Include private educational institutions in CGTMSE scheme: Nama

To support private educational institutions that have been severely affected by the Covid crisis it was essential to bring the institutions under the scope of the CGTMSE Scheme to extend loans, he suggested

Khammam: TRS Lok Sabha party leader and Khammam MP Nama Nageswara Rao appealed to the Centre to include private educational institutions in the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme.

To support private educational institutions that have been severely affected by the Covid crisis it was essential to bring the institutions under the scope of the CGTMSE Scheme to extend loans, he suggested. Nageswara Rao on Thursday wrote a letter to Union Finance Minister Nirmala Sitharaman in this regard, said a release from the MP’s office here. Like many sectors across the country that were affected by the Covid pandemic, private schools were pushed to the brink of closure, he said.

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There were around 4.5 lakh schools across the country and they were not running for a year and a half. 95 per cent of private schools continue to be housed in rented buildings. As the schools were not functioning, the managements were not able to pay the rents and pay the salaries of the teaching and non-teaching staff, the MP explained.

The livelihood of about five crore persons was at risk due to the non-functioning of private schools. The school managements were not able to pay bus insurance and they have to be given an exemption to pay insurance on a monthly basis instead of a lump sum basis, he said.

Nageswara Rao felt that the government has a responsibility to sympathise with the private educational institutions that educate over 20 crore students. Launching the CGTMSE scheme to provide assistance to retailers affected by the Covid crisis was a welcome decision. The Centre should ensure measures offering bank loans to private educational institutions from banks under the CGTMSE scheme at the earliest, he added.

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