New MSME scheme - distressed assets fund-sub-ordinate debt

This document outlines a new scheme from the Ministry of MSMEs called the Distressed Assets Fund–Sub-ordinate Debt for MSMEs. It provides a Rs. 20,000 crore guarantee cover to support operational MSMEs that are distressed or have become Non-Performing Assets (NPAs). The scheme allows promoters to receive credit, which they can infuse back into their business as equity, thereby improving liquidity. This initiative aims to support approximately 2 lakh MSMEs, helping to revive economic activity and protect jobs.

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