The initiative taken by Chief Minister Yogi Adityanath to support the industries during the COVID-19 pandemic has paid rich dividends because as many as 5,12,000 micro and small units of Uttar Pradesh have availed of loans amounting to Rs 22, 800 crore to further increase their businesses.
“With this money, the industries not only increased production in the coronavirus pandemic period but also made a stronghold in the market,” a government spokesman said.
The MSME sector, considered to be the backbone of the country, may have faced a lot of problems during the COVID-19 period, but due to government’s policy the micro and small units in the state have got a lot of relief.
An official said the chief minister himself distributed the loans to the MSMEs several times through loan fairs and issued instructions to banks that businessmen should not face problems in getting loans.
“As a result, the micro and small units under CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) have reached the first position in taking loans in the country,” he said.
CGTMSE CEO Sandeep Verma said that under this scheme, loans were guaranteed to small-scale entrepreneurs so that entrepreneurs who did not have bank guarantees and wanted to grow their business could get loans under this scheme and increase their business further.
“Since loans are guaranteed under the CGTMSE scheme, therefore banks do not face any problem in giving loans. The Uttar Pradesh government has done fabulous work under this scheme,” Verma said.
The CGTMSE scheme is being operated under the joint initiative of the Ministry of Micro and Small Industries, and SIDBI of the Central government. The CGTMSE scheme compensates the loss of loan amount received from banks by micro and small-scale industrial units working in the country.
It is worth mentioning that the top eleven states that have provided the maximum amount of loans to the industries are Uttar Pradesh, Tamil Nadu, Maharashtra, Karnataka, Kerala, West Bengal, Gujarat, Madhya Pradesh, Odisha, Andhra Pradesh and Bihar.