Kerala Govt announces Rs 1416cr package to support MSMEs amid pandemic
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Thiruvananthapuram: On world Micro, Small and Medium-sized Enterprises (MSMEs) Day on Sunday, Kerala Government has announced a package of Rs 1416 crore amid the COVID-19 pandemic-induced crisis.
P Rajeev, Minister for Industries and Law, said that the scheme could benefit those enterprises that are struggling due to the restrictions caused by the COVID pandemic. The scheme would also help struggling enterprises stand back on their feet, he added.
The support includes 50% interest for loans taken by MSMEs and increasing subsidy support for new enterprises from Rs 20 lakh to Rs 30 lakh. The subsidy would be increased to Rs 40 lakh for enterprises in the industrially backward districts of Kasaragod, Wayanad and Pathanamthitta,
More relief in interest rates and in rentals are to be provided for industries that function under the Kerala Industrial Infrastructure Development Corporation (KINFRA) and Kerala State Industrial Development Corporation (KSIDC).
The scheme which will be made available from July to December 2021, also has major loan schemes to help revive the MSMEs.In the first phase, the KSIIDC will provide loans worth Rs 100 crore at a 5% interest rate for 150 new entrepreneurs.
Meanwhile, MSME Day is celebrated every year on June 27 to recognise the contribution of MSME industries in the implementation of the Sustainable Development Goals (SDGs).