NCGS benefits 214 individuals from 18 districts

After the establishment of the NCGS in 2020, about 214 individuals from 18 dzongkhags have participated in the scheme

With a total loan approved amounting to Nu 898mn, the recipients include 48 beneficiaries in the agriculture sector, followed by 111 in the production and manufacturing sector, and 54 in the service sector.

This was divulged by Finance Minister Namgay Tshering when asked about the amount provided to the private sector through the National Credit Guarantee Scheme (NCGS) and the sectors and projects supported under this scheme by MP Ugyen Wangdi at the National Assembly on June 7.

The minister informed the house that the NCGS was established to increase export, reduce imports and to create job opportunities.

MP Ugyen Wangdi said the government should be ready to face the consequences given that the beneficiaries of the NCGS do not have/make much effect on the objectives of the NCGS.

โ€œAs of financial institutions, they have their own Standard Operating Procedure. The government should be aware before issue arises.โ€

However, the Finance Minister said that they are not providing lump-sum loan but as per the outcome of their businesses.

According to the minister, through this scheme, the youths were also benefited as they donโ€™t have to keep any mortgage. Moreover, youths were not allowed to keep third party collateral, which has been very challenging.

As of April this year, Thimphu with 90 projects is the highest under this scheme, followed by Paro with 23 projects, Sarpang with 16 projects, and Punakha with 15 projects.

In the agricultural sector, the projects under this scheme include crop-cultivation, agro-processing, livestock farming, forestry and others. Similarly, in the production and manufacturing sector, the projects are mostly renewable energy based projects, manufacturing enterprises, wood based products, and traditional and herbal medicines among others.

Hospitality, entertainment and recreational services are also some of the projects supported under this scheme, according to the NCGS.

Meanwhile, during the 8th NCGC held on April, 32 projects were approved with a loan amount of Nu 200.49mn, where 10 projects were approved by the Bhutan Development Bank Limited, nine projects by the National CSI Bank Limited and followed by the Bank of Bhutan with 13 projects.

The NCGS was established on October 5, 2020 in order to support the small scale industry with the motive to create job opportunity and increase export and reduce imports from other countries.

Sherab Dorji from Thimphu