New MSME's of a Self Reliant India

India’s government said on Wednesday it will offer nearly $60 billion of loan guarantees for small businesses, shadow banks, and power companies as part of measures to combat the economic damage caused by the novel coronavirus pandemic.

 In addition, the government will set up two debt and equity funds amounting to 700 billion rupees ($9.3 billion) to support stressed businesses and will contribute to the social security funds of workers for three months. 

The measures are part of a 20 trillion rupee fiscal and monetary package announced by Prime Minister Narendra Modi on Tuesday to support the economy, which has been battered by a weeks-long lockdown to curb the virus’ spread. 

Finance Minister Nirmala Sitharaman told reporters the government aims to help 4.5 million businesses by October by providing credit guarantees to help them access collateral-free loans from banks.

“We have a responsibility toward the poor, the needy, the migrants and the disabled,” Sitharaman said, in the first of several daily press conferences on the package. 

She also said the government will provide 900 billion rupees ($11.95 billion) for power distribution companies via state-run power finance companies. 

Real estate companies will be able to claim relief from regulatory penalties for up to six months when completion of projects is delayed because of the coronavirus, Sitharaman said. Industry leaders were broadly supportive. 

“The measures announced by the finance minister are very well-targeted and meet the immediate as well as longer-term requirements,” top industry body the Confederation of Indian Industries (CII) said in a statement. 

Sitharaman said the package would be partly funded through additional government borrowing already announced. (Reuters). 

 

 

{{getArticleReviewList.length}} Comments
{{item.FirstName}} {{item.LastName}}

{{item.LastActivityOn | date:'dd MMM, yyyy hh:mm:ss a'}}

{{item.Description}}

OBSERVENOW News Desk

We are the new sense of news

Post Comment

Please enter first name.
Please enter at least one latter.