Every registered MSME could also be eligible for 20 per cent further mortgage, sources say.
New Delhi:
The authorities might pay three-month salaries of workers of small and medium companies hit by coronavirus and weeks of lockdown, sources stated on Wednesday. It additionally plans to ensure as much as Rs Three lakh crore of loans to MSMEs or Micro, Small and Medium Enterprises to assist them tide over the virus disaster.
On Tuesday, PM Modi introduced Rs 20 lakh crore – equal to 10 per cent of India’s GDP — in fiscal and financial measures to restart an financial system battered by the 50-day shutdown of industries and different financial actions to make sure social distancing and forestall the unfold of COVID-19.
Sources stated the April-June wages of workers of MSMEs could also be paid from the Employee State Insurance Corporation, a self-financing medical health insurance scheme beneath the federal government that’s obligatory for workers incomes as much as Rs 21,000 rupees a month.
The authorities can also pay the staff’ share of provident fund for these within the MSME sector who draw as much as Rs 30,000 a month. The restrict is at the moment Rs 15,000. This will value the federal government an extra Rs 5,000 crore.
Confirmed particulars will probably be out there solely when Finance Minister Nirmala Sitharaman addresses the media at four pm at present to share particulars of the large bundle introduced by the Prime Minister.
A one-year moratorium on mortgage reimbursement for MSMEs can also be one of many proposals being thought of.
Small companies could also be eligible to borrow an extra 20% of their credit score restrict, sources stated.
The authorities can also assist small and medium industries in loans by paying a share of the curiosity or having the mortgage restructured.
Small companies have been the worst hit by the lockdown with their exercise coming to a halt. Some 10 crore employees in mining, building, manufacturing and companies sectors have been left jobless as a result of lockdown, in line with varied experiences.
Hundreds of hundreds of cash-starved small companies have both deferred or reduce their employees’ wages this month, say industrialists and union leaders. The All India Manufacturers Organisation (AIMO)- an business physique representing some 100,000 small producers – stated final month that greater than two-thirds of its members confronted issues in paying salaries.
Several states had written to the federal government to permit using funds collected beneath the worker state insurance coverage funds to cowl wages or not less than part of it for the lockdown interval.
The ESIC funds, which have Rs 31,000 crore at current, provide compensation within the type of money as much as three months of unemployment.
