MSMEs to get fund relief soon as part of Aatmanirbhar Bharat Abhiyan
With the ongoing pandemic, industries across sectors are grappling with the harsh realities of economic slowdown. India’s MSME sector is facing a major crisis owing to the shortage of capital and less revenues.
To provide Rs 50,000 crore equity support to stressed MSME units, a Fund of Funds announced as part of the Rs 20.97 lakh crore Aatmanirbhar Bharat Abhiyan package is expected to get operation soon, as per the recent announcement by State Bank of India Chairman Rajnish Kuma. The objective of the Rs 10,000 crore Fund of Funds scheme is to help MSMEs with growth potential at a time when they are facing severe shortage of equity and low revenues.
Talking about various steps taken to help MSMEs, he said banks have announced an emergency credit line for such businesses to improve their liquidity which has been hit by the outbreak of COVID-19. Another liquidity enhancement measure was through support by way of a subordinated debt which was guaranteed by the government for the troubled MSMEs, he said.