India Covid Stimulus Report Card: 25k Crore Disbursed to Farmers, Rs 1.63 Lakh Crore to MSMEs

New Delhi: The Ministry of Finance on Sunday presented the progress of the implementation of the government’s Rs 20 lakh crore Atma Nirbhar Bharat relief package.

The ministry said out of the allocated Rs 30,000 crore of Additional Emergency Working Capital Funding for farmers through NABARD, Rs. 25,000 crore has been disbursed while the balance of Rs 5,000 crore under Special Liquidity Facility (SLF) is allocated to NABARD by RBI for smaller NBFCs and NBFC-MFIs. NABARD is finalising operational guidelines to roll it out soon.

Besides, NABARD has also launched Structured Finance & Partial Guarantee scheme in collaboration with two agencies & banks to help unrated non-banking finance companies (NBFCs) and Micro Finance Institutions (MFIs) to get credit from lenders.

The Ministry also said as of August 28, banks have approved the purchase of portfolio of Rs 25,055.5 crore and are currently in the process of approval for additional Rs 4,367 crore under the Rs 45,000 crore Partial Credit Guarantee Scheme 2.0 for NBFCs, HFCs and MFIs for fresh lending to MSMEs and individuals.

SBICAP was assigned to set up an SPV to implement the Rs 30,000 crore Special Liquidity Scheme for lending to NBFCs, HFCs, MFIs which was launched on July 1, 2020, the ministry said.

As on 11th September 2020, 37 proposals involving an amount of Rs. 10590 crore have been approved. Six (06) applications seeking financing of Rs. 783.5 crore are under process.

As on September 10, 23 public sector banks and top private banks lent Rs. 1.63 lakh crore to 42,01,576 borrowers. Amount of Rs. 1.18 lakh crore has been disbursed to 25,01,999 borrowers as on September 10, the Finance Ministry statement said.

The government announced a scheme to disburse Rs 3 lakh crore collateral-free automatic Loans for businesses, including MSMEs under which it said, additional working capital finance of 20% of the outstanding credit as on February 29, in the form of a term loan at a concessional rate of interest will be provided. This will be available to units with upto Rs 25 crore outstanding and turnover of up to Rs 100 crore whose accounts are standard, it said. The units will not have to provide any guarantee or collateral of their own under the scheme. The amount will be 100% guaranteed by the Government of India providing a total liquidity of Rs. 3 lakh crore to more than 45 lakh MSMEs.

Source: TNN