Goa Industrial Development Corporation lowers MSME penalty interest rate to 5%

Panaji, June 22 (KNN) The Goa Industrial Development Corporation (GIDC) on Wednesday decided to reduce the penalty interest rate on pending dues from 11% to 5% vide a one-time-settlement scheme.

The aim is to help MSME units in the state to become financially stable and it was decided during the 385th board meeting.

The one-time-settlement scheme is intended for units with legacy dues, which are otherwise very difficult to recover.

Speaking soon after the meeting, GIDC managing director Pravimal Abhishek said the amnesty scheme is aimed at aiding the recovery of industries adversely affected by COVID-19. “A lot of MSME units in the state suffered business losses during the pandemic,” he said.

The GIDC MD explained that only the penal interest is being reduced and there is no waiver of the principal amount or the interest rate.

“The scheme is also aimed at curbing the growing cases of industrial sickness in the state,” he said.   

“The lease rate is kept unchanged, as the local MSME sector is in the process of revival from the pandemic setback,” he said.

Goa has about 26,940 MSME units registered on the Udhyam portal as on February 2023. The number of MSME units unable to repay bank loans shot up to 15% during the quarter ended September 2022 from 8.3% in the previous quarter, as per the information disclosed at the Reserve Bank of India-Goa’s empowered committee on MSMEs.  (KNN Bureau)