Rs 1,416 crore relief package for pandemic-hit MSMEs in Kerala

Thiruvananthapuram: The Kerala government has announced a Rs 1,416 crore relief package for micro, small and medium enterprises (MSMEs) to help them overcome the crisis caused by the second wave of COVID-19.

The aid could be availed between July and December, Industries Minister P Rajeev announced at a webinar the Department of Industries hosted as part of the World MSME Day. The minister said Rs 139 crore of the budgetary allocation would be utilised for subsidizing the interest on loans and to provide relief.

The government also extended till December 31, 2021, the benefits of the industrial safety scheme, 'Vyavasaya Bhadratha', for those who had secured bank loans.

All MSME units would be provided 50% of the interest on bank loans, up to a maximum subvention of Rs 1,20,000, a year. As many as 5,000 entrepreneurs would benefit from the package worth Rs 400 crore.

Announcing the government's plan to increase the financial assistance under the entrepreneur support scheme, Rajeev said the subsidy for eligible units has been hiked to Rs 30 lakh from Rs 20 lakh.

The subsidy for priority industries in backward districts have been increased to Rs 40 lakh from Rs 30 lakh. As many as 3,000 units would benefit from the increase.

The government's Rs 445 crore-worth scheme would provide up to 25% assistance for entrepreneurs from among women, youth, scheduled classes and non-resident Keralites.

A subsidy of up to Rs 45% would be provided to priority industrial initiatives such as rubber, agriculture, food processing, cloth manufacturing, non-conventional energy generation, equipment manufacturers as well as bio-technology, plastic waste recycling and organic-pesticide units. The assistance, however, would not exceed Rs 40 lakh.

Entrepreneurs in industrially backward districts such as Idukki, Wayanad, Kasaragod and Pathanamthitta, too, would be provided a subsidy of 45%.

Rs 60 crore for nano units

The government has announced a financial assistance of Rs 60 crore for nano industrial units. As many as 600 units would benefit from the scheme.

The subsidy on loan interest for nano units with a capital investment of up to Rs 5 lakh has been expanded to include those in the service sector with an investment of up to Rs 10 lakh.

Relief for defaulters

The government has also decided to restructure Rs 179 crore loan from the Kerala State Industrial Development Corporation (KSIDC). Accounts that have defaulted in repaying KSIDC loans due to the pandemic-induced crisis would not be recorded as 'bad debts.'

The moratorium on KSIDC loans has been extended to this month also, besides dropping three months’ interest. The government would shoulder the Rs 66 lakh liability of dropping the interest.

The KSIDC's penalty annual percentage rate (penalty interest) for a year, too, has been written off for the current financial year. An amount of Rs 100 crore would be utilized to provide 5% the interest on loans availed by 150 MSME entrepreneurs.

Low-interest loans, at 5% interest, would be made available to non-resident Keralites returning to the State.

KSIDC announces Rs 100 crore for health sector

KSIDC has announced special loan packages for industries in COVID-related health sector. Loans worth Rs 100 would be sanctioned to entrepreneurs at 5% interest.

The beneficiaries of KINFRA’s standard design factories need not pay the common facility charge and rent for three months from April. The one-time settlement scheme on loans would continue till December 31.

The down payment of the value of land provided for industrial purposes could be made in instalments. Only 20% of the total value needed to be paid, and the remaining 80% could be remitted in five equal interest-free instalments.

The value of land at KINFRA's industrial parks would be fixed at 2020 price, and those allotted land could procure them by making a down payment of 20% of the total value. The remaining down payment could be made in five annual interest-free instalments, the minister said.