Recently, the Ministry of Micro, Small, and Medium Enterprises (MSMEs) has announced the Extension of the Deadline for Sub-Debt Scheme for MSMEs. As the announcement came over to extend the Credit Guarantee Scheme for Subordinate Debt (CGSSD) till 30th September of 2021, BHEL Small Industries Centre has expressed relief.
Why Extension in Date?
As this announcement came in earlier this month, the Central Government also informed that the scheme has been extended for six months. Well, this extension came to keep avenues of assistance open for stressed MSME units from INR 20000 crore subordinate debt-funds.
However, the scheme was to remain in operation till March 31, as the Distressed Assets Fund had been created during May month of 2020 under the Atma-Nirbhar Bharat Scheme Package.
Solutions for Stressed MSMEs!
As the COVID pandemic caused a crisis that enabled stress among MSMEs. And, to tide over this stress, BHELSIA approached the Union Finance Ministry, in December month of last year, to modify the subordinate debt scheme.
However, for the Tiruchi MSME engineering cluster, the subordinate debt scheme was not of utility to stressed units and subsequently, the MSME had also sounded about the issue earlier.
Further Notification by MSME
As the ancillary industries are struggling with the impact of the rise in the price of steel, the Extension of the Deadline for the Sub-Debt Scheme for MSMEs or CGSSD came at a very crucial time.
Officials adding to his statement said that extension in the deadline for coal-fired power plants to lower Sulphur-Dioxide (SO2) emissions by the government from the centre is a welcome decision.
As per the order issued on April 1 from the Ministry of Environment, Forests and Climate Change, the ministry pushed the deadline for thermal electricity.
As the utilities were not able to take to the technology due to the huge costs, the latest deadline kept till December 2022 as the previous deadline was of December 2017. However, they have been given varying time frames for compliance.
What New Order Directs?
The deadline has been set to 2024 as per the new order for those plants which is in a less populated area. And, those plants that will retire soon, the deadline for them is till December 2025, even if they are situated in heavily populated areas.
Well, most of them are about to retire plants owned by State Governments and, this 3-year extension in deadline will give a push to chemical industries, adding to the statement.
Download E-Startup Mobile App and Never miss the freshest updates relating to your business.