{"id":9606,"date":"2020-08-24T17:45:21","date_gmt":"2020-08-24T12:15:21","guid":{"rendered":"https:\/\/triumphias.com\/blog\/?p=9606"},"modified":"2020-08-24T17:45:21","modified_gmt":"2020-08-24T12:15:21","slug":"distressed-assets-fund-sub-ordinate-debt-for-msmes-scheme","status":"publish","type":"post","link":"https:\/\/triumphias.com\/blog\/distressed-assets-fund-sub-ordinate-debt-for-msmes-scheme\/","title":{"rendered":"Distressed Assets Fund\u2013Sub-ordinate Debt for MSMEs Scheme"},"content":{"rendered":"<header class=\"entry-header\">\n<h1 class=\"entry-title\"><span style=\"color: #0000ff;\">Relevance: Prelims: Indian Economy<\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/pbs.twimg.com\/media\/EZ0txaTUcAADxsF.jpg:large\" alt=\"Ministry of MSME on Twitter: &quot;Distressed Assets Fund-Subordinate Debt Scheme  for MSMEs #MSMEs can do business ...\" \/><\/p>\n<\/header>\n<div class=\"entry-content\">\n<p><span style=\"color: #ff0000;\"><b>Why In News?<\/b><\/span><\/p>\n<p>Recently, the Minister of MSME launched the\u00a0<strong>Credit Guarantee Scheme for Subordinate Debt (CGSSD)<\/strong>\u00a0which is also called\u00a0<strong>\u201cDistressed Assets Fund\u2013Sub-ordinate Debt for MSMEs\u201d<\/strong>.<\/p>\n<h4><span style=\"color: #ff0000;\"><b>Background:\u00a0<\/b><\/span><\/h4>\n<ul>\n<li>This scheme was announced as a part of the AtmaNirbhar Bharat Abhiyan package by the\u00a0 Finance Minister.<\/li>\n<li>After consultation with the Reserve Bank of India, SIDBI, and the Ministry of Finance, the scheme was approved by the Committee on Economic Affairs to boost the MSME sector which was worst hit due to restrictions imposed due to COVID-19.<\/li>\n<\/ul>\n<h4><span style=\"color: #ff0000;\"><b>Highlights of the scheme:<\/b><\/span><\/h4>\n<p><img decoding=\"async\" src=\"https:\/\/i.ytimg.com\/vi\/pqWSELxTavs\/maxresdefault.jpg\" alt=\"\u0905\u092c LOAN \u092e\u093f\u0932\u0947\u0917\u093e NPA MSMEs \u0915\u094b \u092d\u0940 | Subordinate Debt for Stressed MSMEs -  YouTube\" \/><\/p>\n<ul>\n<li>The scheme intends to<strong>\u00a0support about 2 lakh MSMEs with a\u00a0 guarantee cover worth Rs. 20,000 crores<\/strong>\u00a0which will be provided to the promoters who can take debt from the banks to further invest in their stressed MSMEs as equity.<\/li>\n<li>This Scheme seeks to\u00a0<strong>extend support to the promoter(s) of the operational MSMEs<\/strong> which are stressed and have become NPA.<\/li>\n<li>Promoter(s) of the MSMEs will be given credit equal to 15% of their stake (equity plus debt) or Rs. 75 lakh whichever is lower.<\/li>\n<li>Promoter(s) in turn will infuse this amount in the MSME unit as equity and thereby<strong>\u00a0enhance the liquidity and maintain debt-equity ratio.\u00a0<\/strong><\/li>\n<li>There will be a<strong>\u00a0moratorium of 7 years on payment of principal<\/strong>\u00a0whereas maximum tenor for repayment will be 10 years.<\/li>\n<li>The scheme will be implemented through the<strong>\u00a0Credit Guarantee Fund Trust for MSEs (CGTMSE).\u00a0<\/strong><\/li>\n<li>Promoter(s) of MSMEs meeting the eligibility criteria may approach any scheduled commercial banks to avail benefit under the scheme.<\/li>\n<\/ul>\n<p><span style=\"color: #ff0000;\"><b>Intended benefits-\u00a0<\/b><\/span><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/secureservercdn.net\/45.40.148.147\/nky.a02.myftpupload.com\/wp-content\/uploads\/2020\/06\/MSME-Covid-Cir-678x381.jpg\" alt=\"Distressed Assets Fund Subordinate Debt Scheme for MSME's \u2013 MSME COUNCIL\" \/><\/p>\n<ul>\n<li>This scheme will\u00a0<strong>provide the required support<\/strong>\u00a0to around 2 lakh MSMEs and will help in reviving the economic activity in and through this sector.<\/li>\n<li>It will help in\u00a0<strong>protecting the livelihoods and jobs of millions of people<\/strong>\u00a0who depend on them.<\/li>\n<\/ul>\n<h4><b>What are Micro, Small and Medium Enterprises (MSMEs)?<\/b><\/h4>\n<p>MSMEs are defined by the criteria of\u00a0<strong>their investment and turnover.<\/strong>\u00a0The new definition of MSMEs are-<\/p>\n<ul>\n<li>A\u00a0<strong>micro-enterprise,<\/strong>\u00a0where the investment in Plant and Machinery or Equipment does not\u00a0exceed one crore rupees and turnover does not exceed five crore rupees.<\/li>\n<li>A<strong>\u00a0small enterprise,<\/strong>\u00a0where the investment in Plant and Machinery or Equipment does not exceed ten crore rupees and turnover does not exceed fifty crore rupees.<\/li>\n<li>A\u00a0<strong>medium enterprise,<\/strong>\u00a0where the investment in Plant and Machinery or Equipment does not exceed fifty crore rupees and turnover does not exceed two hundred and fifty crore rupees.<\/li>\n<\/ul>\n<\/div>\n<p>&nbsp;<\/p>\n<p><span style=\"color: #0000ff;\"><strong>For more such notes, Articles, News &amp; Views Join our Telegram Channel.<\/strong><\/span><\/p>\n<p><a title=\"Telegram Link\" href=\"https:\/\/t.me\/triumphias\" target=\"_blank\"><span style=\"color: #ff0000;\"><strong>https:\/\/t.me\/triumphias<\/strong><\/span><\/a><\/p>\n<p><span style=\"color: #0000ff;\"><strong>Click the link below to see the details about the UPSC \u2013Civils courses offered by Triumph IAS.<\/strong><\/span> <span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" title=\"Courses available\" href=\"https:\/\/triumphias.com\/pages-all-courses.php\">https:\/\/triumphias.com\/pages-all-courses.php<\/a><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Relevance: Prelims: Indian Economy Why In News? Recently, the Minister of MSME launched the\u00a0Credit Guarantee Scheme for Subordinate Debt (CGSSD)\u00a0which<\/p>\n","protected":false},"author":1,"featured_media":6714,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[123,42,43],"tags":[392],"class_list":["post-9606","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","category-general-studies-iii-technology-economic-development-bio-diversity-environment-security-and-disaster-management","category-indian-economy","tag-union-public-service-commission-upsc"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/9606","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/comments?post=9606"}],"version-history":[{"count":1,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/9606\/revisions"}],"predecessor-version":[{"id":9607,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/posts\/9606\/revisions\/9607"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media\/6714"}],"wp:attachment":[{"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/media?parent=9606"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/categories?post=9606"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/triumphias.com\/blog\/wp-json\/wp\/v2\/tags?post=9606"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}