News Bureau

 
 
August 10, 2022

Implementation of Schemes for MSMEs

The Government has taken a number of initiatives under the Aatma Nirbhar Bharat Abhiyan to promote the Micro, Small and Medium Enterprises (MSMEs) sector in the country. The details of two major schemes are as under:

i. Emergency Credit Line Guarantee Scheme (ECLGS): The Emergency Credit Line Guarantee Scheme (ECLGS) was announced as part of the Aatma Nirbhar Bharat Package in May, 2020 to support eligible MSMEs and other business enterprises to meet their operational liabilities and resume businesses in view of the distress caused by the COVID-19 crisis.

This scheme covers all the sectors of the economy. Under this, 100% guarantee is provided to Member Lending Institutions (MLIs) in respect of the credit facility extended by them to eligible borrowers. The scheme is valid till 31.03.2023.

ii. Self-Reliant India (SRI) Fund: The Government of India has announced Fund of Funds with the nomenclature Self-Reliant India (SRI) Fund to infuse equity funding in MSMEs which have the potential and viability to grow. Under this scheme Government has a provision of corpus of Rs.10,000 crore from Government of India.

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 MSME Sector. The terms of reference of the said study inter-alia also included assessment of losses suffered by MSME sector due to Covid-19 pandemic.

The said study was based on a survey conducted by SIDBI taking a random sample pool comprising 1,029 MSMEs spread across 20 States and 2 Union Territories. The report of the study submitted on 27th January, 2022, reveals that 67 percent of the respondent MSMEs were temporarily closed for upto a period of 3 months.

The study reveals that around 65 percent of the MSMEs surveyed, have availed the benefits under Emergency Credit Line Guarantee Scheme and around 36 percent of the respondents also availed loans under the Credit Guarantee Fund Trust for Micro and Small Enterprises scheme.

 

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