04 June Sunday

Big Boost : State Govt Announces Rs. 3,434 cr Package For Up To Medium Scale Enterprises; Interest Exempted On Additional Loans

Web Desk(Tvm)Updated: Friday May 15, 2020


Thiruvananthapuram : The state government on Thursday announced a Rs 3434 crore special package to help small and medium scale businesses tide over Covid-triggered financial crisis. The aid package, aimed to revive micro, small and medium enterprises(MSMEs) in the state will be implemented  immediately, said Chief Minister Pinarayi Vijayan.


The package, titled “Vyavasaya Bhadratha”, was approved at the cabinet meeting held Wednesday. The Industries Department will implement the package under which, existing business units up to medium scale, will be offered interest-free additional loans, margin money assistance and one-time settlement for arrears.


Vyavasaya Bhadratha aims to ramp up  investment space in  the state amid Covid-19 pandemic and unprecedented lockdown conditions, said CM at the meeting.


Key Highlights :


ð KSIDC and KINFRA will offer one-time settlement on loan arrears.


ð There would be a six-month moratorium on loans availed by enterprises within medium scale.


ð Design Factory units under Industries Department will be exempted from rent for 3 months.


ð Charges for common amenities at business parks will be waived for 3 months.


ð Special capital loans for micro,  small and medium enterprises.


ð Enterprises with borrowings from KSIDC  will be allowed additional loans toward their working capital and reserve fund.


ð A 3-month moratorium on all operating units under KSIDC .


ð A 6-month waiver on penalties for KSIDC loans.


ð KSIDC loans from above Rs 50 lakhs permitted for MSMEs. Only loans above Rs 1 crore were allowed up to now.


ð Enterprises operating on space availed at KSIDC and KINFRA parks to  be allowed extended repayment time. Also advance deposit amounts would be lowered.


ð The package will roll out  special entrepreneurial schemes for women, youth  scheduled caste units. They will be provided 25 percent margin money assistance.