MSMEs such as Udyam, e-shram, NCS & Aseem portals will be interlinked
They will now perform as portals with live organic databases
A fund with blended capital will be raised under co-investment model
The government announced that MSMEs such as Udyam, e-shram, NCS & Aseem portals will be interlinked, and their scope will be widened. They will now perform as portals with live organic databases providing G-C, B-C & B-B services such as credit facilitation, enhancing entrepreneurial opportunities.
Also, a fund with blended capital will be raised under the co-investment model facilitated through NABARD to finance startups in agriculture & rural enterprises for the farm produce value chain.
The Emergency Credit Line Guarantee Scheme (ECLGS) will be extended up to March 2023, with a guaranteed cover extended by another INR 50,000 Cr. The total cover under scheme will now be INR 5 lakh Cr.
The Emergency Credit Line Guarantee Scheme (ECLGS) was unveiled as part of the INR 20 Lakh Cr comprehensive package announced by the Finance Ministry on 13/05/2020, to aid the Micro, Small and Medium Enterprises (MSMEs) sector in view of the economic distress caused by the COVID-19 pandemic.
It is believed that this step will prove to be an asset for the growing MSME class of the country and will help banks in extended lending to the MSME sector.
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Hardika Shah, Founder and CEO, Kinara Capital said, “Union Budget 2022-23 has presented a comprehensive package of policy announcements aimed at supporting the recovery of MSME. Aside from the critical announcements about the extension of the ECLGS scheme and the revamp of the CGTMSE program, along with the infusion of additional funds, the government’s focus on RAMP is also commendable, as it will define the path to sustainable and responsible development for the sector.”
“We also look forward to the interlinking of MSMEs formalization and compliance platforms, as this stands to facilitate operability, therefore improving entrepreneurial opportunities in the sector. The digital focus of the Budget, with support for the digital ecosystem and payment platforms, also bodes well for small businesses, as we foresee the future of the sector being tech-led,” he added.
The Union budget 2022-2023 is laid out on six key pillars:
- PM Gati Shakti
- Inclusive Development
- Productivity Enhancement
- Sunrise Opportunities
- Energy Transition
- Climate Action