New Special Fund with Rs 4000 Crore corpus for MSMEs launched

With a view to insulate the employment-oriented export sectors from the global meltdown, Shri Pranab Mukherjee, Union Finance Minister, has extended the interest subvention scheme beyond the current deadline of September 30, 2009 to March 31, 2010. The government had provided an interest subvention of 2% on the pre-shipment credit for seven employment-oriented export sectors, viz., textiles including handlooms, handicrafts, carpets, leather, gems & jewellery, marine products and small & medium exporters.

To facilitate the flow of credit to Micro, Small & Medium Enterprises (MSMEs) at reasonable rates, the Minister announced a Special Fund out of Rural infrastructure Development Fund (RIDF) to Small Industries development Bank (SIDBI). This fund of Rs.4,000 core will incentivize banks and State Finance Corporations (SFCs) to lend to Micro & Small Enterprises (MSEs) by refinancing 50% of incremental lending to MSEs during the current financial year.

Source : Equity Bulls

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