The Telangana government will provide 100 per cent loan repayment guarantee to banks for creating a support system for the MSME sector. The scheme is still in the concept phase and will have a corpus on the lines of women’s SHGs that can be used for repayment in case of a unit defaulting.
Also an exclusive State Level Bankers Committee for the SME sector will be constituted by the government to provide funding to the sector, said TSIIC chairman Jayesh Ranjan. He was speaking at a meet on ‘Funding MSMEs to Stimulate Growth’.
“Many measures to support SMEs have been taken. Now we have 2.5 lakh acres which will be converted into industrial parks. The MSMEs will have assured availability of plots as there is reservation of plots.
Telangana will have a new industrial policy from Dec. 1, which speaks about a separate empowered State Level Bankers’ Committee exclusively for SMEs. Financing of niche areas is being explored and we will shortly launch a scheme to generate funding with the government taking responsibility for loan repayment,” said the official.
For providing 100 per cent loan guarantee the government plans to withhold a part of the subsidy amount extended to the unit to be used for the corpus fund. Meanwhile, representatives from the sector highlighted the funds problem faced by the sector, especially when they are already in a bad shape.
Source: Deccan Chronicle