Covid-19 relief package for MSMEs needs to be revamped

by Nidhi Bhati

The package of measures announced to help the micro, small and medium enterprises (MSMEs) in 2020 to overcome the challenges posed due to the Covid-19 pandemic has made a little headway, reported Business Standard. As part of the Covid relief package, the government had announced Rs.200 billion Subordinate debt scheme, Rs.3 trillion collateral-free automatic loans or Emergency Credit Line Guarantee Scheme and also offered to build a Rs.500 billion Fund of Funds to invest in the sector. Throughout 2020, the MSME ministry has held discussions with several fund houses. However, not even one financial institution showed any interest to give it a shot. Experts have suggested the government to revamp all these schemes and focus more on increasing cash flow for the sector along with setting up a regular.