Center to enhance and accelerate MSME Demonstration Program with an outlay of ₹6,000 crore over 5 years.
The Union Budget for 2022-23 has announced several measures for the Micro, Small and Medium Enterprises (MSME) sector including the extension of the Emergency Credit Line Guarantee Scheme (ECLGS) till March 2023.
Presenting the Union Budget 2022-23 on February 1, Union Finance Minister Nirmala Sitharaman said that ECLGS has provided much needed additional credit to over 130 lakh MSMEs. This helped them to mitigate the adverse impact of COVID-19. Hospitality and related services, especially by micro and small enterprises, were yet to regain their pre-pandemic levels of business.
Keeping these aspects in mind, the government announced to increase the guarantee cover by another ₹50,000 crore, taking the total cover under the scheme to ₹5 lakh crore, with an additional amount specifically earmarked for hospitality and related enterprises. was done.
In addition, the Center said that the Credit Guarantee Trust Scheme for Micro and Small Enterprises will be revamped with necessary funds. This will facilitate additional credit of ₹ 2 lakh crore for micro and small enterprises and will expand employment opportunities.
To help the MSME sector become more resilient, competitive and efficient, the Center will launch a program to enhance and accelerate MSME Performance (RAMP) with an outlay of Rs 6,000 crore over 5 years.
The budget document also said that in order to provide relief to MSME secondary steel producers, the customs duty exemption granted to steel scrap last year is being extended for one more year.
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