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High rates, low demand: Stressed MSMEs can’t tap into Govt relief -Sunny Verma

-The Indian Express Viable companies, with good credit history, are able to raise funds, but the most needy among the MSMEs are facing a double whammy: slump in demand and lack of finance. Banks have started disbursing funds to Micro, Small and Medium Enterprises under the 100% Emergency Credit Line Guarantee Scheme announced by Finance Minister Nirmala Sitharaman last month but for many firms, hit hard by the pandemic lockdown, credit is...

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How To Enable MSMEs To Recover From The Lockdown -Shreehari Paliath

-IndiaSpend.com Bengaluru: In the aftermath of the COVID-19 epidemic and two months of stringent lockdown, India now faces the crises of unemployment and business closure, particularly in the micro, small and medium enterprise (MSMEs) sector. A new report by the Council on Energy, Environment and Water (CEEW) and the National Institute of Public Finance and Policy (NIPFP) has proposed that MSME recovery can be speeded along by: * Identifying micro, small and...

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The Great MSME Stimulus Muddle -Kulwinder Singh Sethi

-Newsclick.in The Rs 3 lakh crore credit guarantee scheme for micro, Small and Medium Enterprises is unclear, contradictory and practically difficult to implement. The scheme may create more problems than it solves. On May 12, in his televised address to the nation, Prime Minister Narendra Modi announced the Atma Nirbhar Bharat Abhiyan or the “campaign to make India self-reliant,” comprising what was claimed to be a Rs 20 lakh crore package to...

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Can MGNREGA Be Reshaped and Reoriented to Help India's Farmers? -Siraj Hussain and Jugal Mohapatra

-TheWire.in As a fresh spotlight hits India's rural employment programme, two suggestions have been offered to “repurpose” MGNREGA to utilise the additional labour force that have returned to their villages. Due to the sudden lockdown and resultant job losses, over one crore people have returned to their homes, some walking hundreds of kilometres, others using all conceivable means of transport – buses, trucks, trailers, concrete mixers, Shramik trains, motorcycles, scooters, bicycles, auto...

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Is repurposing MGNREGA the right way forward? -Ashwini Kulkarni and Pramathesh Ambasta

-The Indian Express MGNREGA is not the best instrument to help MSMEs in urban and rural areas. Mixing up its objectives can only lead to chaos with no value addition Newspaper reports suggest that a Group of Ministers (GoM) on employment, whose report is not yet available in the public domain, has made draft recommendations including some on MGNREGA. Their suggestions include merging MGNREGA with skill development programmes and using its funds...

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