Government extends subordinate debt scheme till March 2023 to uplift stressed MSMEs
According to a statement, the government has received several requests from the stakeholders of this scheme to extend the date further, and thus, a step in this direction has been taken.
In a bid to uplift the Micro, Small and Medium Enterprises (MSMEs), the government has extended the Credit Guarantee Scheme for Subordinate Debt (CGSSD) up to March 31, 2023.
A statement released by the Ministry of MSMEs said that the subordinate scheme was initially extended till March 31, 2022, in order to "keep the avenues of assistance to stressed MSME Units open".
The government, the statement revealed, has received several requests from the stakeholders of this scheme to extend the date further, and thus, a step in this direction has been taken.
The scheme was approved by the government on June 1, 2020, as part of the Aatmanirbhar Bharat Stimulus package, and was launched on June 24 the same year to provide credit facility through lending institutions to the promoters of stressed MSMEs.
This includes SMA-2 and NPA accounts that are eligible for restructuring as per RBI guidelines on the books of the lending institutions.
In February, Finance Minister Nirmala Sitharaman also announced that the Emergency Credit Line Guarantee Scheme (ECLGS) has been extended to March 31, 2023.
According to a report by the India Brand Equity Foundation (IBEF) is home to about 6.3 crore MSMEs. This sector is one of the largest employment generators in the country, second only to agriculture. This sector, according to experts, has been the worst affected in the wake of the coronavirus pandemic.
Edited by Megha Reddy
