Yediyurappa lauds Centre's financial aid to Industrial sector that 'benefits 45 lakh MSME'

Karnataka Chief Minister BS Yediyurappa on Wednesday, welcomed the Centre’s financial aid for the industrial sector stating that Rs 3 lakh crore collateral-free loans would benefit 45 lakh micro, small and medium enterprises (MSMEs) and thousands of their employees across the country.

Praising Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for the economic stimulus package to the manufacturing and services sectors, Yediyurappa said Rs 90,000 crore funds to the electricity distribution companies would help them and hundreds of their employees who incurred losses over the years. The package is crucial as this sector contributes to 75 to 80 percent of the national GDP (gross domestic product) growth.

The Chief Minister further said that financial aid of Rs 30,000 crores to non-banking financial companies (NBFCs), income-tax exemption and refund of Rs 50,000 crore to non-salaried employees and Rs 6,750-crore contribution to the Employees Provident Fund (EPF) and entrepreneurs will benefit the companies and their employees affected due to the lockdown.

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India’s ‘bold step’ to revive the Industrial sector

Stating that no COVID-affected country in the world has announced such a ‘huge’ revival package for the Industrial sector, Yediyurappa said the Centre has taken a bold step for motivating people to resume work amid COVID-19 crisis.

In her briefing, the Union finance minister had also said that no country in the world has funded projects worth Rs 200 crore to stimulate growth and help the MSMEs in all its states.

Unveiling the first tranche of a massive stimulus package pledged by the Narendra Modi government to rescue the Indian economy from the devastating fallout of the Coronavirus pandemic, Finance Minister Nirmala Sitharaman on Wednesday announced a Rs 3 lakh crore collateral-free automatic loan schemes for Micro, Small and Medium Enterprises along with five other major boosters aimed to revive the sector most hit with economic woes.

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(Image credits: PTI File photo)