It's been over two and a half months since the government announced a Rs 3 lakh crore credit guarantee scheme to rejuvenate the MSME sector, one of the worst casualties of the COVID-19 pandemic and the subsequent lockdown.
Banks have so far sanctioned almost 46 percent of the amount and have disbursed about 30 percent. Earlier this month, the government even expanded the scope of its loan guarantee scheme to allow more companies to avail of its benefits.
It intends to increase the upper ceiling of the turnover for MSMEs covered under the scheme to Rs 250 crore. But just how many of the 6 crore plus MSMEs will benefit from this scheme, and what do the latest proposed changes mean for the sector?
To discuss this further CS Setty, the Managing Director of SBI, the bank that has single-handled sanctioned 15 percent of the total amount under this scheme and Animesh Saxena, president of Federation of Indian Micro, Small & Medium Enterprises are in conversation with CNBC-TV18.