World Bank to give $750 mn to support 15 lakh viable MSMEs
The World Bank said it will give a $750 million-budget support to 15 lakh MSMEs to increase liquidity access for viable small businesses impacted by COVID-19. During the 2020 fiscal (July 2019-June 2020), the World Bank has extended $5.13 billion loans to India — which is the highest in a decade. This includes $2.75 billion given in three months in response to the COVID-19 pandemic. Junaid Ahmad, World Bank country director in India, said this funding is under the multilateral lender’s Development Policy Loan, which is a direct budget support. The funding would support the government’s initiative to protect the micro, small and medium enterprises (MSME) sector by unlocking liquidity, strengthening non-banking financial companies and small finance banks and enable inclusive access to financing. Ahmad said in the next stage of the World Bank’s assistance programme for MSMEs, the multilateral lender would engage with the MSME ministry and the states to ensure capacity development at cluster level.
Eight core industries’ output contracts 23.4% in May
Contracting for the third month in a row, the output of eight core infrastructure industries shrank by 23.4 per cent in May, due to the coronavirus-induced lockdown, according to an official data. The eight core sectors had expanded by 3.8 per cent in May 2019, the data released by the commerce and industry ministry showed. Barring fertilisers, all seven sectors — coal, crude oil, natural gas, refinery products, steel, cement, and electricity — had recorded negative growth in May. The output of coal, natural gas, refinery products, steel, cement and electricity declined by 14 per cent, 16.8 per cent, 21.3 per cent, 48.4 per cent, 22.2 per cent, and 15.6 per cent, respectively. During April-May 2020-21, the sectors’ output dipped by 30 per cent as compared to a positive growth of 4.5 per cent in the same period previous year. These eight industries account for 40.27 per cent in the Index of Industrial Production (IIP).
Six killed in boiler explosion at NLC power plant in TN
Six men were killed and 16 others injured when a boiler exploded at the NLC India’s thermal plant at Neyveli in Tamil Nadu. The mishap occurred at the fifth unit of the thermal power station-II (210 MW x 7) when workers were in the process of resuming operations. The injured include employees who have sustained at least 40 per cent burn injuries according to an initial assessment, an official said. NLC India Ltd (NLCIL) is a navaratna enterprise of government engaged in mining of lignite and generation of power through lignite based thermal power plants. NLCIL was established in 1956, following the discovery of lignite deposits in Neyveli, Tamil Nadu. NLCIL comes under administrative control of ministry of coal and serves as an important source of power generation to Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Telangana, Rajasthan and Puducherry.
India to ban Chinese companies from highway projects
India will not allow Chinese companies to participate in highway projects, including those through joint ventures, Union Minister Nitin Gadkari said amid border standoff with China. Gadakri also said the government will ensure that Chinese investors are not entertained in various sectors like Micro, Small and Medium Enterprises (MSMEs). Amid escalating tensions, the government on Monday banned 59 apps, mostly having Chinese links, citing threats to national security. The minister said a policy will be out soon banning Chinese firms and relaxing norms for Indian companies to expand their eligibility criteria for participation in highway projects. Currently only a few projects which were undertaken much earlier involve some Chinese partners. When asked about this, the minister said that the new decision will be implemented in current and future tenders.
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