27-Apr-2023: Shri Narayan Rane launches the revamped CGTMSE Scheme
Union Minister for MSME Shri Narayan Rane launched the revamped CGTMSE Scheme in Mumbai today. CGTMSE has been provided with an additional corpus support of ₹9,000 crore in the Union Budget for FY 2023-24 to revamp its Scheme to provide guarantee for additional ₹2 lakh crore to Micro & Small Enterprises. Accordingly, the major revamp measures were launched and disseminated to the lending institutions. The modifications included reduction in guarantee fees for loans upto ₹1 crore by 50% bringing the minimum guarantee fee to the level of 0.37% pa only. Another major change announced was raising of ceiling for guarantee from ₹2 crore to ₹ 5 crore and enhancing the threshold limit for claim settlement without initiation of legal action to ₹10 lakh.
While launching the revamp measures Shri Narayan Rane impressed upon the lending institutions to make best use of liberalisation to ensure enhanced lending to the MSE Segment without insisting for collateral. He expressed confidence that such measures would enthuse bankers to reduce their dependence on availability of collateral security which continues to be a problem for MSEs, especially the first generation entrepreneurs.
Speaking on the occasion, Secretary ,Shri B B Swain apprised that CGTMSE was also collaborating with various State Governments for enhanced guarantee coverage for MSEs in respective States. He exuded confidence that all policy level modifications, along with other initiatives being taken by CGTMSE, would result in greater utilisation of guarantee mechanism.
Shri S Ramann, Chairman and Managing Director, SIDBI (who is also the Chairman of CGTMSE) said that CGTMSE has been taking various initiatives which aims at boosting credit flow to MSEs by making the guarantee Scheme attractive for both MSEs as well as for the lenders. He also indicated that CGTMSE would come out with more schemes and assured the lenders that it would always be nimble footed in responding to their requirements.
Banks which had best utilised the guarantee Scheme were felicitated by the Union Minister. Senior executives of banks and NBFCs appreciated the changes being brought in the Scheme and expressed confidence that these measures will go a long way in facilitating collateral free lending to MSEs in the country and thus to create employment in a big way.
During the function it was announced that CGTMSE will collaborate with National Institute for Micro, Small and Medium Enterprises (ni-msme), Hyderabad for setting up a Centre of Financial Inclusion for MSME.
6-Apr-2023: Urban Infrastructure Development Fund (UIDF)
Union Budget 2023-24 has announced the setting up of the Urban Infrastructure Development Fund (UIDF) through use of priority sector lending shortfall. Rs. 10,000 crore per annum will be made available for this purpose. The Fund will be managed by the National Housing Bank, and will be used by public agencies to create urban infrastructure in Tier 2 and Tier 3 cities on the basis of given guidelines.
As per the Budget announcement, States will be encouraged to leverage resources from the grants of the 15th Finance Commission, as well as existing schemes, to adopt appropriate user charges while accessing the UIDF. The Fund would be operationalised broadly along the lines of the existing Rural Infrastructure Development Fund.
24-Mar-2023: Agriculture Accelerator Fund
The Government of India, Department of Agriculture & Farmers’ Welfare (DA&FW) is committed to the welfare of the farmers. It includes modernizing the agricultural systems by incorporating new and innovative solutions brought by the agri-entrepreneurs. Accordingly DA&FW is implementing “Innovation and Agri-Entrepreneurship Development” programme under Rashtriya Krishi Vikas Yojana (RKVY) from 2018-19 with an objective to promote innovation and agri-entrepreneurship by providing financial support and nurturing an incubation ecosystem in the country.
This Department has appointed five Knowledge Partners (KPs) and twenty four RKVY Agribusiness Incubators (R-ABIs) have been appointed from across the country for incubation of startups and implementation of this programme. Under the programme, the financial support is provided to entrepreneurs in the field of agriculture & allied sector to set up their startups. For this, a financial support of Rs. 5.00 lakh is provided at the idea/pre seed stage and Rs. 25 lakh at the seed stage.
So far, a total of 1138 agri startups are supported under the programme with financial assistance of Rs. 70.30 crores. The technical and financial assistance are provided to startups to launch their products, services, business platforms, etc. into the market and facilitate them to scale up their products and operations to attain business viability.
Agri-start-ups supported under the programme are at various stage of implementation from idea to scaling and growth stage. These agri-startups are working in different areas of agriculture & allied sectors for improving the farming practices such as precision agriculture, farm mechanization, agri logistics & supply chain, waste to wealth, organic farming, animal husbandry, dairy & fisheries, etc.
Start-ups are trained and incubated at various Knowledge Partners (KPs) and RKVY Agribusiness Incubators (R-ABIs) appointed under the programme. The technologies, products and services developed by these startups are evaluated by KPs and R-ABIs in terms of their utility and impact in agriculture and allied sectors. Besides, KPs and R-ABIs are promoting these startups by linking them with various institutions and organizations for their product & technology validation, market linkages, supply chain management, streamlining the distribution and scaling up of the product and operations, etc. Government of India organize various national level programmes including agri-startup conclave, agri fair and exhibitions, webinars, workshops to serve as a platform for the promotion of agri startups by linking them with various stakeholders. Such programmes act as direct market reach and cater as an effective marketing tool to startups. Stakeholders get a direct opportunity to interact with the agri startups without any intermediaries.