Rs 2 lakh cr outlay for CGTMSE will elevate financial institutions credit outreach to MSMEs: U GRO Capital MD

New Delhi, Feb 2 (KNN) Reacting on the Union Budget announced on Tuesday, Shachindra Nath, Executive Chairman and Managing Director, U GRO Capital said the credit support of Rs 2 lakh crore provided in the form of Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) for micro and small enterprises will help financial institutions to mitigate risk and stimulate credit outreach to MSMEs. 

According to Nath, the budget included an encouraging set of measures, targeted towards rapid growth of MSME sector and the economy. 

“The extension of ECLGS scheme by Rs. 50,000 upto March 2023, with a special focus on ailing hospitality sector is crucial to facilitate its faster recovery,” he stated. 

He agreed that inter-linking of Udyam, e-SHRAM, NCS & ASEEM portals and providing services such as credit facilitation and entrepreneurial opportunities will certainly aid in the MSME sector’s formalization and growth. 

“The Government has time and again shown distinctive support to the country’s MSME sector and encouraged its contribution to the Atmanirbhar Bharat imperative,” he added welcoming the budget. 

The measures announced in Union Budget 2022-23 will unlock rapid recovery and holistic growth of the MSME sector, he said commenting on the overall budget. (KNN Bureau)