Bengaluru, May 13 (IANS): Welcoming the central government's financial aid to the industrial sector, Karnataka Chief Minister B.S. Yediyurappa on Wednesday said Rs 3 lakh crore collateral-free loans would benefit 45 lakh micro, small and medium enterprises (MSMEs) across the country.

"Rs 3-lakh crore aid will be a boon to 45-lakh MSMEs and thousands of their employees across the country. The collateral-free loans will enable them to resume operations after prolonged lockdown, enforced in March to contain the coronavirus spread," Yediyurappa said in a statement here.

Giving details of the Rs 20-lakh crore stimulus package Prime Minister Narendra Modi announced on Tuesday in a nationwide address to revive the Covid-19-hit economy, Union Finance Minister Nirmala Sitharaman said in New Delhi that the MSMEs would get collateral-free loans worth Rs 3 lakh crore to restart and rev-up their operations.

Lauding Modi and Sitaraman for the stimulus package to the manufacturing and services sectors, which contribute 75-80 per cent to the national GDP (gross domestic product) growth, Yediyurappa said Rs 90,000 crore one-time liquidity (funds) to electricity distribution companies (discoms) would help them and hundreds of their employees from losses incurred over the years.

"Similarly, Rs 30,000 crore support to non-banking financial companies (NBFCs), income-tax exemption and refund of Rs 50,000 crore to non-salaried employees and Rs 6,750-crore contribution to the Employees Provident Fund (EPF) and entrepreneurs will benefit them and their employees," said the chief minister.

The finance minister also said no-global tender for state-funded projects worth Rs 200 crore would stimulate growth and help the MSMEs to bid for them.

"None of the Covid-affected countries the world over announced such a huge economic revival package for the industrial sector. This is a bold step for motivating people to exit the lockdown and resume work," added Yediyurappa.