Financial aid to benefit 45 lakh MSMEs, says Yediurappa
Bengaluru, May 13 (IANS) Welcoming the central government’s financial aid to the industrial sector, Karnataka Chief Minister B.S. Yediyurappa on Wednesday said Rs 3 lakh crore collateral-free loans would benefit 45 lakh micro, small and medium enterprises (MSMEs) across the country.
“Rs 3-lakh crore aid will be a boon to 45-lakh MSMEs and thousands of their employees across the country. The collateral-free loans will enable them to resume operations after prolonged lockdown, enforced in March to contain the coronavirus spread,” Yediyurappa said in a statement here.
Giving details of the Rs 20-lakh crore stimulus package Prime Minister Narendra Modi announced on Tuesday in a nationwide address to revive the Covid-19-hit economy, Union Finance Minister Nirmala Sitharaman said in New Delhi that the MSMEs would get collateral-free loans worth Rs 3 lakh crore to restart and rev-up their operations.
Lauding Modi and Sitaraman for the stimulus package to the manufacturing and services sectors, which contribute 75-80 per cent to the national GDP (gross domestic product) growth, Yediyurappa said Rs 90,000 crore one-time liquidity (funds) to electricity distribution companies (discoms) would help them and hundreds of their employees from losses incurred over the years.
“Similarly, Rs 30,000 crore support to non-banking financial companies (NBFCs), income-tax exemption and refund of Rs 50,000 crore to non-salaried employees and Rs 6,750-crore contribution to the Employees Provident Fund (EPF) and entrepreneurs will benefit them and their employees,” said the chief minister.
The finance minister also said no-global tender for state-funded projects worth Rs 200 crore would stimulate growth and help the MSMEs to bid for them.
“None of the Covid-affected countries the world over announced such a huge economic revival package for the industrial sector. This is a bold step for motivating people to exit the lockdown and resume work,” added Yediyurappa.
–IANS
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