World Bank loan for small enterprises
It is a bonanza to the Micro, Small and Medium Enterprises (MSME) sector. A loan agreement worth $200 million signed with the World Bank (IBRD) will enable a Technology Centre System Programme (TCSP) project to fructify.
There is an expectation that there will be better technology and business advisory services, in order to improve the skill development of people through financially sustainable technology centres. It is expected to boost productivity in the country.
Hence, TCSP will set up 15 new Technology Centres (TCs) as well as modernize and upgrade the existing 18 TCs at an estimated cost of Rs. 2,200 crore (US$ 400 million), including World Bank assistance of US$ 200 million, said the Ministry of Finance.
Moreover, the project is divided into three levels that include technological aid to the TCs, making investments to upgrade and develop the current enterprises and finally support the MSME Ministry with aid for implementing and managing the project.
The agreement was signed by Onno Ruhl, Country Director (India), World Bank and Tarun Bajaj, Joint Secretary, Department of Economic Affairs. The loan has been extended for a period of five years.