Nitin Gadkari Current Affairs - 2020

Scheme with Guarantee Cover worth Rs 20,000 Crore launched for MSMEs

This scheme was announced as a part of the AtmaNirbhar Bharat Package by Finance Minister back on 13th May 2020. On 24th June 2020, the Credit Guarantee Scheme for Sub-ordinate Debt (CGSSD) was launched. The scheme is also called as Distressed Assets Fund- Sub- Ordinate Debt for MSMEs.

Union Minister of Medium, Small and Marginal Enterprises (MSMEs) Nitin Gadkari launched the scheme. After consultation with the Reserve Bank of India, SIDBI, and the Ministry of Finance, the scheme was approved by the Committee on Economic Affairs.

Background

As a result of nationwide lockdown to contain the spread of COVID-19, most of the economic activities came to a halt across the globe. In India as well, the livelihood of millions of people is dependent on the MSME sector.

As per data available to the Government, the biggest challenge that was faced by these MSMEs was in getting capital for restarting their businesses.

About the Scheme

The scheme will provide support to about 2 lakh MSMEs across the country. Rs 20,000 crores of guarantee cover have been sanctioned under the scheme.

The guarantee cover under the scheme will be provided from banks to the promoters. Only those promoters, who’s MSMEs have either become a Non-Performing Asset (NPA) or are financially stressed as on 30th April 2020 will be eligible for the scheme.

Through Credit Guarantee Fund Trust for Mirco and Small Enterprises (MSEs), the scheme will be implemented.

MSME Minister launches ‘Khadi Rumal’ stitched by militancy affected women of J&K

Union Minister for Micro, Small and Medium Enterprises (MSME) Nitin Gadkari launched the sale of ‘Khadi Rumal’ stitched by militancy affected women of Nagrota town of Jammu and Kashmir. The aim is to provide employment to the women in the terrorist affected areas as  well as create employment opportunities for militancy affected families of J&K.

Key Highlights

Iin 2016, Khadi and Village Industries Commission (KVIC) started a napkin stitching centre at Nagrota for the families of militancy-affected areas in Valley, with a view that if people living in rural areas are provided job opportunities then they would not need leave their homes in search of jobs.

In the initial phase a ‘Rumal’ costs Rs.50, and the plan is to do production of 5 crores such Rumals. Currently, the turnover of village industries in India is Rs.75000 crore and by March 2020, the aim is to increase this turover by Rs.1,00,000 crore.

At the event, Khadi and Village Industries Commission (KVIC) also signed an agreement with Paytm to facilitate the sale of 2 crore pieces of Rumals through their portal. MSME Ministry also annnouced 50% increase in remuneration of women workers to Rs 3 per piece from Rs 2 per piece presently.