In order to manage the national emergency and distress caused by COVID-19, the Small Industries Development Bank of India (SIDBI) has launched SHWAS & AROG, two new quick credit delivery schemes to help Micro,Small and Medium Enterprises (MSMEs).
About the two current credit fund schemes:
i.SHWAS (SIDBI assistance to Healthcare sector in War Against the Second wave of COVID-19) – This scheme will fund MSMEs who are engaged in manufacturing of oxygen cylinders, oxy-generators, oxygen concentrators, liquid oxygen or providing services in transportation, storage, refilling to supply of these items.
ii.AROG (SIDBI Assistance to MSMEs for Recovery & Organic Growth during COVID-19 pandemic) – It will fund for MSMEs engaged in manufacturing of Pulse Oximeters, Permitted drugs (Remdesivir, Fabiflu, Dexamethasone, Azithromycin), Ventilators, and Personal protective equipment(PPEs).
- Both the schemes will provide the MSME units with 100 percent funding up to an amount of ₹2 crores at an attractive interest rate of 4.50-6 percent, within 48 hours (after receipt of all the documents/information).
- The schemes are devised under the guidance from Government of India (GoI) which facilitates funding for production and services related to supply of oxygen cylinders, oxygen concentrators, oximeters and essential drugs.
About the SAFE scheme:
- In March 2020, SIDBI had launched a similar kind of fund scheme called SAFE (SIDBI Assistance to Facilitate Emergency response against COVID-19) to all MSMEs who are engaged in manufacturing any product which is related to fighting COVID-19 (such as, hand sanitisers, masks, bodysuits, ventilators, testing labs).
- More than 400 MSME units have been sanctioned financial assistance under SAFE amounting to a total of ₹178 crores in FY21.
Recent Related News:
On 2nd March 2021, the National Stock Exchange of India Limited (NSE India) signed a Memorandum of Understanding(MoU) with SIDBI for the cooperation in the various MSMEs initiatives of NSE and SIDBI and to explore the feasibility of debt Capital Platform for the MSMEs.
About Small Industries Development Bank of India (SIDBI):
It is a Principal Financial Institution established to promote, finance and develop MSME sectors.
Establishment – 2nd April 1990 (under an Act of Indian Parliament)
Headquarters – Lucknow, Uttar Pradesh
Chairman & Managing Director – Sivasubramanian Ramann
Deputy Managing Director – V Satya Venkata Rao
