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Interest payment on SIDBI bonds to govt deferred
New Delhi, Aug 19: To give a boost to small scale sector, government today said it has decided to defer payment of all interest by Small Industries Development Bank of India on SIDBI bonds for ten years.
New Delhi, Aug 19: To give a boost to small scale sector, government today said it has decided to defer payment of all interest by Small Industries Development Bank of India on SIDBI bonds for ten years.
This is to enable the SIDBI implement a restructuring package for the SSI sector which would cost the institution about Rs 900 crore, Minister of State for Finance Anandrao Adsul told the Lok Sabha.
Interest payment on SIDBI bonds to the tune of Rs 174 crore per annum totalling Rs 1750 crore in ten years will be deferred, Adsul said in a statement on restructuring package of SIDBI.
This follows consultations between government and SIDBI to provide loans to the SSI sector at very competitive rates, he said.
Under the package, interest on all outstanding loans of state financial corporations will be reduced by 2 per cent and a rebate of 2 per cent in rate of interest will be provided by SIDBI for all future refinance to these corporations.
The package allows a one-year moratorium for repayment of existing dues, the minister said adding these measures will cost the SIDBI about Rs 900 crore.
"Nevertheless, in view of the importance of SSI sector and the need for helping the small scale entrepreneur, the Central Government has advised SIDBI to go ahead with this revitalisation package,” the minister said in a statement.
Bureau Report
Interest payment on SIDBI bonds to the tune of Rs 174 crore per annum totalling Rs 1750 crore in ten years will be deferred, Adsul said in a statement on restructuring package of SIDBI.
This follows consultations between government and SIDBI to provide loans to the SSI sector at very competitive rates, he said.
Under the package, interest on all outstanding loans of state financial corporations will be reduced by 2 per cent and a rebate of 2 per cent in rate of interest will be provided by SIDBI for all future refinance to these corporations.
The package allows a one-year moratorium for repayment of existing dues, the minister said adding these measures will cost the SIDBI about Rs 900 crore.
"Nevertheless, in view of the importance of SSI sector and the need for helping the small scale entrepreneur, the Central Government has advised SIDBI to go ahead with this revitalisation package,” the minister said in a statement.
Bureau Report