MSME Current Affairs - 2020

KVIC taps Indian Palm Industry

The Khadi and Village Industries Commission is to roll out a project to produce Palamgur and Neera. The initiative is to generate huge employment.

Highlights

Neera is to be introduced as a substitute for soft drinks. This will create self employment opportunities to tribal. It was first launched in Maharashtra where there are more than 50 lakh palm trees.

About the initiative

The KVIC distributed tools for making Palmgur and to extract Neera. The tools included axes, ropes and knives. The KVIC also provided a 7-day training programme to the local artisans. The initiative has been rolled out by the Ministry of MSME (Micro, small and Medium Enterprises).

Background

Neera is extracted from the palm trees before sun rise. There are more than 10 crore palm trees in the country. However, due to lack of commercial market techniques, large scale Neera production has not commenced in the country.

Neera also has great export potential. Neera is consumed widely in countries such as Indonesia, Thailand, Malaysia, Myanmar, Africa and Sri Lanka.

Rs 14,690 Crore disbursed under Emergency Credit Line Guarantee Scheme

On June 12, 2020, the Ministry of Finance announced that the public sector banks have so far disbursed Rs 14,690 crores for the MSMEs under the Emergency Credit Line Guarantee Scheme (ECLGS).

Highlights

The credit line of ECLGS is the biggest component of the economic package announced by the Finance Minister under Atma Nirbhar Bharat Abhiyan. The Finance Minister announced that Rs 29,490 crores of loans has been sanctioned to MSMEs. Out of this, Rs 14,690 crores has been disbursed.

Benefits

The Cabinet in May 2020, had approved additional funding of Rs 3 lakh crores through ECLGS at a concessional rate of 9.25% for the MSME sector. This will help to cover MUDRA borrowers broadly.

The main aim of GoI to focus on ECLGS is to provide incentive to the lending institutions, enable availability of funding to the MSME borrowers and to increase the access of funding facilities to the MSMEs.

Impacts of the Scheme

The scheme is expected to mitigate stress caused by COVID-19 that has severely impacted manufacturing sector and other activities of MSME. It is expected to provide credit facilities at low cost and thereby help the MSMEs restart their business and meet their operational liabilities. The scheme is expected to have positive impact on the economy and also support its revival.