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Covid-19 crisis: Relief for MSME promoters under debt scheme likely

The government had, in May last year, announced a slew of measures to help MSMEs tide through the Covid-19 crisis.

State-owned banks have sanctioned loans, which have 100 per cent sovereign guarantee on defaults, worth Rs 17,706 crore in total

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The response to the scheme has been lukewarm, government and industry officials said

3 min read Last Updated : Jun 21 2021 | 6:10 AM IST

The Centre is planning to make procedural changes in the stressed asset guarantee plan for small businesses to make it more popular. With this, promoters may not need to take risk in their personal capacity to avail the benefits of the scheme.

“The industry has been calling for tweaking some provisions of the scheme so that more businesses are able to avail benefits. There could be around four-five procedural changes in the scheme,” a senior government official told Business Standard.

The micro, small and medium enterprises (MSME) ministry will soon take it up with the finance ministry's department

Topics : Coronavirus MSMEs debt investor Stressed assets

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