Millions of Micro, Small, and Medium Enterprises (MSMEs) benefitted by the Govt-backed Loan Scheme announced by the government since the outbreak of the coronavirus pandemic, President Ram Nath Kovind said on Friday, while addressing the Parliament at the beginning of the Budget session.
These include RS 3 trillion emergency credit line guarantee scheme Rs 20,000 special fund for distressed businesses and equity infusion through Fund of Funds, announced by the finance minister Nirmala Sitharaman as a part of the Aatmanirbhar Bharat economic package to enable economic revival.
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"Efforts such as the Rs. 3 lakh crore rupee emergency credit (line) guarantee scheme, the ₹20,000 crore special scheme for the stranded MSMEs (micro small and medium enterprises) and the Fund of Funds have benefitted millions of small entrepreneurs," said the President at the joint sitting of both the houses.
The Emergency Credit Line Guarantee Scheme (ECLGS) was rolled out just after the nationwide lockdown to facilitate businesses in paying for the various obligations such as rent, salaries and other restocking related expenses. The other Fund of Funds initiatives is likely to increase the size as well as capability of small businesses and will also boost those with good track record of financial performance to get listed on the domestic exchanges.
"So far more thanRs25 crore loans have been given under the Mudra scheme, out of which about 70pc loans have been given to women entrepreneurs," President said. Also, the centre has come up with several measures to provide new employment opportunities to women.