Covid-19 has rubbed salt over the wounds of Micro, Small and Medium Enterprises (MSMEs), which were already reeling under the impact of economic slowdown.
This is helping Tamil Nadu gain economically as a large number goods is being exported from there.
As part of this partnership, BSE will provide intellectual and manpower support to create awareness about the importance of listing.
A majority of MSMEs have a history of unpaid loans and there is a need to promote financial literacy in this sector, said K Elangovan, principal secretary, Kerala Industries.
On May 20, the Cabinet approved additional funding of up to Rs 3 lakh crore at a concessional rate of 9.25 per cent through ECLGS for MSME sector.
The president of IEMA, KV Kanakambaram, said: “Many MSME units in Tamil Nadu are facing grave challenges. Some of them were even shut down due to the Covid crisis.
The loan amounts sanctioned by PSBs increased to Rs 81,648.82 crore, of which Rs 68,814.43 crore has been disbursed as of October 5, Sitharaman said.
As per the conditions of the subvention scheme, loan accounts on the date of filing the claim should not have been declared as a non-performing asset (NPAs).
Majority of these firms yet to touch half of pre-pandemic level sales
An affidavit to the Supreme Court said that the only solution is that the government should bear the burden resulting from waiver of compound interest.
While sharing the progress of implementation of various other schemes under Aatmanirbhar Bharat Abhiyan package, it said banks have approved the purchase of portfolio of Rs 25,505 crore.
VK Girish Pandian, president of National Confederation of Small Industry, said the MSMEs are facing a huge challenge with the six-month moratorium ending in August.
According to sources in the ministry of MSMEs, data which was used to address the Covid-induced problems was largely from 2013.
'Around Rs 10,000 crore has been paid by CPSEs,' the MSME ministry said, while urging states to clear payments pronto.
With several units shut and thousands of jobs lost, the transformation was drastic. In some cases, employers became employees.