MSME Ministry allocated Rs 7,572 crore
The union Budget 2020-21 has earmarked an all-time high allocation of Rs 7,572.20 crore for the Ministry of Micro, Small and Medium Enterprises, Also announcing a string of initiatives for the sector including raising the turnover threshold for audit of their accounts to Rs 5 crore and a scheme to provide subordinate debt to MSME entrepreneurs.The flagship employment generation scheme of the ministry, Prime Minister Employment Generation Programme, has got an all-time high allocation of Rs 2,500 crore for generating self-employment opportunities through establishment of micro-enterprises in non-farm sector by helping traditional artisans and rural/urban unemployed youth.
A scheme of Rs 1,000 crore was also announced to extend hand holding support to mid-sized companies in selected sectors such as pharmaceuticals, auto components and others for technology upgradations, R&D, business strategy, among others, to make them export competitive.The Khadi Vikas Yojana and Gramodyog Vikas Yojana has been allocated Rs 472 crore to develop a sustainable model of Khadi based business enterprises in the villages. The allocation under MSE-Cluster Development Programme has witnessed an increase of 71 percent to Rs 391 crore from Rs 228 crore in 2019-20 for enhancing productivity, competitiveness and capacity building of Micro and Small Enterprises (MSEs)..Allocation for 'Scheme of Fund for Regeneration of Traditional Industries' (SFURTI) has gone up to Rs 465 crore from Rs 125 crore in the previous year to help traditional industries become more productive, profitable and capable of generating sustainable employment for artisans.
The Government has also asked the Reserve Bank to extend the debt restructuring window for MSMEs by a year to March 31, 2021, Honorable FM Mrs Sitharaman said.