Capital Current Affairs - 2020

RBI launches OBICUS

On April 16, 2020, the Reserve Bank of India launched OBICUS. This is the 49th round of survey by the apex bank for the period January to March.

Highlights

The Capacity Utilisation declined to 68.6% from 69.1%.

What is OBICUS survey?

OBICUS is Order Books, Inventories and Capacity Utilization Survey (OBICUS). The survey provides an insight into the demands of the Indian manufacturing sector. The survey is conducted quarterly (4 times a year). It is being conducted since 2008.

Features of the Survey

The survey covers 2,500 companies both in public and private sector. The survey also provides ratio of total inventories to sales. Also, the survey provides ratio of raw materials to finished goods. It helps to measure economic activity in the country.

Data Collected in the Survey

The data collected in the survey includes quantitative data, pending orders, work in progress, backlog of orders and finished goods. The data is provided item-wise.

SAFE Scheme: SIDBI provides working capital of Rs 1 crore to MSME

On April 8, 2020, the Small Industries Development Bank of India announced that it will provide emergency working capital of Rs 1 crore to small and medium enterprises.

SAFE Scheme

The SIDBI launched SAFE scheme on March 26, 2020. The SAFE scheme is SIDBI Assistance to Facilitate Emergency Response against Corona Virus. It is financial assistance programme for small and medium enterprises that are engaged in manufacturing. Under the scheme, the MSEs that are involved in manufacturing masks, hand sanitizers, head gears, gloves, body suits, ventilators, shoe-covers and goggles shall avail loan up to Rs 50 lakhs. This will help in addressing shortage issues of Personal Protective Equipment (PPE) in the country.

About the new initiative

Under the scheme, the SIDBI is to provide emergency working capital up to Rs 1 crore. This is being done as SAFE Plus initiative. The initiative is offered collateral free and will be disbursed in 48 hours.