Union Cabinet approves Rs 20,000 crore subordinate debt for stressed MSMEs

New Delhi: The Union Cabinet on Monday approved Rs 20,000 crore subordinate debt for stressed Micro, Small and Medium Enterprises, which will benefit two lakh such units, said Union Minister Prakash Javadekar.

Addressing a press conference here along with Union Ministers Nitin Gadkari and Narendra Singh Tomar, Javadekar said: “Various key steps have been taken by the government to boost MSMEs. A decision has been taken to infuse Rs 20,000 crore into this sector.”

Subordinate debt is a debt owed to an unsecured creditor that in the event of liquidation can only be paid after the claims of secured creditors have been met.

Cabinet today has approved Rs 20,000 crore subordinate debt for stressed MSMEs, this will benefit 2 lakh stressed MSMEs: Union Minister Prakash Javadekar

— ANI (@ANI) June 1, 2020

“MSMEs play a crucial role in building an Aatma Nirbhar Bharat. Accordingly, MSMEs have been made an important part of Aatma Nirbhar Bharat Abhiyan package,” added Javadekar.

Cabinet Briefing by Union Ministers Prakash Javadekar, Nitin Gadkari & Narendra Singh Tomar https://t.co/j7g5GMjT0h

— Newsroom Post (@NewsroomPostCom) June 1, 2020

Prime Minister Narendra Modi had recently announced a Rs 20 lakh crore economic stimulus package for the country fighting the coronavirus, stating that it will give a new impetus and a new direction to the self-reliant India campaign. (ANI)