Chandigarh, Apr 30 (IANS): To facilitate industrial units in retaining their employees amid the COVID-19 pandemic, the state government has formulated Haryana MSME revival Interest Benefit Scheme to provide MSME units so that they could pay wages to all their employees.

A decision to this effect was taken in the Cabinet which met virtually under the chairmanship of Chief Minister Manohar Lal Khattar.

Under this scheme, all the MSME units working in Haryana as on or before March 15 will be eligible for 100 per cent interest benefit on loans availed for payment of the wages of employees or other expenses up to a maximum of Rs 20,000 per employee for a period of six months.

The interest benefit will be limited to the interest paid by the unit to the bank or financial institution up to a period of six months.

The interest benefit will be calculated at the interest rate of maximum 8 per cent per annum or actual interest rate charged by the bank or financial institution on term loan or working capital loan whichever is lower, an official statement said.

To avail the benefits of this scheme, the industrial unit should be in commercial production for at least 80 per cent of days between February 1, 2020, and March 15.

In case a similar incentive is extended by the government of India to the MSME units, then under this scheme only incremental benefit shall be provided to MSME units only up to a limit to make the total interest benefit to 8 per cent per annum on term loan or working capital loan.