Budget : Micro, Small and Medium Enterprises

Budget: Micro, Small and Medium Enterprises

29 Feb. 2008

 

A risk capital fund being created in the Small Industries and Development Bank of

India (SIDBI); Credit Guarantee Trust with SIDBI had extended guarantees to

89,129 units for an amount of Rs.2,479 crore as on January 31, 2008; SIDBI to

reduce the guarantee fee from 1.5 per cent to 1 per cent and the annual service fee

from 0.75 per cent to 0.5 per cent for loans up to Rs.5 lakhs.

 

Support to MSME's

 

(i) Two funds of Rs.2,000 crore each to be created in SIDBI - one for risk capital

financing and other for enhancing refinance capability to the MSME sector.

 

(ii) Fund of Rs.5,000 crore to be created in NABARD to enhance its refinance

operations to short term cooperative credit institutions;

 

(iii) Fund of Rs.1,200 crore to be created in NHB to enhance its refinance operations

in the rural housing sector.

 

Coir Board

Coir Board included in Section 10(29A) and exempted from income tax.