Centre Introduces Bill To Help Pandemic-Hit Small Enterprises

The Centre on Monday introduced a bill in Lok Sabha for providing a resolution process for financially stressed micro, small and medium enterprises.

The Centre on Monday introduced a bill in Lok Sabha for providing a resolution process for financially stressed micro, small and medium enterprises (MSMEs), especially those which have been affected by the Coronavirus pandemic. The bill will amend the insolvency law and offer what is being termed, a pre-packaged resolution process for such small enterprises. The proposed amendments would help notify the threshold of a default not exceeding Rs 1 crore for initiation of pre-packaged resolution process. The Centre has already prescribed the threshold of Rs 10 lakh for this purpose. The Insolvency and Bankruptcy Code (Amendment) Bill, 2021, which was introduced by Finance Minister Nirmala Sitharaman, will replace the ordinance that came into effect on April 4, 2021 to provide relief for pandemic affected MSMEs.