Almost one month after Union Finance Minister Nirmala Sitharaman announced the revival package for stressed micro, small and medium enterprises, the scheme is yet to see the light of the day.
The scheme, which was to provide ?20,000 crore equity support to stressed and NPA MSMEs, was approved by the Union Cabinet on June 1.
According to the scheme, the banks were expected to provide subordinate-debt to promoters of stressed MSMEs, upto 15% of their existing stake in the unit subject to a maximum of ?75 lakh. This would have helped two lakh stressed MSMEs. However, the scheme is yet to take off as the Reserve Bank of India (RBI) is yet to issue the guidelines for the scheme.
MSME players said the move to revive the units through the subordinate debt scheme was an unique one and was a much needed measure.
“This is a much needed great move as firms that are revivable but currently NPA were hoping that the measure will be speedily implemented which would have increased the chance of revival drastically,” said the promoter of a mid-sized enterprise.
“As an additional measure, as not all banks may have appetite for this scheme, portability of such accounts to banks that have the appetite would ensure greater impact and help off-court resolutions,” the promoter said.