Money & Banking

Govt guarantee on credit to MSMEs addresses banks’ hesitation, says FM

Our Bureau New Delhi | Updated on May 20, 2020 Published on May 20, 2020

Finance Minister Niramla Sitharaman is hopeful that the government guarantee on additional working capital loan to Micro, Small and Medium Enterprises (MSME) will facilitate enhanced lending by banks. She has also asked industry to re-skill workers to equip them for the post-Covid regime.

“Full and partial guarantees provided by the government through a special purpose vehicle would address bank hesitation,” she said during her engagement with members of CII here on Wednesday.

She asked industry to reset its relations with workers and plan for labour, including unskilled labour. She advised industry to consider in a professional manner the terms for engaging unskilled workers and work towards skilling employees at all levels. “Industry needs to set examples in handling workers in a way that is acceptable to all,” the Minister stated.

Responding to a question on agriculture, the Finance Minister said comprehensive reforms have been announced. Three model Acts have been shared with state governments. She said many states had commenced work on land reforms.

The National Infrastructure Pipeline will be given a push in order to create demand with a multiplier effect. “Large projects will be front-loaded and this will bring in positive energy and sentiment,” said Sitharaman, while noting that there has been a fair and open interaction on GST, which had dropped to the bottom quarter in inflows. Discussions on the same were underway.

Concerns that large industry, too, was facing a lot of stress, particularly in certain sectors such as tourism, automotive and aviation, were also discussed. Discussions need to be undertaken to protect jobs, increase demand, and ensure survival of large businesses, industry requested.

Published on May 20, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.