'Govt exploring support to small-scale unit' says Gadkari; discusses COVID's MSME impact

Union Minister Nitin Gadkari on Monday held a meeting with members of Calcutta Chamber of Commerce via video-conference on impact of COVID-19 on MSMEs, as well as measures to address challenges. minister stated that  government is exploring new financial lending institutions to support small-scale units. He furr added that y are working towards strengning NBFCs that will help small businesses to avail easy credit in coming time.

According to Union Minister,  MSME Ministry is working on two booklets to cover details about last three year's export and import. Speaking about special 'Aatmanirbhar Bharat' ecomic pack anunced by Centre, Gadkari said that measures will provide required support to MSMEs to face current ecomic challenges. He furr informed that re has been restructuring of 6 lakh MSMEs till March 2020. According to him, ministry is aiming to cover an additional 25 lakh units until December 2020. Meanwhile, current contribution of MSMEs in export is 48 percent, which may be increased to 60 percent.

He furr requested all stakeholders to work in tandem and urged industry to maintain a positive attitude to tide over COVID-19 crisis. According to an official release, minister also stressed on us of masks, sanitizers, and maintaining social distancing.

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Anuncement on MSMEs

As a part of Rs 20 lakh crore ecomic pack anunced by Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman anunced collateral-free automatic loans for businesses, including MSMEs of up to Rs 3 lakh crore. Under this initiative, borrowers with up to Rs 25 crore outstanding and Rs 100 crore turver would be eligible for special collateral-free loan. This loan will have a 4-year tenure with a moratorium of 12 months on principal repayment and interest will be capped.

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Furr, re will be a 100 percent credit guarantee cover to banks and NBFCs on principal and interest. initiative can be availed till October 31, 2020, and guarantee fee and fresh collateral would be required. 45 lakh units can resume business activity and safeguard jobs on back of scheme. 

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(With ANI Inputs)