Centre clears Rs 75,471 cr MSME dues from June 2020 to October 2021

New Delhi, 14 Dec (KNN) Addressing the Lok Sabha on Monday, Union Minister of State for Finance Pankaj Chaudhary in a written reply to a question said, dues of INR 75,471.78 crore have been paid to the MSME vendors by Government Ministries/Depts/CPSUs between 1st June 2020 and 31st October, 2021.

Highlighting the implementation of the schemes by the Central government, he stated that they are reviewed regularly to gauge its impact.

He also gave brief details about the other schemes that have been announced under Atmanirbhar Bharat Package to provide support for growth of MSME sector.

Emergency Credit Line Guarantee Scheme (ECLGS) which was announced in May,2020 later developed into 4 parts. 

ECLGS 2.0, ECLGS 3.0. & ECLGS 4.0. were announced on 26th November, 2020 and 26th November, 2021 and 31st May, 2021. 

Validity of the Scheme extended up to 31st March, 2022 or till guarantees for an amount of INR 4.5 lakh crore are issued, whichever is earlier.

However according to several media reports, the scheme is expected to be extended for another year. 

INR 20,000 crore Credit Guarantee Scheme for Subordinate Debt (CGSSD) for Stressed MSMEs launched on 1st June, 2020. 

Self-reliant India Fund for equity infusion of Rs 50,000 cr. in MSMES through Fund of Funds (FoF] announced with a Corpus of INR 10,000 crores with remaining INR 40,000 crore leveraged through Private Equity/Venture Capital Funds.

The chief objective of Atmanirbhar Bharat Package is to strengthen the Indian economy and increase its competitiveness in the global market and to promote self-reliance by providing financial assistance to Micro, Small and Medium Enterprises (MSMEs). 

Hence the loans are collateral free, which encourages entrepreneurs to produce maximum goods and services within the country.