Boost for MSMEs with credit support, doubling of MUDRA loan limit, new SIDBI branches
THE JHARKHAND STORY DESK New Delhi, July 23: In an effort to support the micro, small, and medium enterprise (MSME) sector and…
THE JHARKHAND STORY DESK
New Delhi, July 23: In an effort to support the micro, small, and medium enterprise (MSME) sector and enable it to expand and compete on a global scale, Finance Minister Nirmala Sitharaman outlined a wide range of measures on Tuesday.
Rs 100 crorce Credit Guarantee scheme, MUDRA loan limit doubled
She introduced a Credit Guarantee scheme worth Rs 100 crore for MSMEs, focusing on strengthening in-house capabilities and revolutionizing the credit assessment model for determining credit eligibility.
The scheme will mitigate credit risks for MSMEs through a self-financing guarantee fund. Each applicant will be covered up to Rs 100 crore, though the loan amount can be higher.
The initiative seeks to strengthen MSMEs by lowering credit risks and improving access to financing.
The government has raised the MUDRA loan limit for the Tarun category from Rs 10 lakh to Rs 20 lakh.
Sitharaman announced cutting the turnover threshold for mandatory onboarding onto the TReDS (Trade Receivables Electronic Discounting System) platform from Rs 500 crore to Rs 250 crore.
Also Read- Changes in income tax slab, standard deduction raised by 50% to Rs 75,000
Expansion of SIDBI branches
Sitharaman announced that the Union government will expand the branches of the Small Industrial Development Bank of India (SIDBI) to support micro, small, and medium enterprises (MSMEs) across 168 out of 242 clusters within three years. SIDBI plans to establish 24 new branches during the current financial year.
E-commerce export hubs
E-commerce export hubs will be established through public-private partnerships to help traditional artisans and MSMEs introduce their products to international markets.
These hubs will provide a streamlined regulatory and logistical framework, offering trade and export-related services all in one place.
50 multi-product food irradiation units
The union minister announced financial support for establishing 50 multi-product food irradiation units in the MSME sector and will also facilitate the setup of 100 NABL-accredited food quality and safety testing labs.
12 industrial parks
The budget has approved the establishment of 12 industrial parks under the National Industrial Corridor Programme and is facilitating rental housing for industrial workers through public-private partnerships.
