Govt may approve setting up Rs 5,000-crore stressed asset fund for MSMEs

With no promise of additional requisite funding, MSME ministry plans to cut existing schemes

The government may approve setting up a Rs 5,000-crore stressed asset fund for small businesses, as suggested by a Reserve Bank of India committee. But the tight financial condition of the Centre may mean existing schemes for micro, small and medium enterprises (MSMEs) will face a funding cut, sources said. 

The U K Sinha Committee for MSMEs had in June suggested the fund along with a broad range of MSME reforms for small firms still reeling under the after effects of demonetisation and a liquidity crisis. But a lack of available ways to finance it has delayed the implementation. Case