Of the Nu 5.3bn available as concessional credit, over two billion has been allocated for business reinvigoration. A major chunk of the Government of India-supported Economic Programme is also allocated to the production and manufacturing sector. Substantial funds have also been allocated for scaling up startups and for movie production.
The agriculture and livestock sector has been allocated Nu 500 M. People working in crop cultivation, fishing and aquaculture, poultry farming, piggery, cattle and other animal raising, agriculture machinery and infrastructure, and dairy products can avail themselves of this loan.
In this sector, a business can avail loans of up to a million ngultrum at four per cent interest.
“If businesses in agriculture and livestock have plans to enhance and develop their business, and if the expected expenditure exceeds more than a million, it will be included in production and manufacturing, where the scale of investment is up to Nu 10 M,” said Younten Phuntsho, Agriculture and Livestock Minister.
In the production and manufacturing sector, except for raw form mining and services, Cottage and Small Industries have Nu 500 M at their disposal through the ESP.
In addition, Nu 300 M will be available for scaling up existing start-ups. Those in the film industry can also avail themselves of Nu 200 M for movie production. A CSI business can get up to Nu 10 M as concessional credit.
“The four per cent interest is viable. We talked with the private sector to come up with what they can do. For example, Nu 200 M has been kept for the film industry. In our context, looking at the current movie production scenario, the Nu 200 M can make a huge difference,” said Namgyal Dorji, Industry, Commerce and Employment Minister.
Meanwhile, medium-scale businesses in the production and manufacturing sector can get credits between Nu 10 to 100 M.
However, the Nu 1.8bn allocated to this sector is not available to services, construction, raw form mining, and agro-based industries.
The highest allocation of Nu 2bn is reserved for the reinvigoration of distressed businesses of any scale with the potential to revive and stimulate economic growth.
However, loans and subsidies will not be given to housing, personal transport, import-oriented businesses, personal loans, staff incentives, and the hotels and tourism sector.
The concessional credit for business reinvigoration will have a maximum tenure of three years.
For the agriculture, livestock, and production and manufacturing sectors, loan tenures will be decided by the financial institutions.
A news release from the Prime Minister’s Office states that public announcements on the application process and criteria will be made in the coming days by financial institutions. The application window for concessional loans and reinvigoration will remain open until the end of the year.
Sherub Dorji & Deki Lhazom
