Tag Archives: MSME

Tourism Minister G Kishan Reddy has said that 31 MSME units were sanctioned Rs234.7 crore during 2021 by way of sanctioned Emergency Credit Line Guarantee Scheme (ECLGS) to MSME by Tourism Finance Corporation India (TFCI) under Atmanirbhar Bharat package announced on May 13 this year. Apart from that, loan of Rs1541.65 crore was also sanctioned to 47 borrowers by TFCI during 2018-19 to 2019-20, he said.

The MP&CG Chapter of TAAI recently organised a physical event for its members at Crescent Spa & Resort, Indore. Hemendra Singh Jadon, Chapter Chairman (MP & Chhattisgarh), TAAI, shares, “We organised our annual members meet on October 31 at the resort keeping all health protocols in mind, and 45 members attended it. The aim is to not just conduct our annual meet but also to build confidence among our clients that we are ready to travel. We conducted presentations on MSME benefits and on Star Air airline for members.”

According to an RBI survey, the aviation, automobiles, construction, MSME, and tourism & hospitality sectors would be the hardest-hit by COVID-19 pandemic. The bank carried out a systemic risk survey ‘to capture the perceptions of experts, including market participants, on the major risks faced by the financial system’.  Within the tourism sector, around 90 per cent of the respondents stated that the ‘prospects of recovery within the sector in the next 6 months appear bleak’. The aviation sector appears to be a close second, with nearly 85 per cent of the respondents categorising the prospects as grim. The results of the survey were published in its financial stability report released recently. It mentioned that the above-mentioned five sectors are adversely impacted by the coronavirus pandemic. Respondents said that “while most sectors face sizeable and immediate revenue losses, the adverse impact is seen in sectors where consumption spending is discretionary in nature”.

While the tourism industry was disappointed with the sector not being mentioned in the stimulus package announced by the finance minister, Yogendra Tripathi, Secretary – Tourism, Government of India, has said that the new definition of MSME, which has removed the differentiation between manufacturing and services sector MSMEs, shall benefit tourism as 70-80% of the sector falls under MSME. “Throughout my tenure, I have been hearing from the industry that 70-80 per cent of the stakeholders in tourism fall under the MSME category. The biggest announcement under Atmanirbhar Bharat programme was pertaining to the MSMEs. Hence, we have clarified to the industry that the biggest announcements are there for them as well. The fact that the differentiation of definition between the manufacturing and the services sector MSME, which has been removed and the caps which have been changed for the services sector MSMEs, like tourism sector MSMEs, shall bring benefits. It’s not just the benefits which have been given, but it also further expands the scope of the tourism industry, to be part of the MSME definition and to take the benefits, which are due under the MSME category of Atmanirbhar Bharat announcements. I believe that the industry has started understanding that because they are now bringing out 1-2 difficult areas wherein the tourism industry may not get the kind of benefits it has been expecting. We are bringing up those difficulties to the appropriate authorities to see if we can resolve them, so that more benefits reach out to the MSME tourism industry,” he said.