(Click Here) Back to E-Bulletin Home

MSME Stimulus Package

 

Govt. of India, Reserve Bank of India and Public Sector Banks have taken several measures for stimulating the economy to deal with the present global Economic slow down. The gist of measures is as below:

 

  • Cenvat cut of 4% points on all products for the reminder of the financial year
  • 2% interest rate subvention in pre and post shipment credit for small & Medium enterprises sector.
  • Guarantee cover under Credit Guarantee Scheme (CGS) for Micro and small enterprises on loans will be extended from Rs 50 lakhs to Rs 1 crores with a guarantee cover of 50%
  • Lock-in period for loans covered under the existing CGS scheme will be reduced from 24 to 18 months.
  • Government to issue an advisory to central public sector enterprises and request state public sector enterprises to ensure prompt payment of bills of MSMEs.

·    Special monthly meeting of State Levels Banker’s Committee would be held to oversee the resolution of credit issues of MSMEs by banks. 

·  Ministry of MSME and Department of Financial Services has jointly set up a cell to monitor the progress on this front.

  ·To enhance the flow of credit to micro enterprises, the guarantee cover extended by credit guarantee fund trust will be increased to 85% for credit facility up to Rs 5 Lakhs.

 

Measures announced by the Reserve Bank of India:

 

·                                Refinance limit of Rs 7,000 crores to SIDBI for incremental on-lending to the MSE sector, directly or through banks, NBFCs, and SFCs.

·                                Banks have been advised to contribute an aggregate amount of Rs 2000 crores to the MSME Refinance Fund with SIDBI.

·                                As a one time measure, the second structuring done by banks of exposures upto Jun30, 2009, will also be eligible for exceptional regulatory treatment.

·                                While sanctioning/ renewing credit limits to their large corporate borrowers, banks have been advised to fix separate sub-limits, within the overall limits, specifically for meeting payment obligations in respect of purchases from MSEs.

 

Measures announced by the Public Sector Banks:

 

·                                Public Sector Banks to grant need based adhoc Working Capital Demand Loans upto 20% of the existing fund based limits in respect of units having overall fund based credit facility upto Rs. 10 Crores.

·                                Reducing interest rates for borrowing by micro industries by 1% (for all existing and new loans) and in respect of SMEs where banks have fund based exposures upto Rs. 10 Crores by 0.5%.

·                                Moratorium period will be extended in respect of loans availed by MSMEs where project implementation have been delayed in the current scenario.

·                                Finance for purchase of gensets will be made available on soft terms.

·                                Public sector banks will setup Regional MSME Care Center to facilitate MSME entrepreneurs for quick disposal of their grievances. The functioning of these centers will be monitored directly by the o/o. AS&DC (MSME) and the list of these centers will be posted on IBA portal and on the website of each public sector bank.

 

 

 

Establishment of MSME Credit

Monitoring Cell

 

The Government has set up a MSME Credit Monitoring Cell.  Matters of MSMEs remaining unresolved with the Banks – SME Helpline for more than a fortnight brought to the notice of the Cell would be taken up with the bank concerned for early resolution.

 

MSMEs may please contact for lodging such grievances at: -

 

Ψ     S. Vijay Kumar, Director  Telephone No.  0731 – 2420723

V. M. Kshire, Asstt. Director ( Stat. ) Mobile No. 94254 10619

 

          MSME – Development Institute

Government of India

Ministry of Micro, Small & Medium  Enterprises

10 – Industrial Estate, Pologround, Indore – 452 015   (M.P.)

          Telefax No. 0731 – 2420723

Tele Phone Nos. (EPABX) 0731 – 2421037 / 2421540 /  2421659

          E-Mail ID  dcdi-indore@dcmsme.gov.in

 

Ψ     Shri P.K.Mukhergee, Dy. Director

Shri Budh Prakash, Dy. General Manager, SIDBI

Telefax No. 011 – 23062465

          E-Mail ID  creditmon@dcmsme.gov.in

          O/o the Development Commissioner (MSME)

Government of India

Ministry of Micro, Small & Medium  Enterprises

Room No. 734 B, 7th Floor, A-Wing, Nirman Bhawan,

Maulana Azad Road, New Delhi – 110 108.

 

The MSME Credit Monitoring Cell would entertain such cases that have been referred to the cell after having not been resolved by the Bank within 14 days. The petition so received would be forwarded to the concern Banks by the cell with a request for appropriate action and report within a fortnight. A running serial number would be put on the petitions/ grievances received by the cell for easy identification.

 

(Click Here) Back to E-Bulletin Home