India, Kenya hold Working Group Meeting on Agriculture through Virtual Mode (See 'Corp Brief') NIFTEM-K to organise Global Platform with Participation from 25 Countries (See 'Corp Brief') IBC - Moratorium u/s 14 of IBC is intended to preserve debtor's estate from creditor actions aimed at debt recovery, but does not interdict sovereign proceedings in rem for attachment or confiscation under Benami Act: SC (See 'Legal Desk') ESIC commences 75th Foundation Year Celebrations (See 'Corp Brief') Misc - Telecom operator is liable to pay reserve price fixed for November 2012, 2G spectrum auction from February 2, 2012, date on which its licence stood quashed: SC (See 'Legal Desk') Stakeholder Consultation held for inputs on proposed Advanced Manufacturing Systems Mission (See 'Corp Brief') IPR - Registration of Device Mark is to be considered as whole and while determining deceptive similarity with another Trade Mark: HC (See 'Legal Desk') Biotechnology will power next industrial revolution: MoS (See 'Corp Brief') IPR - Trademark could not be removed simply for non-use: HC (See 'Legal Desk') Union Minister inaugurates Special Handloom Expo (See 'Corp Brief') India, Brazil sign TKDL Access Agreement for protection of Patent (See 'Corp Brief') Memorandum of Cooperation signed between Digital Bharat Nidhi and AP (See 'Corp Brief') IPR - Registered mark is liable to be removed if not used for continuous period of five years & three months prior to filing of petition, unless special circumstances are shown: HC (See 'Legal Desk') Footwear Design and Development Institute celebrates 5th Convocation Ceremony (See 'Corp Brief') 96% houses under PMAY-U 2.0 allotted for women (See 'Corp Brief') SEBI - Adjudication proceedings are nullified where the noticee has ceased to exist on account of being struck off the RoC: SEBI (See 'Legal Desk') India-Brazil MoU signed to Deepen MSME Cooperation (See 'Corp Brief') IFSCA-IICA unveil Strategic Roadmap to institutionalize Corporate Governance Ecosystem at GIFT-IFSC (See 'Corp Brief') Grant support extended to 5 Innovators under CSR-backed Programme (See 'Corp Brief') Misc - Notice u/s 91 of CrPC cannot be issued to accused person to compel them to furnish information that is based on their personal knowledge: HC (See 'Legal Desk') MoS holds bilateral Talks with Rwanda ICT Minister (See 'Corp Brief') India, Brazil sign MoU to strengthen and secure steel supply chain (See 'Corp Brief') Misc - SICA - failure to repay dues or subsequent financial incapacity cannot constitute cheating in he absence of fraudulent intent at time of inducement: HC (See 'Legal Desk') Supreme Court Clears Path For Single Insolvency Proceedings Against Linked Group Companies (See CORP EINSICHT)

Print

Govt had notified Bailout Package for MSMESs Sector: MoS

Published: Aug 01, 2022

By TIOLCorplaws News Service

NEW DELHI, AUG 01, 2022: GOVERNMENT has announced and operationalised Aatma Nirbhar Bharat Package for MSMEs to cope up with the COVID-19 crisis, which inter alia includes the following major schemes:

i. Emergency Credit Line Guarantee Scheme (ECLGS): This scheme was announced as a part of Aatma Nirbhar Bharat Package in May, 2020 to provide Collateral free Automatic Loans for  businesses, including MSMEs. Initially, the admissible limit of the guarantee was Rs. 3 lakh crore which was later enhanced to Rs. 4.5 lakh crore. As per the Budget Announcement 2022-23, the ECLGS is being extended up to March 2023 with an expanded guarantee cover of Rs. 5 lakh crore. The additional guarantee cover of Rs. 50,000 crore is earmarked exclusively for the hospitality and related enterprises.

ii. Self Reliant India (SRI) Fund: The Government of India has announced Fund of Funds as a part of Aatma Nirbhar Bharat Package in May, 2020 ,with the nomenclature Self Reliant India (SRI) Fund to infuse as equity funding in MSMEs which have the potential and viability to grow and become large units. This initiative is aimed at providing growth capital to the deserving and eligible units of MSME sector.

iii. Credit Guarantee Scheme for Subordinate Debt (CGSSD): This scheme was announced in May  2020 as a part of Aatma Nirbhar Bharat Package with a view to  provide credit facility to the promoters of stressed MSMEs viz. SMA-2 and NPA accounts who are eligible for restructuring as per RBI guidelines on the books of the lending institutions. Under the scheme, the promoter would infuse the credit in the MSME as quasi equity or sub-debt.

The Ministry of MSME on 7th September, 2021 assigned a Study to Small Industries Development Bank of India (SIDBI) to assess the impact of change in MSME classification on the Sector. The terms of reference of the said study inter-alia also included assessment of impact of Covid-19 pandemic on the MSME sector. The study reveals that around 65 percent of the MSMEs surveyed, have availed the benefits of Emergency Credit Line Guarantee Scheme.

As informed by Department of Financial Services (DFS), studies have been conducted to assess the impact of the support to MSMEs through ECLGS by National Institute of Bank Management (NIBM), NOMURA and Trans Union CIBIL. The studies have found that under ECLGS, the loans were fairly easy to obtain, cost effective, helpful to fulfil short term financial needs, eased cash flow burden. The scheme has been successful in helping MSME sector navigate through the crisis.

State Bank of India (SBI) came out with a research report dated 06.01.2022 on ECLGS, authored by its Group Chief Economic Advisor. It has been reported that almost 13.5 lakh MSME accounts were saved due to ECLGS scheme (including restructured), of which about 93.7% of the accounts were in Micro and Small category.

This information was given by Minister of State for Micro Small and Medium Enterprises, Bhanu Pratap Singh Verma, in a written reply to the Rajya Sabha today.

TIOL CORP SEARCH

TIOL GROUP WEBSITES

taxindiaonline
taxindiainternational
tioltube
TKF
TIOLawards
A TIOL Website. Copyright © 2025 TIOLcorplaws.com All rights reserved.