Credit Guarantee Scheme for Subordinate Debt (CGSSD) is extended upto 31.03.2023. On the 13th of May, 2020, the government announced the launch of the ‘Distressed Assets Fund—Subordinate Debt for Stressed MSMEs‘ as part of the Aatma Nirbhar Bharat Package. As a result, the Government approved the ‘Credit Guarantee Scheme for Subordinate Debt’ on June 1, 2020, and the scheme was launched on June 24, 2020, to provide credit to the promoters of stressed MSMEs viz. SMA-2 and NPA accounts who are eligible for restructuring as per RBI guidelines on the books of the lending institutions through lending institutions. Initially, the plan was only valid until March 31, 2021.
- The government had already extended this scheme till 31.03.2022, in order to maintain avenues of support accessible for strained MSME Units.
- The government has now agreed to prolong the plan until 31.03.2023, based on proposals from the scheme’s stakeholders.
- The Emergency Credit Line Guarantee Scheme (ECLGS) was also extended until March 31, 2023, according to Finance Minister Nirmala Sitharaman.
According to the India Brand Equity Foundation (IBEF), there are around 6.3 crore MSMEs in India. This industry, second only to agriculture in terms of job creation, is one of the most important in the country. According to specialists, this industry has been the hardest hit by the coronavirus pandemic.