Cabinet Meeting: Report

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“The turnover limit for medium enterprises has been further amended to Rs 250 crore and investment limit has been raised to Rs 50 crore,” he added.

For farmers, Union Agriculture Minister Narendra Singh Tomar announced an increase in MSP by 50-83% for 14 kharif crops, adding that the farmers will now also get more time to repay their loans, till August now.

“MSP rate for Paddy now at Rs 1,868 per quintal, Jowar-Rs 2,620/quintal, Bajra-Rs 2,150/quintal, and 50% increase in Ragi, Moong, Groundnut, Soyabean, Til and Cotton, for the year 2020-21,” the minister further said.

Also present at the briefing was Union Road Transport Minister Nitin Gadkari, who said that the Union Cabinet has approved modalities and road map for implementing two packages for MSMEs. While one is the Rs 20,000 crore package for distressed MSMEs, the other, he said, is a Rs 50,000 crore equity infusion through Fund of Funds.

All these decisions, notably, were taken at a cabinet meeting chaired by Prime Minister Narendra Modi earlier today. This was the first cabinet meet of the Modi government after completion of the first year of its second term on Saturday.