Govt plans to provide credit guarantee, interest subsidy on loans for electronic manufacturers.
The Ministry of Electronics and IT has proposed Credit Guarantee Fund (CGF) scheme and Interest Subvention Scheme (ISS) to help the entire electronics manufacturing ecosystem to be more competitive in the global market. These schemes will be provided under a new National Policy on Electronics in Works. The proposal will provide credit guarantee for term loans of up to Rs. 100 crore and interest subsidy on loans of up to Rs. 1000 crore. For setting up a new electronics manufacturing entity or for substantial expansion of an existing electronics manufacturing plant, the scheme will be free of collateral and third party guarantee. On the sanctioned loan amount, the government will offer up to 50% guarantee cover, which will vary on the basis of each case and the investments made. As per PTI, “…Meity shall create a fund with the nodal agency for providing guarantees for the term loans. Meity shall provide funds in advance from its annual budgetary allocation to the nodal agency for utilisation under the scheme.”