Well, you might be aware of the whooping 20 lakh crores scheme of Atma Nirbhar Bharat issued by the Government of India, but everyone is still wondering what’s there in the box for them, Kya 20 LAKH CRORES mein se 20 rupee bhi humein mil rhe hai…??? Still a thought. Under this scheme, only 30% has been reserved for Business and MSMEs i.e. 5.94 lakh crores wherein a branded package has been designed to calm down the Opposing public rather than soothing the distressed. Earlier definition of MSME, believed to kill MSMEs urge to grow, as they feared, with expansion they may lose the benefits, but with revision in favor of MSME, major criterion being Investment allowed upto 50 crores and turnover upto 250 crores, important element of Employment has still been left out, which is considered crucial globally.

Here, Over-hyped scheme of ECGLS (Emergency Credit Line Guarantee Scheme) worth Rs 3 lakh Crores, wherein up to 20 per cent of the outstanding credit shall be provided if Business/ MSME/ Traders have annual turnover of up to Rs 100 crore and having outstanding credit of up to Rs 25 crore as on 29 February 2020. This has been the major pillar of attraction, since Government claims to provide Risk-Free, Collateral Free loan with 100% guarantee, which is a big perjury, self stated by the Government only, under the Operational guidelines issued by them or you can just check our recent video (https://www.youtube.com/watch?v=6Ucp1Q9OFrg) highlighting the plight. Other scheme include Rs 20,000 crore Subordinate Debt for MSMEs, wherein partial guarantee is being offered, whether 50% or 20%, is not clear. Here, Promoters, of the company will be provided with Loan, which will be issued through equity. Will this lead to change in ownership of MSMEs in the hands of our Sarkar? Another offer which might boost our start ups, with Rs 50,000 cr. Equity infusion for MSMEs through Fund of Funds, wherein companies with high credit worthiness and good record of compliances like GST, Income Tax will be weighed and preferred. Well, we can keep guessing, as the Operational guidelines are still not issued for both the schemes.

Then other assistance, in the form of disallowing Global tenders up to 200 crores, E-market linkages, EPF Support, and boosting NBFC/ MFIs/ HFCs by providing more liquidity facility and Partial Guarantee Scheme, delay in filing of Tax returns/ TDS /TCS deduction have been other offers under this magnum scheme. As they say, “Everything thing that GLITTERS is not GOLD, similar looks this COVID package. Even after going through the benefits, if we fit ourselves in some suitable category, this might look like an easy piece of cake waiting to be grabbed and gobble, is a false assumption, it’s a game of “Office- office” as played commonly in our so-called transparent, bureaucratic system. If you are planning to get benefits under any scheme, the list of documents is not only huge but out of the syllabus as well and yes, cooperation from Banking staff is again a check on your nerve of patience. So, what next?? Again a policy or scheme claiming betterment of all, but only privileged are getting the opportunity, and under privileged remain knocking at the door. The need of the moment, is to issue Operational Guidelines for all the schemes, rather than claiming to be return gifts for all the affected sectors of the pandemic. And can we have an MSME Ombudsman or MSME Body, to ensure transparency in scheme disbursement and further boost the sector, remains a food for thought.

– By Ritika Agarwal
Founder, Green Growth Consultancy