Govt announces Rs 1416 crore Covid package for MSMEs

THIRUVANANTHAPURAM: A special package of Rs 1416 crore has been announced to revive the industrial sector in crisis. This is in addition to the interest reduction of Rs 139 crore announced in the budget.

Minister P Rajeev made the exciting announcement to the entrepreneurs on the World MSME Day webinar.

This will help normalize small and medium enterprises facing a major crisis in the lockdown. This will be effective from July 1 to December.

N Khalid, state president of the Small Industries Association, said the project would give a boost to the sector. Srinath Vishnu, state chairman of the Confederation of Indian Industries, said the concessions would bring relief to entrepreneurs. FICCI Kerala Co-Chairman Deepak Ashwini said the announcement was awaited by the business community.

Dr. K. Elangovan, Principal Secretary, Department of Industries and Mr. Bhandari Swagat Ranveerchand, Director, Department of Industries also spoke.

Covid package

* The 'Vyavasaya Bhadratha' scheme, which provides up to Rs. 1,20,000 at 50% interest to 5000 small and medium enterprises, has been extended till December 31.
* Entrepreneurship subsidy for 3000 units has been increased to Rs 30 lakh and subsidy for backward districts and priority enterprises has been increased to Rs 40 lakh.

* Assistance for nano units has been increased from Rs 5 lakh to Rs 10 lakh.
* KSIDC will restructure the loan repayment due to lockdown.
* KSIDC loan moratorium extended till June 2021. Three months interest is also waived.
* One-year penalty interest on KSIDC loans has also been waived for one year from April.

* 100 crore loan at 5 percent interest to entrepreneurs.
* Returned NRIs will be given loans at 5 percent interest
* Loan packages for healthcare industries
* Down payment of KSIDC land is only 20%. The remaining 5 installments can be paid without interest.

Covid package worth Rs 1,416 crore

Vyavasaya Bhadratha Scheme 400 crore

Entrepreneurship assistance 445 crore

60 crore for priority sector in nano sector

Capital assistance in Nano sector 30 crore

179 crore loan restructuring

100 crore loan at 5 percent interest

100 crore for health industries

Moratorium and other deductions 102 crore