Self Reliant India: Govt Announces Rs 20,000 Cr Subordinate Debt for Stressed MSMEs

Guwahati:

The Indian Government has announced Rs 20,000 crores subordinate debt for stressed Ministry of Micro, Small and Medium Enterprises (or MSMEs).

The Government of India will facilitate provision of Rs 20,000 crores as subordinate debt and two lakh MSMEs are likely to be benefited.

Functioning MSMEs which are NPA or are stressed will be eligible. Moreover, Government will provide a support of Rs 4,000 crores to Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) which, in turn, will provide partial Credit Guarantee support to banks.

The promoters of the MSMEs will be given debt by the banks which will then be infused by promoter as equity in the unit.

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