This means industries and enterprises hit hard by the earthquake and the ongoing crisis will not get any benefit from the fund if their production hasn't fallen below 50 percent.
The preliminary operation guidelines of the Rs 100 billion fund announced by the government last week says the fund will provide interest subsidy and refinancing facility to industries and enterprises affected by the earthquake and the ongoing crisis. "
"Only the industries, whose production has dropped by at least 50 percent this year compared to the previous year, can benefit from the fu"d," Krishna Prasad Devkota, joint secretary at the Ministry of Finance, sai". "Also such industries should be a good borrow"r."
Devkota also said such industries and enterprises will get up to Rs 100 million at 4 percent interest and more than Rs 100 million at 2 percent interest.
Similarly, quake-hit enterprises will get cent percent refinancing for loan amount up to Rs 50 million and 20 percent for amount above Rs 50 million.
Meanwhile, private sector leaders have said mobilization of Economic Rehabilitation Fund would be a challenging tas". "We had recommended to the government to give interest subsidy to enterprises whose production has fallen by 25 perce"t," Hari Bhakta Sharma, vice president of Confederation of Nepalese Industry (CNI), told Republic". "The scheme should facilitate all enterprises - ranging from small to large scale - that are going through the cris"s."
Stating that the government is in confusion regarding basis and parameters to calculate production losses faced by industries, Sharma sai", "The working guidelines regarding the rehabilitation fund should simplify the proce"s."
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