More relief for MSMEs hit by Lockdown
More relief for MSMEs hit hard by Lockdown: FM
According to officials, the finance ministry is giving a thought to further relief of funding norms and credit for stressed small industries. However, it is not formally announced that a financial package for MSMEs immediately is being rolled out.
A senior finance ministry official said: “We have received a host of requests from small industries, which includes a loan moratorium for six months. While the central bank has already announced some measures such as restructuring, more measures especially for those MSMEs which are hit hard during regional lockdown are very much on cards."
"The measures under consideration are a special credit window for small firms, relaxation of certain criteria and expansion of the ambit of the existing credit guarantee scheme by including more sectors. Mirco, small and medium enterprises (MSMEs) have already requested specific measures like waivers on electricity bills, tax and GST relief, along with collateral-free credit lines.", added the official.
Last week, Shaktikanta Das, RBI Governor had notified a set of measures to outstreach the support for MSMEs, including Resolution Framework 2.0 under which individuals and small businesses having exposure up to Rs 25 crore can opt for loan restructuring if they had not availed the earlier scheme. In the other hand, the RBI had permitted banks and lending institutions to moderate the plans and increase the period of moratorium for those MSMEs who had availed the loan restructuring under the earlier scheme.
It added that "the restructuring under the proposed framework may be invoked up to September 30, 2021, and would have to be implemented within 90 days after invocation. These measures will provide short term relief, but with extension of local lockdown beyond May, small business owners are bound to face difficult times ahead. Even when the lockdown is not as strict as last year, the devastation in terms of human life may derail the nascent recovery which was visible in January and February of this year."