In this article, we are discussing a newly released YSR Scheme namely Navodayam Scheme. The aim of this is to provide financial assistance to the MSMEs. The scheme was launched on 17th October 2019. Under this scheme Rs. 3500 crore will be given to 85000 MSMEs under one-time Restructuring (OTR)
The State finance minister Buggana Rajendranath told the media that this scheme will benefit Micro, Small & medium enterprises (MSMEs).
Under this scheme, the people who have loan accounts under MSME act 2006, will be restructured. This is happening after the RBI has decided to permit a one-time restructuring of existing loans to MSMEs. This decision was taken by RBI on 1st January 2019.
This scheme will be like a lifeline to stressed MSME. This is because, under the Navodayam scheme, all the eligible MSME will be permitted one-time restructuring of loan accounts up to 31/03/2020.
Note : Not sure what one-time restructuring means? Go to the FAQ section below.
On 1st January 2019, RBI gave a decision in favour of MSMEs in the country. As per this decision, one-time restructuring of existing loans to the enterprises that are in default but ‘standard’ as on January 1, 2019, without an asset classification downgrade.
To ensure smooth functioning of Navodayam Scheme, timely meetings are being conducted. Under the Novodayam scheme, the government will support & monitor the implementation of One Time Restructuring (OTR) of MSME units. As per the estimation, more than 85 thousand MSME units are eligible for OTR that is worth Rs. 3493 Crores.
- One time Restructuring of eligible MSME Loans
- Previous govt. in session 2014-15 released 2000 crore on a selective basis. But under this Navodayam Scheme priority is given to MSMEs under OTR
- Government is going to reimburse 50 per cent of the auditor fee. Maximum of Rs. 2 Lakh can be reimbursed.
The commonly asked question regarding Navodayam Scheme is that how to avail for navodayam scheme benefit. In this section, we will discuss whether there is any online registration process or offline application form that eligible MSMEs need to fill in, to avail the scheme benefit.
At the time of writing this article, the concerned department has not released any information regarding the application procedure. It is expected that once all arrangements are done, the online registration facility might be started for eligible MSME’s. For all latest information regarding YSR Navodayam Scheme, stay connected with us.
YSR Navodaytam Scheme FAQ
What is a restructured loan?
A new loan that replaces the outstanding balance on an older loan, and is paid over a longer period, usually with a lower instalment amount is called restructured loan & process is called restructuring of loans. This is usually done to accommodate a borrower in financial difficulty and, thus, to avoid a default.
The aim is to permit one-time restructuring of MSME Loans
How many MSME will get the benefit?
More than 85 thousand beneficiary MSMEs have been identified. Rs. 3500 Crore has been sanctioned by the state government for One-time Restructuring (OTR)
We hope that now you have information regarding the YSR Navodayam Scheme. We are keeping a close look at all the latest updates regarding this scheme. You are advised to keep checking this from time to time for the latest information.