SIDBI introduces AROG and SHWAS to fight COVID-19
New Delhi, Apr 30 (KNN) In a bid to fight the second wave of COVID-19, Small Industries Development Bank of India (SDIBI) has introduced two new schemes namely AROG and SHWAS.
The two new schemes extend financial assistance to MSMEs engaged in manufacturing and services of various items which are essential for fighting COVID. The scheme envisages financial assistance to MSMEs at interest rate of 4.5 per cent to 6 per cent without any processing fee.
The objective of AROG will be to provide financial support to all MSMEs which are manufacturing products or providing services which are directly related to fighting coronavirus, such as Pulse Oximeters, Permitted drugs (Remdesivir, Fabiflu, Dexamethasone, Azithromycin, Zincovit, Limcee, Ivermectin, Paracip, Azax, Betadine, etc), Ventilators, PPEs, inhalation Masks, IV Fluid – DNS / Dextrose, IV Sets, IV Cannula, ICU Beds, Cardiac monitors, Syringe pumps, Portable X ray machines, Endotracheal tube, Suction tube, etc.
''Both the products are in the nature of emergency response to the second wave of COVID-19 pandemic, as a social responsibility and national duty,'' said a mail by the SIDBI.
MSMEs with engaged in manufacturing or in services, Existing profit making MSMEs with net profit/cash profit during last two years i.e. FY2019 and FY2020, No default to banks/institutions, Good track record with existing institutions and with Financial Parameters - DER – Maximum 3:1 (Unit as a whole), ACR - Minimum 1.2, DSCR –Minimum 1.25 will be eligible for this scheme.
The objective SHAWS will be to provide financial support to all MSMEs which are manufacturing Oxygen cylinders, Oxy generators, Oxygen concentrators and Liquid Oxygen for medical use or providing services (viz. transportation, storage, refilling, etc.) which are directly related to supply of such items to the customers.
MSMEs engaged in manufacturing and service sectors which are in the business of Oxygen cylinders, Oxy generators, Oxygen concentrators and Liquid Oxygen will be eligible for this scheme. The other eligibility conditions will be the same for SHAWS as they are for AROG.
''In both the schemes, traders shall not be eligible for funding and repayment period for both schemes will upto 3 years,'' the mail further said.
A special scheme called SAFE was introduced last year to extend financial assistance to MSMEs engaged in production of COVID related items like masks, sanitisers, ventilators, medicines, etc. etc. at a very subsidised interest rate of 5 per cent without any processing fee, etc. The scheme came to an end on 31/03/2021.