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Inter-ministerial group to develop credit guarantee scheme for MSMEs
Industry News- Aug 26,24
The MSME ministry will present the scheme to the Expenditure Finance Committee for approval following a series of consultations with stakeholders.
The government has established an inter-ministerial group tasked with finalising the details of a credit guarantee scheme for micro, small, and medium enterprises (MSMEs), as outlined in the recent budget. This scheme aims to provide support for MSMEs by covering loans of up to Rs 1 billion for machinery purchases and establishing a guarantee fund to assist stressed MSMEs and prevent them from becoming non-performing assets (NPAs).
The MSME ministry will present the scheme to the Expenditure Finance Committee for approval following a series of consultations with stakeholders. According to a senior government official, the draft of the scheme is expected to be completed within the next four weeks, with the final approval anticipated within two months.
The inter-ministerial group includes representatives from the Department of Financial Services, Department of Commerce, Ministry of Food Processing, and Department of Economic Affairs. The group's objective is to gather stakeholder feedback and address any concerns before the scheme's implementation.
Finance Minister Nirmala Sitharaman introduced the MSME package in the budget, emphasising the need for a credit guarantee scheme to bolster MSME growth and stability.
(ET)
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