Benefits announced for MSMEs by finance minister

by | May 15, 2020

Following up on the PM’s speech on May 12, 2020, India’s Finance Minister announced certain benefits for micro, small and medium enterprises (MSMEs):

  • Collateral free loans of up to 20% of the outstanding credit as on February 29, 2020, to be extended up to an aggregate amount of INR 3 trillion (US$39.8 billion).
  • Subordinate debt of up to INR 200 billion (US$2.65 billion) for non-performing and stressed MSMEs.
  • Creation of “Fund of Funds” of INR 500 billion for investment in viable SMEs.
  • Definition of MSMEs rejigged to include more businesses in both, the manufacturing and services sectors.

These reforms will allow some MSMEs to remain liquid during the Covid19 crisis. However, no cash pay-outs have been announced, and any lending or equity infusion will come at a cost to the MSME eventually.

More News

IBLJ A-List Rankings 2023-24

We are pleased to share that Akil Hirani, Managing Partner and Head of Transactions, Neerav Merchant, Partner and Head of Disputes, and Rukshad Davar, Partner and Head of M&A Practice, have been recognised as India's A-List lawyers for 2023-24 by India Business...

read more

Chambers and Partners 2024 Rankings

We are pleased to share that our firm has been recommended for various practice areas by Chambers and Partners in their Asia-Pacific Guide 2024. Firm Rankings Corporate/M&A: The Elite Dispute Resolution Employment Life Sciences Real Estate: Mumbai-based...

read more

IFLR1000 rankings – 2023

We are pleased to share our IFLR1000 rankings for 2023. Firm Rankings Tier 3 M&A Private Equity Project Finance Project Development: Telecommunications Networks Tier 4 Banking Capital Markets: Debt Project Development: Infrastructure Partner Rankings Akil Hirani,...

read more

Asialaw rankings – 2023

We are pleased to share that our firm has been recognised by asialaw in their 2023 rankings across multiple industry sectors and practice areas. Practice Areas: Highly Recommended: Labour and Employment Recommended: Banking and Finance, Construction, Corporate and...

read more

Asian Legal Business 2023 Rankings

Majmudar & Partners has been ranked as a Tier 1 firm in India in the Asian Legal Business M&A Rankings for Asia. Akil Hirani, Managing Partner and Head of Transactions, has been named among India's best TMT lawyers, while Rukshad Davar, Partner and Head of the...

read more