Thiruvananthapuram : The government on Friday announced Rs 5650 package for small traders, businesses and farmers struggling with the second wave hardships. The special package was announced by Finance Minister KN Balagopal in the Assembly.
Government will take up on itself 4 percent interest on all loans up to 2 lakhs availed from state-central financial institutions, state finance institutions, cooperative establishments and commercial banks. The package will benefit an estimated 1 lakh people with loan subsidies running to the tune of Rs 2000 crores on state exchequer. Loans to be availed from 1 August too will be covered under the relief. The govt will also waive rentals from July to 31st December on shops it rented out to various enterprises.
Lockdown necessitated by Covid surges has impacted state economy adversely. Small traders and small businesses, are specially hard-hit owing to the crisis, said the minister. The Rs 5650 crore-package comprises Rs 2000 crore toward loan interest subsidy, special kit Rs 526 crore, rent and building tax waiver Rs 274 core, KFC Rs 850, KSFE Rs 300 crore and pension payments Rs 1700 crore.
Although relaxations are being brought about in phases depending on the virus decline, small scale entrepreneurs need to be lend a helping hand., the minister said The state government had announced similar packages during the two waves of Covid . Paying of welfare pensions punctually and subsidizing interest on loans are part of that policy.
Building tax shall be waived from July to December for micro small and medium enterprises(MSEMs). Also fixed charges on electric bills will stand waived during this period, the minister announced.
