Finance minister Nirmala Sitharaman on Thursday exhorted businesses in North-Eastern India to approach banks for funds and explore export markets.
Speaking at an interactive session with entrepreneurs in Guwahati, Sitharaman said businesses in that region should also tap potential in areas like aggregation of local produce and improve last-mile connectivity, for better supply of goods and services. This would ultimately spur economic growth.
Sitharaman was in Guwahati as part of her post-Budget outreach programmes.
“It is also for the local entrepreneurs to see the opportunity and come into warehousing, seek banks’ help. Banks can also provide you additional capital,” Sitharaman said. She highlighted that the effective resolution of three critical issues — aggregation, last-mile connectivity and warehousing — could potentially bring in rich dividends for the North-Eastern region.
Key loan scheme to be extended
Finance secretary TV Somanathan said the government’s Rs 50,000-crore loan guarantee scheme for Covid-affected sectors (which is a part of the Rs 5 lakh-crore guaranteed credit programme) will be extended by three months beyond March 31. The extension of the scheme, meant for bolstering health infrastructure in areas other than the eight top cities, will allow businesses more time to do their due diligence for investments.
Under the scheme, the government will offer guarantee up to 50%; however, in case of an aspirational district, it
will go up to 75%. The official guarantee offers banks some comfort to extend the loans to the beneficiaries at a cheaper rate, as the risks are limited.
Sitharaman said the Budget for FY23 stands for continuity in key policy regime and aspires to create durable infrastructure for sustained economic growth.