ECLGS sanctions Rs.2.73 lakh crore
The Government of India has announced Fund of Funds with the nomenclature Self Reliant India (SRI) Fund to infuse Rs.50,000 crore as equity funding in those MSMEs which have the potential and viability to grow and become large units.
Informing the Rajya Sabha through a written reply, Minister for Micro. Small and Medium Enterprises Narayan Rane said the Rs.50,000 crore fund has a provision of Rs.10,000 crore from the Government and Rs.40,000 crore would be leveraged through Private Equity and Venture Capital funds.
The guidelines of the fund have been issued.
This initiative is aimed at providing growth capital to the deserving and eligible units of MSME sector.
Meanwhile, Rs.2.73 lakh crore have been sanctioned as of 2 July 2021 under the Emergency Credit Line Guarantee Scheme (ECLGS) of which Rs.2.14 lakh crore has been disbursed.
The Department of Financial Services has also issued guarantees for loan granted to around 1.09 crore MSMEs as of 2 July 2021.
The eligibility criteria for availing credit under ECLGS are:
The scheme was designed to support existing borrowers meet the liquidity crisis due to Covid-19 pandemic.
The MSME Ministry has also launched Credit Guarantee Scheme for Subordinate Debt (CGSSD) to extend financial assistance to stressed MSMEs including NPA accounts.
The credit needs of the first time bowers belonging to the Micro and Small Enterprises are catered to by the Credit Guarantee Scheme for Micro and Small Enterprises, said Rane.
Also, all new and existing Micro and Small Enterprises engaged in manufacturing or services including trading activity are eligible to be covered under Credit Guarantee Scheme (CGS) implemented by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). No eligible proposal is denied.
Up to 30 June 2021, CGTMSE has approved 5,386,739 guarantees cumulatively for Rs.272,007 crore.
During the first quarter of Financial Year 2021-22, CGTMSE has reported that guarantee approvals with respect to Banks and NBFCs are Rs.6,693 crore and Rs.6,603 crore, respectively. Comparatively, these were Rs.6,041 crore and Rs.2,934 crore during first quarter of Financial Year 2020-21.
The Government has announced a relief package to support Indian Economy including the MSME Sector. This package inter-alia also includes measures such as Rs.1.1 lakh crore loan guarantee scheme for Covid affected sectors, additional Rs.1.5 lakh crore for Emergency Credit Line Guarantee Scheme and Credit Guarantee Scheme to facilitate loans to approximately 25 lakh small borrowers through Micro Finance Institutions among others, Rane said. #banking #investment #credit #manufacturing /fiinews.com
