new delhi in a big boost for micro small and medium enterprises msmes the cabinet committee on economic affairs on monday approved rs 20000 crore fund infusion into the sector and further amended its definition since the announcement of the atmanirbhar bharat packagebriefing the media on the decisions taken by the cabinet union ministers prakash javadekar nitin gadkari and narendra tomar said that the measures will improve ease of doing business attract investments and create jobs for the msme sectorin a bid to strengthen their growth potential the government approved rs 50000 crore equity infusion for msmes along with rs 20000 crore subordinate debt for stressed msmescabinet has approved modalities and road map for implementing two packages for msmes rs 20000 crore package for distressed msmes and rs 50000 crore equity infusion through fund of funds nitin gadkari saidthe decision on equity infusion will also enable micro small and medium enterprises msmes to get listed on stock exchangesthe government has further amended the definition of msmes since the announcement of the rs 20 lakh crore atmanirbhar bharat package last month as per the latest amendment the turnover limit for medium enterprises has been revised upwards to rs 250 crore from rs 100 crore announced earlier further the investment limit has been raised to rs 50 croreit is notable that the new msme definition has been brougt about 14 years after the implementation of the msme development act 2006 said information and broadcast minister prakash javadekarthe decision was taken post suggestions that came in after the government announced the broadening of the scope of msmes to support and more businesses he addedalso the turnover criteria for msmes will not include revenue from exports further providing flexibility to the sector to expand their operations and push overseas sales he notedfinance minister nirmala sitharaman had last month announced amendment in the definition of msme according to which a firm with investment up to rs 20 crore and turnover under rs 100 crore was classified as medium enterprise however with todays decisions these limits stand further enhancedthe government will also set up a fund of funds with a corpus of rs 10000 crore which will be operated through mother fund and few daughter funds the fund structure will help leverage rs 50000 crore of funds at daughter funds levelmsme minister nitin gadkari said that the changes would benefit 6 crore msmes that together employ 11 crore peoplewith agency inputs