MUMBAI: The Centre's move to increase the threshold for filing insolvency applications and a special resolution framework for small businesses will give some breathing room to the micro, small and medium enterprises (MSMEs) but resolution of stressed assets will take a beating.
Finance minister Nirmala Sitharaman on Sunday announced that the government has decided to increase the threshold for applications under the Insolvency and Bankruptcy Code (IBC) to ₹1 crore from ₹1 lakh.
The move, lawyers said, would aid small businesses that have been under pressure because of the covid-19 lockdown and even before.
The government also plans to bring in a special insolvency resolution framework for small businesses, which so far were largely on the