On World Micro, Small and Medium Enterprises (MSME) Day (June 27, 2021), the Small Industries Development Bank of India (SIDBI), has rolled out multiple measures to support COVID-19 hit MSMEs.
Initiatives undertaken by SIDBI:
a.TWARIT Scheme:
i.To enhance the credit access SIDBI has reduced the interest rate of the ‘Timely Working Capital Assistance to Revitalise Industries in Times of Corona Crisis’ (TWARIT) scheme under ECLGS (Emergency Credit Line Guarantee Scheme) from 8.25 percent to 6 percent for its existing customers.
ii.TWARIT was launched by SIDBI in September 2020 to provide relief to MSME units whose operations are affected due to COVIDE-19.
iii.Under TWARIT, SIDBI provides a maximum loan of up to Rs 25 crore with an interest rate of 6 percent per annum with the maximum tenure of 4 years and a moratorium of 1 year.
iv.Loans under the scheme would be sanctioned by SIDBI till September 2021 and would be dispersed up to December 2021/notification of NCGTC, whichever is earlier.
b.PRAYAAS scheme:
i.SIDBI plans to launch a Swavalamban Challenge Fund and a Swavalamban Facilitation Center under its PRAYAAS scheme for mentoring and providing credit to MSMEs in villages and small towns through microfinance institutions.
ii.Under PRAYAAS, SIDBI provides loans of up to Rs 5 lakh at an interest rate of up to 13 percent for borrowers with a corpus of Rs 1,000 crore.
iii.SIDBI signed a Memorandum of Understanding (MoU) with Government Engineering College Thrissur, Kerala to set up a Swavalamban Chair for MSME solutions to promote entrepreneurship among students.
c.Engagement with CIMSME: SIDBI has also engaged with the Confederation of Indian Micro, Small and Medium Enterprises (CIMSME) for setting up Swavalamban Suvidha Kendra to assist them in adopting digital solutions like Udyamimitra portal, Standupmitra portal, etc.
d.Project Management Units:Based on the recommendations of the UK Sinha Committee, SIDBI announced the setting up of Project Management Units on MSMEs in 11 states including Uttarakhand, Delhi, Haryana, Rajasthan, Uttar Pradesh, Assam, Gujarat, Maharashtra, Karnataka, Andhra Pradesh, and Tamil Nadu.
e.SIDBI has entered into an MoU with the ‘Global Alliance for Mass Entrepreneurship’ (GAME) to help MSMEs. Click here to know more
Note – According to the survey of the Consortium of Indian Associations (CIA), around 73 percent of SMEs haven’t made a profit in FY21 and 88 percent of SMEs have not yet availed of any of the packages introduced by the government amid COVID-19.
Recent Related News:
In May 2021, SIDBI launched two new quick credit delivery schemes named SHWAS and AROG to help MSMEs.
About Small Industries Development Bank of India (SIDBI):
It is the financial institution engaged in the promotion, financing and development of MSMEs.
Establishment – 1990
Headquarters – Lucknow, Uttar Pradesh
Chairman & Managing Director – Shri Sivasubramanian Ramann
