The Union Cabinet on Wednesday gave ex-post facto approval for a larger package supporting small and medium enterprises — a promise made by Prime Minister Narendra Modi in his New Year’s eve address to the nation.
The Corpus of Credit Guarantee Trust Fund for Micro and Small Enterprises will increase from ₹2,500 crore to ₹7,500 crore. The Centre has increased the coverage of loans covered under the credit guarantee scheme to ₹2 crore from ₹1 crore.
“As per the Prime Minister’s announcement on December 31 for micro and small enterprises, the Cabinet has approved an enhancement in the Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE), which has a corpus of ₹2,500 crore.
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The government will put another ₹5,000 crore to make it ₹7,500 crore and the intent is to extend the credit guarantee scheme, just as the Prime Minister had announced, to allow guarantees up to ₹2 crore instead of the present ₹1 crore,” Finance Minister Arun Jaitley told the media here.