Team News Riveting
New Delhi, August 16
The industrial and business houses claim to be under severe crises following Covid-19 pandemic, but ironically not even half of the micro, small and medium enterprises (MSME) have availed the financial assistance offered by the government.
Of the Rs 3-lakh-crore committed by the government for Covid-hit MSMEs under the Emergency Credit Line Guarantee Scheme (ECLGS) in May this year, only 32.8 per cent (Rs 98.665.93 crore) could be disbursed. In all, 22,77,463 MSMEs availed the benefit of the scheme as of August 12, according to the data tweeted by the Finance Minister Nirmala Sitharaman’s office.
The ECLGS scheme was part of the Rs 3.7 lakh crore package for MSMEs under the Rs 20 lakh crore economic stimulus announced by Prime Minister Narendra Modi. According to the scheme, 45 lakh units will be able to benefit from resuming business activity and safeguarding jobs for employees.
The government had earlier this month also expanded the scope of the scheme and eligibility criteria to benefit individual entrepreneurs and more number of MSMEs.
A total of 12 public sector banks with a share of 55.4 per cent (Rs 54,677.11 crore) and 24 private banks and 31 non-banking financial companies (NBFCs) with the remaining share of 44.5 per cent (Rs 43,988.82 crore) had made disbursements out of the sanctioned amount of Rs 1,43,318.09 crore.
Moreover, out of the 22.77 lakh MSMEs, which received credit as of August 12, 19,84,310 MSMEs have been disbursed by public lenders while the rest 2,93,153 small businesses were given credit by private sector banks and NBFCs,.
State Bank of India remained the biggest lender disbursing over Rs 16.5k crore as of August 12 followed by nearly Rs 7k crore disbursed by Punjab National Bank, Rs 6.5k crore by Canara Bank, Rs 5.7k crore by Bank of Baroda, and Rs 4.8k crore disbursed by Union Bank of India.
